Deepak Fertilisers and Petrochemicals Corporation Ltd has been ordered to pay a compounding fee of ₹3.6 million for regulatory lapses. While the penalty reflects compliance oversight, the company remains financially strong with robust growth and profitability, continuing to lead India’s fertilizer and industrial chemical markets.
Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL), one of India’s leading producers of fertilizers and industrial chemicals, has been directed to pay a total compounding fee of ₹3.6 million. The order underscores regulatory scrutiny on corporate governance and compliance practices in India’s chemical and fertilizer sector.
Key highlights from the announcement:
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The fee relates to compounding of certain regulatory lapses, a mechanism that allows companies to settle non-compliance issues by paying penalties rather than facing prolonged litigation.
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DFPCL, incorporated in 1979, is a major player in fertilizers, mining chemicals, and industrial chemicals, with a market capitalization of over ₹17,000 crore.
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Despite the penalty, the company continues to maintain strong fundamentals, including a return on equity of 15.6% and consistent revenue growth.
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Industry analysts note that such compounding orders are not uncommon and often serve as reminders for listed companies to tighten compliance frameworks.
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The company’s diversified portfolio—from technical ammonium nitrate to specialty fertilizers—positions it well for long-term growth, even as it navigates regulatory challenges.
This development highlights the balancing act between regulatory oversight and corporate performance in India’s industrial sector.
Sources: DFPCL official site, Financial Reports – DFPCL, Screener.in company profile