Deepak Fertilisers Share Price Soars After ₹1,200 Cr Petronet LNG Deal: What It Means for Investors in 2025
Deepak Fertilisers and Petrochemicals Corporation Ltd (NSE: DEEPAKFERT) saw its shares surge over 6% on July 15, 2025, following the announcement of a landmark agreement with Petronet LNG Ltd. The five-year contract, valued at ₹1,200 crore (with a possible 20% escalation), is expected to significantly improve Deepak Fertilisers' operational efficiency, margins, and revenue growth.
Shares of the company hit an intraday high of ₹1,658.30 apiece, marking a robust rally and taking its year-to-date gain to over 33%. Investors and analysts alike are now focusing on how this deal and the company’s strategic restructuring will shape its share price target for 2025 and beyond.
📈 What Sparked the Rally in Deepak Fertilisers Share Price?
The stock rally was primarily driven by news of the strategic agreement between Deepak Fertilisers and Petronet LNG. As per the terms, Petronet LNG will regasify around 25 TBTUs of LNG annually, post an initial ramp-up phase, at its Dahej terminal. The regasified LNG will be supplied to the manufacturing facilities of both Deepak Fertilisers and its wholly-owned subsidiary, Performance Chemiserve Ltd (PCL), located in Taloja, Maharashtra.
This move is seen as a critical step in strengthening the company’s Gas-to-Ammonia-to-Chemicals value chain. Not only does it ensure a reliable gas supply for internal consumption, but it also aligns with the company's strategy to boost margin profiles through vertical integration.
📊 Stock Performance and Market Sentiment
At around 11:12 AM on July 15, Deepak Fertilisers was trading at ₹1,617 on the BSE, up 3.07%, while Petronet LNG shares also gained 1.35% to reach ₹307.8. In comparison, the BSE Sensex was up 0.52%, showing a broader market uptrend. The demand for both stocks reflects investor confidence in the long-term commercial and logistical potential of this LNG agreement.
🔍 Strategic Restructuring and Specialty Focus
Earlier this year, Deepak Fertilisers announced a significant restructuring to focus more aggressively on its specialty chemical businesses. This includes mining chemicals, crop nutrition, and industrial chemicals—all aligned with India’s broader infrastructure and agricultural development goals.
CMD Sailesh Mehta stated in a recent interview that the company is doubling down on specialty products, which currently contribute about 22% of total revenues. The aim is to push this share even higher, ultimately expanding operating margins beyond the current 18-19% range. This is expected to play a crucial role in determining the Deepak Fertilisers share price target in 2025.
🏗 Capacity Expansion at Gopalpur Project
Another growth driver for the company is its upcoming Gopalpur project, which will expand production capacity and enable the company to meet increasing domestic demand. The project is a core part of the company's strategy to deliver mid-teens revenue growth and steady margin improvement in the next few years.
With the backing of this LNG deal and upcoming capacity expansions, Deepak Fertilisers is positioning itself as a key player in India's chemicals and fertilizers sector with strong forward visibility.
💡 Analyst View: Why This Deal Matters
According to analysts, this deal not only ensures a steady LNG supply but also helps Deepak Fertilisers gain control over critical raw material logistics and pricing. This will reduce volatility and enhance predictability in its earnings, which is a big positive for long-term investors.
By securing LNG at favorable long-term rates and using Petronet LNG’s regasification infrastructure, the company mitigates risks associated with global gas price fluctuations. This is expected to lead to more consistent EBITDA margins, making the company’s financial profile even stronger.
📌 Deepak Fertilisers Share Price Outlook for 2025
Given the recent momentum, analysts are optimistic about the company’s stock trajectory. With robust tailwinds like the LNG deal, specialty chemicals growth, and capacity expansion, Deepak Fertilisers could be eyeing the next resistance levels in the ₹1,700–₹1,750 range. If market sentiment continues to favor infrastructure and chemical sector stocks, the Deepak Fertilisers share price target for 2025 could be well above ₹1,800.
🧪 About Deepak Fertilisers
Founded in 1979, Deepak Fertilisers and Petrochemicals Corporation Ltd is one of India’s leading chemical manufacturers, supplying products across industrial chemicals, crop nutrition, and mining chemicals. The company plays a critical role in India's pharmaceutical, agriculture, mining, and infrastructure sectors.
Its flagship products include nitric acid, ammonium nitrate, and specialty fertilizers. Through subsidiaries like PCL, the company is also pushing toward higher value-added product lines and sustainable growth models.
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