Germany-based BASF has reclaimed the number one position in the ICIS Top 100 Chemical Companies ranking, reporting $70.0 billion in sales for 2025.

The annual ranking highlights a challenging year for the global chemical sector, where top producers faced significant headwinds despite maintaining substantial revenue volumes.

Ranking Highlights

Sinopec of China held the second position with $66.3 billion in sales. US-based ExxonMobil followed at third with $53.4 billion, ahead of PetroChina ($42.1 billion) and Dow ($40.0 billion).

China-based companies dominated the upper echelon of the list, comprising four of the Top 10 firms. This outpaced US-based producers (three), European firms (two), and Middle Eastern entities (one).

Currency conversions for the ranking were based on year-end 2025 exchange rates.

What the Numbers Show

The divergence between revenue stability and profit collapse defines the 2025 performance for the sector. While total sales for the Top 100 declined by a modest 4.6%, operating profits plunged 47.3% and net profits cratered 81.9% compared to the previous year.

This sharp compression indicates that pricing power eroded significantly across the board. The data suggests that volume or mix shifts were insufficient to offset margin destruction, pointing to intense competitive pressure rather than a simple demand shortfall.

Market Outlook

Joseph Chang, global editor of ICIS Chemical Business, identified 2025 as likely the cycle bottom for earnings. He projected a meaningful margin recovery in 2026, driven by supply shortages stemming from the Middle East conflict affecting both chemicals and feedstocks.

Chang noted that petrochemical overcapacity, led by Chinese expansions, combined with weak demand in housing, automotive, and durable goods sectors, depressed prices and margins throughout 2025.

BASF India Limited delivered a robust start to FY27, with profit before tax and before exceptional items surging 166% year-on-year in Q1 to ₹499 crore. Revenue for the quarter rose 29% to ₹4,998 crore, reflecting strong volume growth and better price realization compared to the same period last year. This performance marks a significant turnaround from the previous fiscal year, where profitability was pressured by rising input costs and unfavorable product mix.

For the full fiscal year ended March 31, 2026 (FY26), the company reported total revenue of ₹15,539 crore, a 2% increase over the prior year. However, profit before tax and before exceptional items declined 9% to ₹564 crore from ₹617 crore in FY25. The margin compression was primarily attributed to higher raw material costs and a shift in product mix, particularly during the final quarter of the fiscal year.

Strategic Portfolio Updates

The company completed two major structural changes during the period. BASF India transferred its 100% stake in BASF India Coatings to Carlyle Group on June 30, 2026, receiving proceeds of approximately ₹230 crore. The business now operates under the Surventis brand.

Additionally, shareholders approved the demerger of the agricultural solutions business with a 99.99% majority vote in June 2026. The National Company Law Tribunal (NCLT) approval is expected by year-end, with the new entity, BASF Agricultural Solutions India Limited (BASIL), targeting listing on Indian stock exchanges in the first half of 2027. Existing shareholders will receive shares in BASIL on a one-to-one basis.

What the Numbers Show

The divergence between FY26 volume growth and revenue growth highlights significant pricing pressure. While volumes increased by 5.9%, price realization fell by 4.6%, resulting in only a 1.3% overall revenue growth (reported as 2% in consolidated figures). This indicates that despite operational efficiency in driving sales volume, the company faced substantial headwinds in passing on input cost increases to customers during FY26. The Q1FY27 recovery suggests these pricing pressures have eased or been successfully managed in the current quarter.

Operational & Investment Highlights

BASF India continues to invest in capacity expansion across key segments:

• Cellasto Business: The expansion at the Dahej site, driven by automotive demand, was completed in May 2026. It is currently in the final commissioning phase and expected to go live by end-2026, ahead of schedule and under budget.
• Dispersion Facility: A new production line at Mangalore broke ground in February 2026 and is expected to be operational by end-2027. This will support demand in paints, construction chemicals, and paper applications.

The company maintains a strong safety record, with no high-severity incidents in FY26. Both Thane and Panoli sites achieved GREEN ratings in responsible care audits. Sustainability initiatives include a partnership with Clean Max to increase renewable energy usage across manufacturing sites to 75-80%.

Financial Position & Dividend

As of March 31, 2026, BASF India held a cash balance of ₹869 crore, up from ₹763 crore in the previous year. The Board has recommended a dividend payout of 250%, or ₹25 per equity share. Capital expenditure for FY26 stood at ₹213 crore, supporting ongoing projects at Dahej and Mangalore.

For FY26, the company recorded export sales of approximately ₹403 crore, representing 2-2.5% of total revenue. Research and development expenditure for FY26 was ₹47.8 million.