Deepak Fertilisers Faces Mixed Financial Trends Amidst Strong Cash Flow and Declining Profitability

Deepak Fertilisers & Petrochemicals Corp has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending September 2025. The company's evaluation score has notably decreased, indicating challenges in certain financial metrics despite some strengths.
On the positive side, Deepak Fertilisers reported robust operating cash flow, reaching Rs 1,879.66 crore, and achieved a significant operating profit to interest ratio of 6.20 times. Additionally, net sales for the quarter were strong at Rs 3,005.83 crore, showcasing the company's ability to generate revenue.

However, the company faces hurdles as well. Profit after tax (PAT) fell to Rs 213.20 crore, marking a decline of 13.1% compared to the previous four-quarter average. The debtors turnover ratio is at a low of 0.64 times, and the profit before depreciation, interest, and taxes (PBDIT) is at its lowest for the quarter at Rs 463.64 crore. Furthermore, the operating profit to net sales ratio stands at 15.42%, indicating potential inefficiencies.

In terms of market performance, Deepak Fertilisers has shown varied returns compared to the Sensex. While the stock has experienced a decline over the past week and month, it has outperformed the index year-to-date and over the longer term, particularly in the five and ten-year periods. This contrast highlights the company's resilience in a challenging market environment.