Why Deepak Nitrite share price jumped 9% after Q2 results - Profit and other highlights | Check rating, stock returns

Meanwhile, the EBITDA margin expanded significantly to 20.4% from 10.7% a year earlier, indicating a substantial improvement in operating profitability.Separately, Deepak Nitrite announced on September 29 that its material wholly owned subsidiary, Deepak Chem Tech Ltd, had commenced manufacturing operations at its chlorination and specialty chemicals plant in Dahej, Bharuch, Gujarat.The facility, along with its associated utilities and infrastructure, began operations on September 29.

The company had incurred capital expenditure of approximately ₹300 crore on the project by the time manufacturing commenced.Deepak Nitrite share price performanceDeepak Nitrite share price has gained 4.93% over the past week, indicating a recovery in the stock’s near-term performance. However, the stock has remained largely under pressure over the past month, declining 0.76%.Looking at its longer-term performance, Deepak Nitrite shares have declined 10.77% year-to-date (YTD) and 12.75% over the past year.

The stock has also delivered negative returns of 23.75% over three years and 31.93% over five years.Deepak Nitrite share price outlookBrokerage firm Motilal Oswal has given 'sell rating to the Deepak Nitrite stock, saying that revenue for Q2 FY27 stood at ₹3,080 crore, significantly higher than the estimated ₹2,140 crore. Revenue increased 62% year-on-year (YoY) and 19% quarter-on-quarter (QoQ).

Gross margin improved by 730 basis points (bps) YoY to 34.8%, although it declined by 200 bps sequentially.Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.