Deepak Fertilisers and Petrochemicals Corporation Ltd. (DEEPAKFERT) AI Stock Analysis

• Market Cap: ₹109.96B
• Dividend Yield: 0.8%
• Average Volume (3M): 15.02K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.94
• Revenue Growth: 21.68%
• EPS Growth: 45.18%
• Country: IN
• Employees: 995
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 11.20
• Shares Outstanding: 126,237,820
• 10 Day Avg. Volume: 11,293
• 30 Day Avg. Volume: 15,015
• PEG Ratio: 0.14
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 18.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,317.00
• Price Target Upside: 4.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 72.53
• Revenue Forecast (FY): ₹110.61B

• Rating: 64 Neutral
• Price Target: ₹974.00 ▼(-22.80% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is driven primarily by strong financial performance (growth, improving margins, and better cash flow), but it is meaningfully weighed down by weak technicals (price below all key moving averages and negative MACD). Valuation is moderately unattractive at a higher P/E, with only a modest dividend yield providing support.

Positive Factors

Revenue & margin expansion

Consistent revenue growth and expanding gross and net margins indicate durable demand and improved pricing and efficiency across fertiliser and chemical lines. Sustained margin expansion enhances cash conversion and reinvestment capacity, supporting longer‑term profitability and competitive positioning over several months.

Improved cash generation

A material rise in operating cash flow and a return to positive free cash flow demonstrate higher earnings quality and stronger internal funding ability. Better cash generation reduces refinancing needs, supports strategic capex and working capital, and increases resilience to commodity or seasonal cycles over the medium term.

Stronger balance sheet metrics

An improving debt-to-equity ratio alongside a solid equity base and rising ROE indicates strengthening solvency and capital efficiency. This provides financial flexibility to invest in higher-margin specialty products or absorb cyclical pressures, supporting durable operational plans and credit profile stability.

Negative Factors

High leverage vs assets

Total debt remaining high relative to assets elevates financial risk by amplifying earnings volatility and increasing interest and refinancing sensitivity. In adverse cycles or rising rates, leverage could constrain strategic choices, force cost cuts or defer investment, and pressure liquidity over the medium term.

Elevated capital expenditure needs

Sustained high capex requirements can strain free cash flow even with stronger operating cash, forcing trade-offs between growth spending and deleveraging. Persistent capex intensity increases execution and funding risk, potentially delaying balance-sheet repair and limiting flexibility to pursue higher‑margin product shifts.

Net margin gap vs peers

Despite margin improvements, net profitability trails top industry peers, limiting return on capital and the buffer to absorb feedstock cost shocks. This structural margin gap implies the need for further cost, mix or specialty moves to secure sustainable competitive advantage and stronger long‑term returns.

Deepak Fertilisers and Petrochemicals Corporation Ltd. Business Overview & Revenue Model

Company Description

Deepak Fertilisers And Petrochemicals Corporation Limited produces and sells fertilizers and industrial chemicals in India. It operates through Chemicals, Bulk Fertilisers, Realty, and Windmill segments. The Chemicals segment offers ammonia, methanol, dilute nitric acid, concentrated nitric acid, carbon dioxide, technical ammonium nitrate, iso-propyl alcohol, propane, and bulk and speciality chemical. The Bulk Fertilisers segment provides nitro phosphate, mutriate of potash, nitrogen phosphorous potassium variants, water soluble fertilisers, bentonite sulphur, diammonium phosphateAP, ammonium sulphate, mixtures, single super phosphate, sulphur, micronutrients, SSF, and bio fertilisers. The Realty segment is involved in the real estate business. The Windmill segment generates electricity through windmills. It also exports its products to the Middle East, Africa, and southeast Asian countries. The company was incorporated in 1979 and is headquartered in Pune, India.

How the Company Makes Money

DEEPAKFERT primarily makes money by manufacturing and selling fertilisers and chemical products to agricultural customers, industrial customers, and downstream manufacturers. Its revenue model is largely product-led: it earns income from (1) fertiliser sales, where volumes are driven by agricultural demand and channel distribution and where realised prices can be influenced by commodity inputs and, where applicable, regulatory/subsidy frameworks; and (2) industrial chemical sales, where the company supplies chemical intermediates and value-added products to sectors such as industrial processing and infrastructure-linked end markets, earning revenue based on contracted/offtake demand, market-linked pricing, and product mix. Profitability is typically driven by plant utilisation, spread/margins between selling prices and key feedstocks/energy costs (e.g., natural gas and other raw materials), operating efficiency, and the share of higher-margin specialty/value-added products in the portfolio. Specific details on material partnerships or customer concentration are null.

