BASF India Q1 Results: Net profit jumps 146% YoY to ₹3,620.5 million
BASF India posted a 146% YoY jump in standalone net profit to ₹3,620.5 million for Q1FY27, aided by strong sales in Materials and Chemicals. Consolidated profit rose 162% to ₹3,602.9 million. The company completed the sale of its coatings business to Carlyle Group and secured shareholder approval for the demerger of its Agricultural Solutions unit.
*this image is generated using AI for illustrative purposes only.
BASF India Limited reported a standalone net profit of ₹3,620.5 million for the quarter ended June 30, 2026, surging 146% year-on-year from ₹1,471.5 million in Q1FY26. The sharp increase was driven by higher revenue from operations, which reached ₹48,374.4 million compared to ₹37,517.8 million in the previous year, alongside a one-time exceptional gain of ₹181.5 million from the sale of its wholly owned subsidiary, BASF India Coatings Private Limited. Consolidated net profit climbed 162% YoY to ₹3,602.9 million, reflecting strong operational performance and the completion of strategic divestitures.
The results were reviewed by Deloitte Haskins & Sells LLP, the statutory auditor, and approved by the Board of Directors at a meeting held on August 4, 2026. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director Alexander Gerding noted that the financial statements were prepared in accordance with Ind AS 34 and other generally accepted accounting principles in India. The board also confirmed that BASF India Coatings Private Limited ceased to be a subsidiary on June 30, 2026, following the transfer of 100% equity shares to Carlyle Group companies for a consideration of ₹2,301.6 million.
Segment Performance
Revenue growth was broad-based, with significant contributions from the Materials, Industrial Solutions, and Chemicals segments. The Materials segment led with revenue of ₹13,429.1 million, up from ₹10,353.8 million in Q1FY26, while delivering a segment result of ₹2,126.9 million. The Chemicals segment saw its revenue more than double to ₹9,281.7 million from ₹4,399.1 million, contributing ₹961.2 million to segment profits. Industrial Solutions revenue rose to ₹9,998.9 million, generating ₹1,249.5 million in segment results. In contrast, the Agricultural Solutions segment, which is seasonal in nature, recorded lower revenue of ₹5,570.3 million compared to ₹6,778.8 million in the prior year.
| Segment | Revenue (₹ mn) | Segment Result (₹ mn) |
|---|---|---|
| Materials | 13,429.1 | 2,126.9 |
| Industrial Solutions | 9,998.9 | 1,249.5 |
| Nutrition & Care | 9,839.7 | 110.6 |
| Chemicals | 9,281.7 | 961.2 |
| Agricultural Solutions | 5,570.3 | 774.9 |
| Others | 254.7 | 18.1 |
Strategic Developments
In addition to the coatings divestiture, BASF India secured shareholder approval for the demerger of its Agricultural Solutions business. At an equity shareholders' meeting on June 24, 2026, shareholders approved the Scheme of Arrangement between BASF India Limited and BASF Agricultural Solutions India Limited with the requisite majority. This follows earlier approvals from the National Company Law Tribunal (NCLT) in April 2026 and no-objection letters from BSE and NSE. The demerger is subject to receipt of further requisite approvals. The company had previously acquired 100% equity interest in BASF Agricultural Solutions India Ltd from its ultimate holding company, BASF SE, in May 2025.
What the Numbers Show
The surge in profitability is largely operational, driven by volume and price realization in high-margin segments like Materials and Chemicals, rather than just the exceptional item. While the ₹181.5 million gain from the coatings sale boosted pre-tax profits, the core profit before exceptional items and tax rose significantly to ₹4,811.1 million from ₹2,005.5 million in Q1FY26. This indicates a fundamental improvement in operating leverage. Furthermore, the consolidation of discontinued operations reveals that the Surface Technologies business, now sold, contributed a small profit before tax of ₹6.9 million in the current quarter, highlighting that the main profit driver remains the continuing operations in chemicals and materials.
Historical Stock Returns for BASF
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.83% | +5.58% | +7.72% | +4.99% | -17.07% | +36.67% |
How will the completed demerger of BASF Agricultural Solutions India Limited impact the valuation multiples and capital allocation strategy for the remaining core chemical and materials businesses?
Given the 146% YoY profit surge, will BASF India increase its dividend payout ratio or reinvest the excess cash flow into capacity expansion in high-growth segments like Materials and Chemicals?
What specific operational synergies or cost-saving measures are expected from the sale of BASF India Coatings Private Limited to the Carlyle Group in the subsequent quarters?
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
