Deepak Fertilisers profit drops 22% as input costs bite
Revenue climbed 12% to ₹11,506 crore, but margin pressure from raw materials and subsidy gaps dragged net profit down to ₹739 crore for FY26.
— 4 earlier stories on Deepak Fertilisers And Petrochemicals Corporation Ltd. →What's new
- Consolidated revenue rose 12% to ₹11,506 crore for FY26.
- Operating EBITDA fell 13% to ₹1,684 crore due to cost pressures.
- The board recommended a dividend of ₹10 per share.
Why this matters
The results show a classic margin squeeze where top-line growth fails to offset rising input costs and insufficient government subsidy support. While the dividend remains steady, the double-digit decline in both EBITDA and net profit signals a challenging operating environment for the company.
What we're watching
- Whether subsidy support improves in the coming quarters.
- Management commentary on raw material price trends.
- The impact of the new board appointment on governance.
The full read
Deepak Fertilisers closed FY26 with a mixed performance. While consolidated revenue grew 12% to ₹11,506 crore, the bottom line failed to keep pace. Operating EBITDA slipped 13% to ₹1,684 crore, and net profit dropped 22% to ₹739 crore. The company cited raw material cost pressures and a lack of adequate subsidy support as the primary drivers behind the margin contraction. Despite the earnings decline, the board maintained its capital allocation policy, recommending a dividend of ₹10 per share, matching the prior year's payout. The filing also confirmed the re-appointment of auditors and the addition of Mr. Yeshil Mehta as a non-executive director. These results were largely anticipated, offering a clear view of the current cost-side headwinds facing the business.
Questions answered
- How did Deepak Fertilisers perform in FY26?
- The company saw revenue grow 12% to ₹11,506 crore, but profitability suffered. Operating EBITDA dropped 13% to ₹1,684 crore, and net profit fell 22% to ₹739 crore.
- What caused the decline in profitability?
- Management attributed the profit drop to raw material cost pressures and inadequate subsidy support.
- What is the dividend payout for the year?
- The board recommended a dividend of ₹10 per share, which is consistent with the payout from the previous year.
- Were there any significant governance changes?
- The company re-appointed its auditors and added Mr. Yeshil Mehta to the board as a non-executive director.
Story so far
All notes on DEEPAKFERT →- 28 May 2026 · 3:56 PM IST Deepak Fertilisers profit drops 22% as input costs bite
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- today Deepak Fertilisers profit drops 22% as margins buckle under costs
- today Deepak Fertilisers profit drops 22% as raw material costs bite