Balaji Amines shares nosedive nearly 8%; here is why

On a consolidated basis, Balaji Amines reported a total income of ₹367 crore, down 6.6% from ₹393 crore registered in the year-ago period.

Its operating profit, or EBITDA (earnings before interest, taxes, depreciation, and amortisation), slipped to ₹64 crore, down 13.5% from ₹74 crore logged in the corresponding quarter of the previous fiscal year.

EBITDA margin dropped 200 basis points (bps) to 17% from 19%.

Profit after tax (PAT) came in at ₹37 crore, down 19.56% from the ₹46 crore seen in Q1 FY25.

Sales volume (in million tonnes) stood at 27,570 against 28,071 in the year-ago period.

In its press release, the company said on a standalone basis, it is a zero-debt company.

Update on New Projects Commissioned and New Proposed Products/Projects

• Dimethyl Ether (DME): The project for the manufacture of DME is under execution at Unit-IV. The plant is expected to be commissioned during FY 2025-26. This has an application in the aerosol industry apart from using it as a replacement for LPG for industrial and commercial usage.

• N-Methyl Morpholine (NMM): 5000 TPA is under execution and expected to be commissioned during the FY 2025-26.

• Acetonitrile: The improvised process-based ACN plan is under execution; the same is expected to be commissioned during FY 2026-27.

All the above projects would be completed as planned with the internal accruals.

Expansion details

Balaji Amines said investment is being made for a wide range of products, including Hydrogen Cyanide (HCN), Sodium Cyanide (NaCN) 30% (Solution), Sodium Cyanide (NaCN) 100% (Solid), Ethylene Diamine Tetra Acetic Acid (EDTA), and Ethylene Diamine Tetra Acetic Acid Disodium Salt (EDTA-2Na).

Notably, "the Industries, Energy, and Labour Department, Government of Maharashtra, has granted Mega Project status to our Expansion Project for Balaji Speciality Chemicals under the Packaged Scheme of Incentives (PSI), 2019, with a proposed investment of ₹750 crore in a phased manner," the release said.

The Unit-1 Brownfieldproject for EDA-based products is progressing as per the plan; the plant will be commissioned during Q1 of FY 2026-27.

The Unit-2 Greenfield Project for setting up HCN, NaCN, and EDTA plants at MIDC Chincholi is progressing as per the plan, and most of the critical equipment is already at the site, and installation works are going on at a brisk pace. As planned, the plants will be commissioned during the next FY 2026-27, it said.

Management Commentary

D. Ram Reddy, Managing Director, commented, “During Q1 FY26, our financial and business performance remained stable, supported by a disciplined working model with stable commodity prices. As volume uptake gradually improves, we anticipate EBITDA and PAT margins to expand, in line with the industry recovery.

The MD further said that with the present global and domestic scenario, the utilisation of expanded capacities may be impacted in the coming quarters until the basic contribution for our products comes through.

Reddy added, "Looking ahead, we maintain a stable outlook for short-term opportunities, anticipating growth and an increased market-driven balanced approach for the medium to long term with better prospects. As our inherent strengths and competencies position us as a leading force in Amines and Specialty Chemicals, helping us navigate market dynamics and advance towards greater excellence.”

About Balaji Amines Ltd (BAL)

Balaji Amines Ltd. (BAL), set up in 1988, is a leading manufacturer of aliphatic amines in India. Broadly, the company is specialised in manufacturing methyl amines, ethyl amines, derivatives of aliphatic amines, and speciality chemicals. Its business is broadly classified into three segments—amines, speciality chemicals, and derivatives.

BAL commenced manufacturing of methylamines in 1990 and later added facilities for ethylamines and other derivatives of methylamines and ethylamines.