The Indian specialty chemicals sector, valued at $64.5 billion in 2024, is projected to grow at a CAGR of 3.8 percent, reaching $92.6 billion by 2033. This growth is driven by demand from industries like agriculture, construction, and automotive, alongside a shift toward sustainable solutions and increased R&D investments.
Price Movement
With a market capitalization of Rs 26,678.48 crore, on Friday, the shares of Deepak Nitrite Ltd closed at Rs 1,956.50 per share, decreased 0.73 percent as compared to the previous closing price of Rs 1,970.50 apiece.
Matter Explanation
Deepak Chem Tech Limited (‘DCTL’), a material wholly owned subsidiary of Deepak Nitrite Limited, inter alia considered and approved setting up manufacturing complex to produce Phenol & Acetone, lsopropyl Alcohol, and related infrastructure/utilities with the aggregate investment of around Rs 3,500 Crores which shall be funded through the mix of debt and equity.
Moreover, the company operates at full capacity, producing 3.3 lakh TPA of phenol, 2 lakh TPA of acetone, and 80,000 TPA of isopropyl alcohol. It plans to add 3 lakh TPA of phenol, 1.85 lakh TPA of acetone, and 1 lakh TPA isopropyl alcohol capacity over three years to meet rising demand.
Further, the Board of Directors of DCTL at the said meeting also approved setting up a multi-purpose manufacturing facility with a capital outlay of around Rs 220 Crores for specialty fluorochemicals.
Also read: Realty stock in focus after signing ₹693 Cr deal to sell Kolkata IT SEZ tech park to Srijan Group
Financial Performance
The company reported a decrease of 5.2 percent YoY in revenue from operations from Rs 2,009 crore in Q3FY24 to Rs 1,903 crore in Q3FY25. Their Net profits decreased by 51 percent YoY from Rs 202 Crore to Rs 98 crore over the same period.
Strategic Projects
The company is launching new products from existing assets to boost Q4 revenue and margins. A nitric acid complex will contribute from Q1 FY26, while a new R&D center opens by Q4 FY25. Upcoming integrations like MIBK and MIBC by H1 FY26 support energy, life sciences, and import substitution goals.
Margin Guidance
The company expects margin recovery as demand stabilizes and new projects ramp up. Management anticipates profitability to normalize between Q1 and Q2 FY26, with Q4 showing a significant improvement over Q3, indicating a positive turnaround and gradual return to healthier margins in the coming fiscal year.
Company profile
Deepak Nitrite Limited is engaged in the manufacturing and trading of chemicals. The Company operates through two segments: Advanced Intermediates and Phenolics. It’s Advanced Intermediates segment offers sodium nitrite, sodium nitrate, nitrotoluidines, fuel additives, nitrosyl sulphuric acid, xylidines, etc.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
