Deepak Nitrite poised for a sharp FY2027 revenue rebound

Indian specialty chemicals maker Deepak Nitrite Ltd. (NSE: DEEPAKNTR) is set for a sharp revenue recovery in fiscal 2027, driven by a rebound in its Phenolics business. The segment accounts for about 70% of group revenue and saw sales fall 7% in fiscal 2026 as weaker realizations weighed on a business exposed to phenol and acetone prices and spreads. Phenolics’ average selling price fell 14% during the year, reflecting pricing pressure and volatility in feedstock markets despite relatively resilient underlying demand.

Visible Alpha consensus points to a reversal in that trend in fiscal 2027. Average selling prices for Phenolics are expected to rise 30% year-on-year to ₹118 per kg, lifting segment revenue 27% to ₹68.7 billion even as volumes are forecast to decline 2% to 595,000 tons. That would make pricing, rather than volume growth, the main driver of Deepak Nitrite’s anticipated recovery.

Analysts expect Deepak Nitrite’s total revenue to rise 25% to ₹98.7 billion in fiscal 2027, reversing a 5% decline in fiscal 2026. Advanced Intermediates is also expected to provide a stable source of growth, with revenue forecast to increase 20% to ₹30.7 billion, supported by higher volumes, new products and benefits from recent backward-integration projects.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.