Deepak Nitrite Share Price Jump as Subsidiary Commissions New Plant in Gujarat

Deepak Nitrite share price (NSE: DEEPAKNTR) surged in Tuesday’s trade, gaining nearly 6% to hit an intraday high of ₹1,625 on the BSE. Around 11:09 AM, the stock was trading about 4.7% higher at ₹1,607, even as the benchmark Sensex was down 0.4%.

New Plant Commissioned in Gujarat

The rally came after the company announced that its wholly owned subsidiary, Deepak Chem Tech, has commissioned a nitration plant and its second hydrogenation plant at Dahej in Bharuch district, Gujarat, on January 19, 2026.

The new facilities are expected to support capacity expansion and strengthen the company’s chemical manufacturing capabilities.

Fund Infusion in Subsidiary

Earlier this month, on January 9, 2026, Deepak Chem Tech issued and allotted 68 lakh optionally convertible redeemable preference shares (OCRPS) worth ₹68 crore to Deepak Phenolics, another wholly owned subsidiary of Deepak Nitrite.

Deepak Nitrate Financial Performance

In Q2FY26, Deepak Nitrite reported a profit after tax of ₹119 crore, down 39% year-on-year from ₹194 crore. Revenue from operations declined 6% YoY to ₹1,902 crore.

EBITDA fell to ₹224 crore from ₹319 crore, while EBITDA margins narrowed to 12% from 16% a year ago.

Also Read: Best Long-Term Stocks in Jan 2026 – 5yr CAGR Basis!

Business Challenges and Outlook

The company said weaker performance was due to tough operating conditions compared to last year. While the Phenolics segment saw higher volumes and better margins due to lower raw material costs, the advanced intermediates business was impacted by US tariffs and low-priced Chinese imports.

To manage these challenges, the company has focused on new markets, capacity debottlenecking, higher domestic sales, cost optimisation and energy diversification.

Conclusion

While near-term challenges remain, the commissioning of new plants and capacity ramp-up could improve Deepak Nitrite’s performance in the second half, especially if global trade pressures ease.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.