Operating EBITDA increased 72% YoY to Rs 486 crore in Q3 FY25. EBITDA margin improved by 362 bps to 19% in Q3 FY25 as against 15% in Q3 FY24.

In Mining Chemical, the company’s overall sales volume surged by 19% (YoY) reaching 129 KMT compared to 108 KMT in Q3 FY24. Additionally, sales of the company’s premium product, LDAN, grew by 10% YoY in Q3 FY25.

The company said the growth momentum of mining chemicals is expected to strengthen in Q4FY25, which traditionally marks the peak production period for mining and infrastructure activities. This surge is anticipated to drive higher demand for explosives in these sectors, positively impacting the demand for all Technical Ammonium Nitrate (TAN) products. Additionally, coal, cement, and steel production in India saw a 5%-8% year-over-year increase in Q3 FY25, further supporting the optimistic outlook for these key industries.

In industrial chemicals, nitric acid volumes were up by 4% on a YoY basis in Q3 FY25.

Isopropyl Alcohol (IPA) volumes advanced 36% YoY despite global volatility, mainly driven by growth in the pharma sector, which is growing in double digits.

On the outlook front, the company said that the demand and margins for nitric acid is expected to remain stable. However, short-term disruption occurred by the influx of cheap Chinese nitroaromatics, which has affected our downstream acid customers. On a positive note, propylene-based IPA margins are projected to gradually increase, driven by the AntiDumping Duty (ADD) on IPA and the narrowing Phenol-Benzene spread

In the crop nutrition business (Fertilisers), sales volume of manufactured bulk fertilizer achieved robust sales of 231 KMT, marking a 64% year-over-year increase.

The company’s flagship products, Smartek and Croptek, saw exceptional sales growth, with volumes rising by 186% and 56%, respectively. This was driven by the successful go-to-market strategy and strong demand-generation efforts. Both products focus on nutrient-unlocking technology to boost yield per acre.

Sailesh C. Mehta, chairman & managing director, said, “India faced a slightly slower start to the year, but with the government’s ongoing focus on investment-led growth and strong structural drivers, the management remains confident about the future of the chemical and fertilizer industries.

The demand drivers remain robust, with clear undercurrents emerging from India’s increasing needs for coal for power generation, limestone for cement, and infrastructure development—all of which provide strong tailwinds for the company’s Mining Chemicals business.

Likewise, the rising income levels and shifting food consumption towards more fruits and vegetables are perfectly aligning with the growth of the company’s crop nutrition business. Additionally, the China Plus One strategy and the growing demand for specialty chemicals are driving growth in the industrial chemicals business.”

Deepak Fertilisers and Petrochemicals Corporation is a manufacturer of fertilizers and chemicals.