New Delhi, May 29 -- DeepakNitriteLtd investors seem thrilled about the prospects of Ebitda margin bottoming out, going by its March quarter (Q4FY25) results.

Ebitda margin soared to 14.5%, a staggering rise of 567 basis points (bps) QoQ. The stock increased over 5% to almost Rs.2,110. But note that Q4 had government incentives worth Rs.161 crore included in revenue, which was absent in Q3. Excluding that, Ebitda margin would have been 7.7%, lower than 8.9% in the preceding quarter.

Nonetheless, the benefit of government incentives is likely to continue for the next couple of years at least and would be Rs60-70 crore on a sustained basis.

The phenolics segment, forming nearly 70% of revenue, showed a return to normalized Ebit margin at...