Deepak Nitrite Arm Begins Operations at ₹85 Crore Manufacturing Facility in Dahej

20 Jan 2026 , 10:24 AM

Deepak Chem Tech Limited, a wholly-owned subsidiary of the Deepak Nitrite Limited has successfully commissioned its nitration and second hydrogenation manufacturing facility at Dahej in Bharuch district of Gujarat.

The company confirmed that the commissioning of the plant was completed on January 11, 2020, marking a key milestone in its chemical manufacturing expansion plans.

The total capital expenditure incurred for setting up the Dahej facility stood at approximately ₹85 crore as of the commissioning date. The new plant strengthens the group’s downstream chemical capabilities and supports long-term capacity creation in value-added chemical intermediates.

During the quarter ended September 30, 2025, Deepak Nitrite reported a sharp decline in consolidated financial performance amid challenging market conditions.

Consolidated net profit for Q2 declined nearly 39 percent year on year to ₹118.7 crore, compared with ₹194.2 crore recorded in the corresponding quarter of the previous year.

The drop in profitability was primarily attributed to elevated raw material costs, pricing pressure, and subdued demand across select chemical segments. Consolidated revenue for the quarter fell 6.4 percent year on year to ₹1,901.9 crore, down from ₹2,032 crore in the same period last year.

Standalone revenue from operations increased to ₹615.92 crore for the quarter ended September 30, 2025, compared with ₹604.70 crore in the year-ago period. Profit before tax on a standalone basis declined to ₹119.09 crore from ₹158.34 crore reported in the same quarter last year.

However, standalone profit before tax improved significantly on a sequential basis, rising from ₹40.93 crore recorded in the previous quarter. For the half-year ended September 30, 2025, the company reported total income of ₹1,335.47 crore, compared with ₹1,443.80 crore in the corresponding period of the previous financial year. Profit before tax for the first half of FY26 stood at ₹160.02 crore, down from ₹243.38 crore reported in the same period last year.

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