1 year ago
Emkay Lowers Deepak Nitrite Estimates Due to Margin Pressures
Deepak Nitrite, a company, had a tough quarter, with profits down significantly.
A financial company called Emkay Global, which gives advice on stocks, adjusted their expectations, expecting the company's profits to be lower in the coming years.
The company's sales in some areas went down, while others saw better profit margins.
Despite some improvements and new projects, the financial firm is cautious, because of the issues, particularly those related to prices.
The company is also working on new projects to expand its production.
Deepak Nitrite's Q1FY26 EBITDA fell 44% YoY to ₹1.7 billion.
Emkay Global reduced its EBITDA estimates for FY26–28 by up to 28%.
Advanced Intermediates revenue decreased by 15% YoY due to weak demand.
Phenolics revenue decreased by 12% YoY, but EBIT margin improved sequentially.
Deepak Nitrite is executing capex projects, with a long-term plan by FY28.
- Who
- Deepak Nitrite and Emkay Global.
- What
- Deepak Nitrite's Q1FY26 financial performance and Emkay Global's analysis.
- Where
- Not explicitly mentioned.
- When
- Q1FY26 and projections for FY26–28.
- Why
- Due to margin pressure and weak demand in some sectors.
Deepak Nitrite
Emkay Global
Future Outlook
Deepak Nitrite
Continued capital expenditure.
Emkay Global
Emkay remains cautious.
Key facts
- EBITDA Decline
- 44% YoY to ₹1.7 billion
- Emkay's Target Price
- ₹1,800
- AI Revenue Drop
- 15% YoY
- Phenolics Revenue
- ₹12.9 billion
- FY26 Capex
- ₹8–10 billion