Deepak Fertilisers and Petrochemicals Corporation Ltd. Financial Statement Overview

Summary

Strong revenue growth and improved profitability (better gross and net margins) support a high score. Operating efficiency appears solid (healthy EBIT/EBITDA margins) and cash generation improved with positive free cash flow. The main constraint is balance-sheet leverage risk (high total debt relative to assets) and ongoing high capex needs.

Income Statement

Deepak Fertilisers and Petrochemicals Corporation Ltd. has shown impressive revenue growth with a significant increase from 2024 to 2025. The gross profit margin and net profit margin have improved, indicating better profitability management. EBIT and EBITDA margins are strong, reflecting efficient operations. However, the net profit margin still leaves room for improvement compared to industry leaders.

Balance Sheet

The company's balance sheet shows a solid equity base with an improving debt-to-equity ratio, indicating a stable financial position. Return on equity has increased, showing effective use of shareholder funds. However, the high level of total debt relative to total assets suggests potential leverage risk that needs monitoring.

Cash Flow

The cash flow statement is strong, with a substantial increase in operating cash flow and a return to positive free cash flow in 2025, demonstrating improved cash management. The operating cash flow to net income ratio supports the quality of earnings. However, the company's capital expenditure demands remain high, which could impact future liquidity if not managed properly.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	107.01B	103.55B	86.76B	113.01B	65.69B	58.08B
Gross Profit	31.85B	36.86B	26.34B	24.60B	14.29B	11.72B
EBITDA	20.58B	20.06B	14.09B	22.29B	13.87B	9.67B
Net Income	9.81B	9.34B	4.43B	12.10B	6.78B	4.00B
Balance Sheet
Total Assets	0.00	131.48B	118.30B	114.21B	87.44B	71.61B
Cash, Cash Equivalents and Short-Term Investments	6.27B	6.27B	6.28B	11.08B	11.58B	7.16B
Total Debt	0.00	41.52B	41.49B	36.99B	26.56B	25.93B
Total Liabilities	-62.54B	68.94B	63.84B	62.28B	47.42B	43.61B
Stockholders Equity	62.54B	62.37B	54.08B	50.67B	38.84B	27.03B
Cash Flow
Free Cash Flow	0.00	7.44B	-1.53B	-7.16B	2.21B	10.11B
Operating Cash Flow	0.00	18.80B	7.32B	4.93B	12.11B	12.47B
Investing Cash Flow	0.00	-10.62B	-3.75B	-9.79B	-14.30B	-6.34B
Financing Cash Flow	0.00	-6.89B	-4.10B	6.04B	2.21B	-6.13B

Deepak Fertilisers and Petrochemicals Corporation Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1261.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DEEPAKFERT, the sentiment is Negative. The current price of 1261.7 is above the 20-day moving average (MA) of 955.43, above the 50-day MA of 1042.99, and below the 200-day MA of 1352.39, indicating a bearish trend. The MACD of -39.50 indicates Positive momentum. The RSI at 31.32 is Neutral, neither overbought nor oversold. The STOCH value of 5.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DEEPAKFERT.

Deepak Fertilisers and Petrochemicals Corporation Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹56.48B	12.10	―	3.68%	-7.53%	42.74%
GUJALKALI	65 Neutral	₹45.23B	-46.40	―	3.11%	10.35%	―
INDIAGLYCO	65 Neutral	₹54.85B	23.54	―	0.47%	5.61%	33.63%
DEEPAKFERT	64 Neutral	₹109.96B	28.71	―	0.80%	21.68%	45.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TATACHEM	54 Neutral	₹155.02B	-52.43	―	1.42%	-1.99%	―
DEEPAKNTR	52 Neutral	₹179.65B	59.14	―	0.44%	-7.50%	-37.67%

Deepak Fertilisers and Petrochemicals Corporation Ltd. Corporate Events

Deepak Fertilisers to Contest Rs 26.76 Lakh GST Demand Order

Deepak Fertilisers and Petrochemicals Corporation Ltd. has disclosed that it received a demand order from the Superintendent of CGST & Central Excise, Bharuch, under the Vadodara-II Commissionerate, raising a total claim of Rs 26.76 lakh, comprising Rs 13.38 lakh in tax and an equivalent amount as penalty, with no interest component. The order, which disallows certain input tax credit as ineligible, is not expected to have any material impact on the company’s financials or operations, and the management plans to challenge the demand before an appropriate appellate forum, signalling a contained compliance dispute with limited implications for stakeholders.

