Deepak Nitrite Ltd: Strong Beat

Research evidence excerpt

M

Update

August 5, 2026 03:30 AM GMT

Morgan Stanley Asia (Singapore) Pte.+

Deepak Nitrite Ltd | Asia Pacific

Vivek Rajamani

Equity Analyst

Strong Beat

Mayank Maheshwari

Equity Analyst

AlphaSignals Earnings Reaction

Morgan Stanley India Company Private Limited+

Unchanged

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Pranitha Shetty

Research Associate

Source: Company data, Morgan Stanley Research

Deepak Nitrite's (DPNT) reported a solid beat to MSe and Street expectations with a

core EBITDA of ~Rs5.2bn (~3x YoY, +69% QoQ) underpinned by improvement in

both phenolics and Advanced Intermediates. The call is scheduled for Thursday, 6th

August, 3:30pm IST. Key highlights:

1) Phenolics: Core EBIT at nearly Rs4bn (82% QoQ and ~4x YoY) despite adjusting

for ~Rs0.2bn government incentive this quarter. Strong pricing and lower cost

inventory supported strong margins. QTD integrated phenol spreads have softened,

despite higher phenol/acetone prices.

2) Advanced Intermediates: EBIT at Rs0.7bn, nearly 2x both QoQ and YoY likely

supported by commissioning of backward integration projects and strong plant

operating rates.

3) Project updates: DPNT announced capex of Rs25bn for a 240ktpa Bisphenol

plant, a key component of its ongoing downstream integration into polycarbonate

value chain.

Deepak Nitrite Ltd (DPNT.NS, DN IS)

India Oil & Gas | India

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 4, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

Overweight

In-Line

Rs1,869.00

9

Rs1,717.70

Rs1,904.40-1,280.00

136

Rs234,282

Rs245,062

Rs293

Fiscal Year Ending

03/26 03/27e 03/28e 03/29e

EPS (Rs)**

Prior EPS (Rs)**

EPS (Rs)§

Revenue, net (Rs mn)

EBITDA (Rs mn)

ModelWare net inc (Rs

mn)

P/E

P/BV

RNOA (%)

ROE (%)

EV/EBITDA

Div yld (%)

FCF yld ratio (%)**

Leverage (EOP) (%)

40.36 50.24 61.78 101.41

35.59 54.87 61.40 81.83

78,742 109,514 111,690 129,523

9,679 12,712 15,796 24,362

5,505

6,852

8,427 13,832

31.8

3.0

9.8

10.2

19.2

0.6

(5.0)

21.3

34.2

3.7

10.7

11.7

21.5

0.5

(12.4)

63.0

27.8

3.3

8.8

13.2

…