Credit Rating

15th October, 2026 The Secretary Listing Department BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra - Kurla Complex, Bandra (E) Mumbai – 400 001 Mumbai – 400 051 BSE Code: 500645 NSE Code: DEEPAKFERT Dear Sirs, Sub: Intimation under regulation 30 of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 – Revision in Credit Rating Outlook by ICRA Limited We wish to inform you that the Company has received an intimation from ICRA Limited ("ICRA") regarding the revision in the outlook assigned to the Company's long-term fund- based term loan credit rating. The details are provided below: Name of the Type of Previous Current Rating Remarks agency Instruments Rating ICRA Limited Long Term – [ICRA] AA- [ICRA]AA- Rating reaffirmed and (ICRA) Fund based - (Watch with (Positive) removed from Watch with Term Loan Developing Developing Implications Implications) and Positive outlook assigned. A copy of the detailed Rationale report issued by ICRA in this regard is attached herewith and can also be accessed on the website of ICRA at the link given below: https://www.icra.in/Rationale/ShowRationaleReport?Id=146310 The Date & time of occurrence of the event/information is the receipt of intimation from ICRA i.e. on 15th October 2026 around 14:49 p.m. The above information will also be made available on the website of the Company at www.dfpcl.com. This is for your information and record please. Thanking you, Yours truly, For Deepak Fertilisers And Petrochemicals Corporation Ltd. Subhash Anand President & Chief Financial Officer Encl: As above October 15, 2026 Deepak Fertilisers & Petrochemicals Corporation Limited: Rating reaffirmed and removed from Watch with Developing Implications; Positive outlook assigned Summary of rating action Previous rated Current rated Financial sector Instrument* amount amount Rating action regulator# (Rs. crore) (Rs. crore) [ICRA]AA- (Positive); rating reaffirmed Long term – Fund based - and removed from Watch with 2186.00 2186.00 RBI Term Loan Developing Implications and Positive outlook assigned Total 2186.00 2186.00 *Instrument details are provided in Annexure I #SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments that fall under the regulatory purview of financial sector regulators other than SEBI Rationale While arriving at the rating, ICRA has taken a consolidated view of Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL) and its subsidiaries – Mahadhan AgriTech Limited (MAL), Deepak Mining Solutions Limited (DMSL) and Deepak GlobalChem Pte Ltd (DGPL) – due to their managerial, operational and financial linkages, collectively referred to as the Deepak Group/the consolidated entity. ICRA has reaffirmed the rating assigned to the bank facilities of the Deepak Group, removed the rating from Watch with Developing Implications and assigned a Positive outlook to the long-term rating. The rating action follows the commencement of gas supplies under the contract with Equinor as per the schedule and pricing terms, which has supported stable ammonia production at Performance Chemiserve Limited {PCL, rated [ICRA]AA- (stable)/[ICRA]A1+}. As ammonia is a key input for the Deepak Group for manufacturing nitric acid, technical ammonium nitrate (TAN) and phosphatic fertilisers, the stable ammonia production at PCL lends stability and continuity to the Group’s operations. The gas supplied under the Equinor contract is linked to the Henry Hub (HH) index and, hence, the Group’s landed gas cost remains lower than both oil-indexed linked term LNG as well as prevailing spot LNG prices. This, along with elevated ammonia prices for a major part of Q1 FY2027, which continue to be well above the historiacal average levels, has led to a significant uptick in PCL’s profitability in Q1 FY2027. ICRA expects PCL’s earnings profile to remain healthy in FY2027. The ammonium nitrate operations under DMSL have also witnessed healthy growth, supported by improved TAN realisations and adequate ammonia availability from PCL. The fertiliser segment, however, continues to face elevated phosphoric acid and ammonia costs, with the ammonia being supplied by PCL at prices linked to West Asia prices. The industry has not been able to fully pass on the increase in input costs to the farmers through the existing subsidy levels and retail price hikes. The upcoming announcement on the nutrient based subsidy (NBS) rates will remain a key monitorable for the profitability of the fertilizer segment. On a consolidated basis, the Deepak Group’s profitability is expected to remain healthy in FY2027, supported by favourable pricing under the gas supply arrangement amid elevated end product prices, resulting in margin expansion. The company is in the final stages of commissioning its nitric acid plant at Dahej and the TAN plant at Gopalpur, Odisha, and expects to start production in Q3 FY2027 and gradually ramp up the production in Q4 FY2027. The 376-kilo tonnes per annum (KTPA) TAN project at Gopalpur, with a project cost of around Rs. 2,675 crore, was approximately 95% physically complete as of June 2026 and is targeted for commissioning in Q3 FY2027 . Around Rs. 2,251 crore had been incurred, funded through project debt, equity and capex creditors. Upon commissioning, the Group’s aggregate ammonium nitrate capacity will increase www.icra.in Sensitivity Label : Public Page to around 1.0 MMTPA. The company is also in an advanced stage of commissioning its nitric acid plant, comprising 300 KTPA of weak nitric acid and 150 KTPA of concentrated nitric acid DNA), with a planned capex of ~Rs. 1,983 crore. At present, there are no further time/cost overruns, and a timely completion of the projects and ramp-up of the production without any operational headwinds will remain a key monitorable over the course of H2 FY2027. The ratings continue to factor in the company’s diversified product portfolio comprising phosphatic fertilisers and industrial and mining chemicals. The ratings also factor in the Deepak Group’s strong market position in the mining chemical business, especially in TAN, and the industrial chemicals business, particularly in nitric acid and iso-propyl alcohol (IPA). The ratings also consider the Deepak Group’s strong financial flexibility. The ratings are, however, constrained by the agro-climatic and regulatory risks in the fertiliser business and the vulnerability of the chemical division’s profitability to the inherent price cyclicality along with the volatility in natural gas prices. The ratings are also constrained by the residual project execution risk associated with the large debt-funded capex plans being undertaken by the Group to set up the TAN and nitric acid projects. Around 65% of the concentrated nitric acid capacity has been tied up under a 20-year offtake contract. The project has not witnessed any cost overrun, although its commissioning has been delayed by ~6 months. While the advanced stage of implementation reduces the residual construction risk, timely commissioning, stabilisation and ramp-up of both projects within the envisaged cost will remain key monitorables. The completion of the capex programme and incremental earnings from the new capacities are expected to support an improvement in the Group’s profitability and leverage metrics FY2028 onwards. Further, ICRA notes that Mahadhan AgriTech Limited (MAL) had received assessment and demand orders following the income tax search conducted in November 2018, resulting in aggregate demands of Rs. 580.82 crore, including interest, for AY2015- 16 to AY2019-20. The Commissioner of Income Tax (Appeals) {CIT(A)} had initially decided the matter against MAL, following which the company filed appeals before the Income Tax Appellate Tribunal (ITAT). The appeals relating to AY2016-17 to AY2019-20 [Showing first 8,000 characters — download PDF for full document]