Deepak Nitrite Share Price Hits Lower Circuit; Q3 FY25 Net Profit Drops Over 50% YoY

Deepak Nitrite Limited (DNL) reported a sharp 51.5% year-on-year (YoY) decline in net profit for Q3 FY25, which stood at ₹98 crore, compared to ₹202 crore during the same period last year. The decline was mainly due to lower sales and a notable drop in operating margins.

Revenue decreased by 5.3% YoY, amounting to ₹1,903.4 crore, down from ₹2,009.2 crore, reflecting weaker demand in key segments.

EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) also saw a significant 44.7% YoY fall to ₹168.5 crore, compared to ₹304.6 crore in Q3 FY24, impacted by higher input costs and reduced realizations.

Deepak Nitrite- Chemical Manufacturer Faces Margin Pressure

Operating margins narrowed sharply to 8.9% from 15.2% in the same quarter last year, reflecting cost pressures and decreased pricing power. These results are in line with the broader challenges facing the chemical industry, with weak demand from end-user sectors such as paints, cosmetics, and pharmaceuticals.

Deepak Nitrite Limited is a prominent Indian chemical manufacturer, producing intermediates for industries such as agrochemicals, paints, cosmetics, and pharmaceuticals. The company has been facing margin pressures due to rising raw material costs and slower recovery in key sectors.

Share Price Performance

Deepak Nitrite’s share price touched a lower circuit at ₹2,013.15 at 9:30 AM on February 14, 2025, marking its new 52-week low. The stock has been under pressure due to weak financial results and challenging market conditions.

At 9:45 AM Deepak Nitrite’s share price traded at ₹223.80, down 10%, from the previous close. The stock opened at ₹2,050.10 and reached a low of ₹2,014.45.

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