Earnings Call Transcript Q1 FY 2027

DNL/138/BSE/1179/2026 August 11, 2026 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, MUMBAI – 400 001 Scrip Code: 506401 Dear Sir, Sub: Submission of earnings conference call Transcript We enclose herewith the transcript of the earnings conference call of the Q1 FY 2027 Financial Results held on August 6, 2026 and the same is also available on the website of the Company at the weblink https://www.godeepak.com/financial-result/. Please take the same on your record. Thanking you. Yours faithfully, For DEEPAK NITRITE LIMITED ARVIND BAJPAI Company Secretary Encl.: as above Deepak Nitrite Limited Q1 FY27 Earnings Conference Call August 06, 2026 MANAGEMENT: MR. MAULIK MEHTA – DEPUTY MANAGING DIRECTOR MR. SANJAY UPADHYAY – DIRECTOR (FINANCE) & GROUP MR. SOMSEKHAR NANDA – CFO, DEEPAK NITRITE LIMITED MODERATOR: MR. AAKASH MAJI – IIFL CAPITAL Page 1 of 20 Deepak Nitrite Limited August 06, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Deepak Nitrite’s Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. At the outset, I would like to clarify that certain statements made or discussed on the conference call today may be forward-looking in nature, and a disclaimer to this effect has been included in the investor presentation shared with you earlier. I now hand the conference over to Mr. Aakash Maji. Thank you and over to you, sir. Aakash Maji: Good afternoon everyone and thank you for joining us on Deepak Nitrite's Q1 FY27 Earnings Conference Call. Today, we have with us Mr. Maulik Mehta, Deputy Managing Director; Mr. Sanjay Upadhyay, Director, Finance & Group CFO and Mr. Somsekhar Nanda, CFO of Deepak Nitrite Limited.We will begin the call with opening remarks from the management team, followed by an interactive Q&A session. To begin, Mr. Maulik Mehta will share his view on the operating performance and the growth plans of the company, followed by Mr. Sanjay Upadhyay, who shall take us through the financial and segmental performance. The results documents have been shared with you earlier and have also been posted on the company's website. I now invite Mr. Mehta to share his opening comments. Thank you and over to you, sir. Maulik Mehta: Good afternoon everybody and thank you for joining us. We appreciate your continued interest in Deepak Nitrite. Our investor presentation and financial statements have already been shared, and I trust you've had an opportunity to go through them. I'll begin by sharing our perspective on the quarter, the evolving industry landscape and the strategic progress we have made before Mr. Upadhyay takes you through the financial performance in greater detail. The first quarter of FY27 marks further steps towards Deepak's agility to successfully weather global challenges. While the chemical industry at large continues to navigate price volatility, evolving geopolitical dynamics and an uneven demand recovery, we believe the operating environment is gradually becoming more favorable for manufacturers with integrated and diversified platforms. Increasingly, customers are seeking partners who can offer not just consistency of supply, but also superior quality, technical collaboration and the ability to scale reliably across geographies. This structural shift aligns well with our strategy of building integrated value chains, strengthening domestic manufacturing and reducing supply risks. Over the last 6 decades, Deepak Nitrite has been in a leading position in India's chemical industry, serving customers across more than 50 countries through 7 manufacturing facilities Page 2 of 20 Deepak Nitrite Limited August 06, 2026 across 5 strategic locations. Our diversified portfolio, integrated manufacturing platform and continued investments in specialty chemicals, R&D, digitalization and advanced manufacturing position us well to capture long-term growth opportunities. More importantly, the investments we have made over the past several years are now beginning to translate into stronger operating leverage and improved earnings quality. We are proud to report that Q1 demonstrated an improving trajectory for the company with record Revenues, EBITDA, Profit Before Tax and Profit After Tax. The strong performance reflects the benefits of our manufacturing model. Molecules recently added to the product basket are being passed across for customer approval processes. Newer molecules are also being added for the commercial pipeline. Product out from these projects commissioned in recent past and projects being commissioned in the current quarter and ramping thereafter. Consolidated Revenue from Operations stood at INR 2,592 crore, registering a 35% improvement year-on-year and a 22% growth sequentially. EBITDA reached an all-time high of INR 554 crore, growing 159% year-on-year and 45% sequentially, while EBITDA margins expanded to 21% compared with 11% last year and 18% sequentially. Profit Before Tax increased to INR 468 crore, up 202% year-on-year and 55% quarter-on-quarter. While PAT reached INR 345 crore, registering a 207% year-on-year and 57% sequentially. The quarter benefited not just from improved market conditions, but also from enhanced customer engagement, stronger manufacturing efficiencies, integrated benefits from recently commissioned assets, innovative procurement and continuous cost optimization initiatives. We believe these structural improvements position the business well for sustainable growth in the ensuing periods. Phenolics delivered its highest ever quarterly performance, highlighting the strength of our manufacturing platform and operational excellence. Revenues increased to INR 1,775 crore, a 36% year-on-year and 24% sequential growth, while EBIT reached a record INR 418 crore, registering 254% year-on-year and 46% quarter-on-quarter. This performance was supported by stable plant operations, innovative procurement and engagement with all kinds of customers in different applications. Despite continued volatility in global feedstock markets, initiatives taken at procurement, operations and engagement as well as a strong domestic market position enabled us to maintain reliable customer deliveries, cost competitiveness and healthy profitability. The Advanced Intermediates business also delivered a strong quarter with Revenues rising to INR 804 crore, representing a 33% year-on-year and a 14% sequential growth. EBIT was INR 67 crore, recording an 89% improvement year-on-year and sequentially with 100% improvement. Performance was driven by improving domestic demand, a better product mix and increasing synergies from our recent backward integration and growing contribution from other commissioned manufacturing assets. During the quarter, we also expanded our engagement in specialty chemical applications and strengthened our presence across high-value customer segments. Within AI, pressure of high- cost raw materials remained for certain products. However, customer engagement improved, Page 3 of 20 Deepak Nitrite Limited August 06, 2026 demand strengthened across select export markets and new products continue to gain traction. Our strategy of diversifying products, customers and geographies continues to reduce dependence on any single market or end application while strengthening the resilience of our business. Importantly, growth within AI is now being supported by two complementary drivers: the recovery in demand across our products that earlier experienced softer conditions and capacity- led expansion in established product lines that have continued to witness healthy customer demand. This provides us with greater confidence in the medium-term outlook for the business. One of the most strategic and significant developments over the last few quarters has been the successful completion and stabilization o [Showing first 8,000 characters — download PDF for full document]