Deepak Fertilisers profit drops 22% as raw material costs bite
Annual results show a 12% revenue gain to ₹11,506 cr, but margin pressure from raw material costs and subsidy gaps cut net profit to ₹739 cr.
— 4 earlier stories on Deepak Fertilisers And Petrochemicals Corporation Ltd. →What's new
- Revenue grew 12% to ₹11,506 cr for FY26.
- Operating EBITDA fell 13% to ₹1,684 cr due to margin headwinds.
- The board recommended a dividend of ₹10 per share.
Why this matters
The results show a clear disconnect between top-line growth and bottom-line profitability. Elevated raw material costs and insufficient subsidy support are squeezing margins, making the 22% profit drop the primary takeaway for investors.
What we're watching
- Any shift in government subsidy policy to alleviate margin pressure.
- Management commentary on raw material cost trends for FY27.
- Whether the dividend payout ratio remains sustainable if profits continue to slide.
The full read
Deepak Fertilisers grew its top line by 12% in FY26 to ₹11,506 crore, yet the company struggled to convert that growth into earnings. Operating EBITDA fell 13% to ₹1,684 crore, while net profit dropped 22% to ₹739 crore.
Margins are under siege.
The culprit is a combination of elevated raw material costs and insufficient subsidy support, which together created a persistent margin squeeze throughout the year. Despite the earnings contraction, the board maintained its payout policy by recommending a dividend of ₹10 per share. These results are largely anticipated and reflect the current cost environment for the sector. The open question is whether the company can pass on these input costs or if it remains tethered to the pace of government subsidy disbursements. Revenue growth is not enough to offset the rising cost of production.
Questions answered
- How did Deepak Fertilisers perform in FY26?
- The company grew revenue by 12% to ₹11,506 crore, but profitability suffered. Net profit fell 22% to ₹739 crore, and operating EBITDA dropped 13% to ₹1,684 crore.
- What caused the decline in profitability?
- The company faced margin headwinds driven by higher raw material costs and inadequate subsidy support from the government.
- What is the dividend payout for the year?
- The board recommended a dividend of ₹10 per share, which is a 100% payout consistent with the company's prior-year practice.
- Are there any other significant updates from the board meeting?
- No. The board also handled routine governance matters, including the re-appointment of directors and auditors, which do not change the company's financial trajectory.
Story so far
All notes on DEEPAKFERT →- 28 May 2026 · 3:23 PM IST Deepak Fertilisers profit drops 22% as raw material costs bite
- 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 margins buckle under costs