Deepak Fertilisers profit drops 22% as margins buckle under costs
Revenue climbed 12% to ₹11,506 cr in FY26, but rising raw material prices and subsidy shortfalls cut deep into the bottom line.
— 4 earlier stories on Deepak Fertilisers And Petrochemicals Corporation Ltd. →What's new
- FY26 revenue reached ₹11,506 cr, a 12% increase over the previous year.
- EBITDA fell 13% to ₹1,684 cr due to raw material costs and subsidy gaps.
- The board recommended a dividend of ₹10 per share.
Why this matters
The results show a clear disconnect between top-line growth and operational profitability. While the company is selling more, the cost of doing business is rising faster than its ability to pass those expenses on to customers.
What we're watching
- Whether raw material prices stabilize in the coming quarters.
- Any updates on the subsidy shortfall that pressured margins this year.
- The impact of new board member Yeshil Mehta on governance.
The full read
Deepak Fertilisers grew its top line by 12% in FY26 to ₹11,506 crore, but the numbers reveal a company struggling with input costs. EBITDA slipped 13% to ₹1,684 crore, while net profit fell 22% to ₹739 crore.
Margins are under siege.
The culprit is a combination of rising raw material prices and a persistent subsidy shortfall that continues to squeeze profitability, forcing the company to navigate a difficult environment where volume growth is simply not enough to offset the rising cost of doing business. Despite the earnings contraction, the board maintained its capital allocation policy by recommending a dividend of ₹10 per share. The appointment of Yeshil Mehta as an additional director rounds out the board changes, though this is a routine governance update rather than a shift in strategy. The next test is whether the company can defend its margins if these input pressures persist into the new fiscal year.
Questions answered
- How did Deepak Fertilisers perform in FY26?
- The company grew revenue by 12% to ₹11,506 crore, but profitability suffered. EBITDA fell 13% to ₹1,684 crore, and net profit dropped 22% to ₹739 crore.
- What caused the decline in profit?
- Management cited margin pressure stemming from elevated raw material costs and a shortfall in government subsidies.
- What is the dividend payout?
- The board recommended a dividend of ₹10 per share, which is a 100% payout consistent with the previous year.
- Were there any major management changes?
- Yeshil Mehta was appointed as an additional director, alongside the routine re-appointment of auditors.
Story so far
All notes on DEEPAKFERT →- 28 May 2026 · 3:48 PM IST Deepak Fertilisers profit drops 22% as margins buckle under costs
- today Deepak Fertilisers profit drops 22% as costs outpace revenue
- today Deepak Fertilisers profit drops 22% as input costs bite
- today Deepak Fertilisers annual profit drops 18% on raw material costs
- today Deepak Fertilisers profit drops 22% as raw material costs bite