Deepak Fertilisers Posts Q3 Earnings Call Audio on Website for Investor Access

Deepak Fertilisers and Petrochemicals Corporation Ltd. has notified the stock exchanges that the audio recording of its earnings conference call held on 30 January 2026, covering financial results for the third quarter and nine months ended 31 December 2025, has been made available on the company’s website. The disclosure, made under SEBI’s Listing Obligations and Disclosure Requirements, underlines the company’s adherence to regulatory norms and enhances transparency for investors and other stakeholders by providing open access to management’s discussion of recent financial performance.

Deepak Fertilisers Subsidiary Sees Rs 382.81 Crore Tax Penalty Dropped

Mahadhan AgriTech Limited, the wholly owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited, has secured relief in income-tax penalty proceedings, with the Commissioner of Income Tax (Appeals), Mumbai, allowing its appeals for assessment years 2016-17 to 2018-19 and dropping penalties totalling Rs 382.81 crore. A separate appeal relating to assessment year 2015-16, involving a penalty of Rs 96.03 crore, remains pending, leaving some residual uncertainty, but the substantial reduction in potential tax liability is a positive development for the group’s balance sheet and provides clarity for investors and other stakeholders on a major contingent financial exposure.

Deepak Fertilisers Confirms SEBI Demat Compliance for December 2025 Quarter

Deepak Fertilisers and Petrochemicals Corporation Ltd. has reported that its share transfer agent, KFin Technologies Ltd., has issued a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The certificate confirms that during the dematerialisation process the required actions—such as timely processing of dematerialisation requests, cancellation of physical certificates, and recording the depository as the registered owner—were completed in accordance with regulatory norms, underscoring the company’s adherence to securities market compliance and providing reassurance to investors and exchanges about the integrity of its share transfer and demat processes.

Deepak Fertilisers Seeks Shareholder Nod via Postal Ballot for Board Appointments and Re-appointments

Deepak Fertilisers and Petrochemicals Corporation Ltd. has initiated a postal ballot process to seek shareholder approval via remote e-voting on a set of special resolutions focused on strengthening its board of directors. The company is proposing the appointment of Dr. Purvi Mehta Bhatt as an independent woman director for a first three-year term and the re-appointment of independent directors Sanjay Gupta, Sitaram Kunte and Terje Bakken for second terms of five years each, moves that underscore an emphasis on continuity, diversity and governance stability. The postal ballot, conducted electronically through KFin Technologies, will run from 31 December 2025 to 29 January 2026, with results to be declared within two working days of the voting period, ensuring shareholders’ participation in key governance decisions and compliance with SEBI and MCA regulations.

Deepak Fertilisers Subsidiary to Acquire Explosives Manufacturer to Boost TAN-Backed Export Growth

Deepak Mining Solutions Ltd., a wholly owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation Ltd., has signed an agreement to acquire 100% of the equity shares of an explosives manufacturing company, subject to completion of certain conditions precedent and successful closing of the transaction. While the name of the target and deal value remain confidential until closure, the acquisition is positioned to bolster exports of value-added explosive products and services that will leverage upcoming Technical Ammonium Nitrate (TAN) capacities at DMSL’s Gopalpur TAN plant, and to support the export of differentiated products to DMSL’s fully owned mining services subsidiary in Australia, signalling a strategic push to deepen its presence in global mining solutions and explosives markets.

Deepak Fertilisers Receives Rs 21.5 Crore Tax Demand, Sees No Immediate Business Impact

Deepak Fertilisers and Petrochemicals Corporation Ltd. has disclosed that it received an income tax demand order from the Central Processing Centre of the Income Tax Department, raising a demand of Rs 21.51 crore under section 143(1) of the Income Tax Act for assessment year 2024-25. The demand arises from an increase in assessed income by about Rs 10.34 crore and the non-grant of tax deducted at source and tax collected at source credits totalling roughly Rs 14.35 crore, though the company notes there is no allegation of any contravention. Deepak Fertilisers said the assessment proceedings for the year are still underway and are expected to be completed by March 31, 2026, and added that it will seek clarification on the differences in business income and take necessary action, indicating no immediate impact on its financial or operational activities at this stage.