DEEPAKNTR - Deepak Nitrite Limited Share Price

Q1: "How many products would be coming up? Where are we in terms of these products with the customers, the user industries/applications? And if possible, the size of revenue which Company is expecting from these products put together?"
I shared that we have a pipeline of about 15 products in various stages of development"”R&D, piloting, and awaiting customer feedback. Key application sectors include mining chemicals, flame retardants, personal care, flavors and fragrances, and polymers. We aim to start commercializing several of these in the first half of FY27, contingent on passing validation cycles and customer requirements.

Q2: "What volumes were we exporting before and after the tariffs on sodium nitrite?"
Historically, our exports to the U.S. were about 5,000 tonnes per year. The previous tariff overhang included a nearly 105% combined tax, which has now been significantly reduced. With the tariff removal, we're actively engaging with customers to recapture our market role in sodium nitrite consumption in the U.S.

Q3: "How do you see the opportunity from the EU trade deal, particularly concerning product exports?"
The EU-India FTA requires ratification and will take 6-8 months. While it benefits exports, it mainly opens opportunities for EU firms to export to India. We look forward to procuring raw materials from Europe with removed duties. Indian businesses, including ours, stand to gain from reduced trade barriers, enhancing overall competitiveness in various sectors.

Q4: "When can we expect the full benefit of nitric acid in operational numbers?"
We commissioned the nitric acid plant in mid-December 2025. The current quarter and the next will see nearly 100% utilization. There were delays due to the separation of our nitric acid and nitration plant commissions but both are operational now, setting the stage for improved performance.

Q5: "Can you help us understand which product category has seen significant margin compression?"
The major pinch points were due to delayed antidumping announcements affecting pricing and increased costs from procuring necessary raw materials at spot prices. The decision to aggressively place products led to a temporary margin pressure. We're optimistic for recovery in Q4 FY26 driven by improved integration and operational effectiveness.

Q6: "What green shoots are we seeing for Q4 FY26?"
We expect margins to return to normal levels aided by our integration. Demand is showing improvement in sectors like agrochemicals, mining chemicals, explosives, and polymers. Our domestic phenol demand remains robust. The strategic trade agreements and integration benefits lay a positive outlook moving forward.

Q7: "How are we managing the favorable pricing environment amidst the oversupply issue?"
While pricing pressures exist due to global oversupply, our strategy was to maintain market presence, even if it led to short-term pricing drops. We are collaborating with customers to optimize pricing while focusing on quality and consistency as we move forward into subsequent quarters.

Q8: "What is the CAPEX for FY26 and FY27?"
Our CAPEX for FY27 is around INR 2,500 crore. For FY26, we've already spent around INR 100 crore, bringing the total expected spending to approximately INR 1,200"“1,300 crore.

Q9: "Can you provide insights into the disconnect between phenol spreads and gross margins?"
Phenol spreads are based on international indices, whereas our margins reflect our strategic procurement advantages and increased capacity utilization. We leverage our position in the Indian market, which allows us to maintain better margins despite global spread fluctuations.

Q10: "Have we started manufacturing BPF and using in-house nitric acid?"
We began manufacturing nitric acid in December 2025, and we anticipate being close to 100% self-sufficient in our requirements. For BPF production using BTC, fluorination has been commissioned but we're still troubleshooting quality. We expect to ramp up from Q1 FY27 onwards.