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

• Market Cap: ₹133.19B
• Dividend Yield: 0.8%
• Average Volume (3M): 15.02K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.00
• Revenue Growth: 21.68%
• EPS Growth: 45.18%
• Country: IN
• Employees: 995
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 12.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹1,118.00 ▼(-11.39% Downside)

Deepak Fertilisers and Petrochemicals Corporation Ltd. shows strong financial performance, which is the most significant factor in its overall score. However, the technical analysis indicates bearish momentum, and the valuation is only moderately attractive. These factors collectively contribute to a moderate overall stock score.

Positive Factors

Revenue Growth Trend

Sustained ~15% revenue growth demonstrates expanding demand and successful commercial execution across cycles. Over 2–6 months this trend supports capacity utilization, provides scope for scale-driven margin improvement, and underpins cash flow resilience versus peers.

Improved Cash Generation

A meaningful uplift in operating cash flow and return to positive free cash flow indicate higher quality earnings and stronger internal funding. This durable improvement boosts ability to fund capex, repay debt and invest in higher‑margin specialties without relying on external financing.

Diversified Product Mix

A multi‑segment business (fertilisers, industrial chemicals, specialty products) provides structural diversification across agricultural and industrial end markets. This reduces single‑market exposure, supports cross‑cycle revenue stability, and enables margin uplift from higher‑value specialties.

Negative Factors

Elevated Leverage and Capex Needs

Relatively high debt levels combined with ongoing capital expenditure needs constrain financial flexibility. Over several months this raises refinancing and liquidity risk, limits capacity to accelerate deleveraging, and could pressure investment or dividend policy if cash flow weakens.

Net Margin Below Industry Leaders

Despite margin gains, trailing net profit margins lag best‑in‑class peers, signaling limited pricing power or higher cost structure. Structurally, this constrains excess cash generation and returns unless product mix or cost competitiveness materially improve over the medium term.

Feedstock and Regulatory Sensitivity

Heavy reliance on commodity feedstocks (e.g., natural gas) and exposure to fertilizer subsidy/regulatory frameworks creates persistent margin and volume risk. Policy shifts or sustained commodity price moves can structurally impair profitability and cash generation over months.

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 generates revenue primarily through the sale of its fertilizers and petrochemical products. The company's main revenue streams include the production and marketing of urea and complex fertilizers, which are essential for agricultural productivity. Additionally, it earns income from the sale of various petrochemical products, including methanol and industrial chemicals, which are used across multiple industries. The company benefits from significant partnerships with agricultural cooperatives and government programs aimed at enhancing food security, which helps secure a steady demand for its fertilizer products. Furthermore, DEEPAKFERT's focus on research and development enables it to innovate and diversify its product range, thereby capturing new market opportunities and enhancing its earnings potential.

Deepak Fertilisers and Petrochemicals Corporation Ltd. Financial Statement Overview

Summary

Deepak Fertilisers and Petrochemicals Corporation Ltd. demonstrates strong financial health with robust revenue growth and improved profitability metrics. The balance sheet is stable, and cash flows are on a positive trajectory, though high debt levels and capital expenditure demands require monitoring.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• STOCH: Neutral

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 1187.32, above the 50-day MA of 1242.64, and below the 200-day MA of 1410.73, indicating a bearish trend. The MACD of -38.09 indicates Positive momentum. The RSI at 25.98 is Positive, neither overbought nor oversold. The STOCH value of 29.61 is Neutral, 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	₹68.54B	10.83	―	3.68%	-7.53%	42.74%
INDIAGLYCO	65 Neutral	₹58.82B	20.51	―	0.47%	5.61%	33.63%
DEEPAKFERT	62 Neutral	₹133.19B	15.98	―	0.80%	21.68%	45.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GUJALKALI	59 Neutral	₹33.48B	22,066.18	―	3.11%	10.35%	―
TATACHEM	54 Neutral	₹190.12B	83.77	―	1.42%	-1.99%	―
DEEPAKNTR	52 Neutral	₹223.91B	40.60	―	0.44%	-7.50%	-37.67%

Deepak Fertilisers and Petrochemicals Corporation Ltd. Corporate Events

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.

Deepak Fertilisers’ Subsidiary Invests in Agritech Growth

Deepak Fertilisers and Petrochemicals Corporation Ltd. announced that its wholly owned subsidiary, Mahadhan AgriTech Limited, has approved an investment of up to Rs.75 Crores in the SOA FUND – SERIES I, an alternative investment fund. This strategic move aligns with Mahadhan AgriTech’s goal to become a comprehensive, farmer-centric agritech entity, leveraging the fund to access innovative agri-business models and future growth opportunities with reduced capital risk. The investment is expected to yield both financial returns and strategic value, enhancing the company’s industry positioning.