Deepak Fertilisers gets relief in ₹215 crore tax case; ITAT dismisses department's appeals

Deepak Fertilisers and Petrochemicals Corporation has received relief from the Income Tax Appellate Tribunal , Mumbai, which dismissed appeals filed by the Income Tax Department for six assessment years from 2013-14 to 2018-19. The appeals concerned disputed taxable income of ₹215 crore.
The tribunal's decision upholds the relief granted to the company by the Commissioner of Income Tax , Mumbai, through an order dated January 8, 2026. The company disclosed the development in a regulatory filing on Saturday, November 14, stating that it received an email from the authority at 1:10 pm on November 13.

Six-year tax dispute ends with department's appeals dismissedThe matter relates to an earlier order covering assessment years 2013-14 to 2018-19, against which the Income Tax Department had approached the ITAT after the Commissioner of Income Tax ruled in favour of DFPCL.
The department's appeals have now been dismissed, confirming the relief granted to the company under the January 8 order. DFPCL's appeals partly allowedSeparately, the ITAT allowed appeals filed by DFPCL for assessment years 2015-16 and 2016-17 on certain issues.

However, these appeals were allowed for statistical purposes, according to the company's filing. Revenue rose 10.9% to ₹3,334 crore from ₹3,006 crore in Q2 FY26. Earnings before interest, tax, depreciation and amortisation increased 61.4% to ₹749 crore, compared with ₹464 crore in the year-ago quarter.
EBITDA margin expanded to 22.5% from 15.4% in the corresponding quarter last year. Chairman and Managing Director S. C. Mehta said the company had delivered its best-ever first-half performance despite volatility and supply-chain disruptions arising from the US-Iran conflict.

Mehta attributed the performance to the company's integrated liquefied natural gas -to-ammonia-to-downstream value chain, which he said helps mitigate supply and cost volatility and supports profitability across market cycles. He also pointed to demand from India's mining, crop nutrition and industrial chemicals sectors as key support for the business.
Shares of Deepak Fertilisers and Petrochemicals Corporation ended almost flat at ₹1,260 on Friday, ahead of the announcement. The stock has declined about 11% over the trailing 12-month period.