Balaji Amines Ltd (BAL), a leading manufacturer of aliphatic amines in India, has reaffirmed its revenue target of Rs 3,000 crore by FY27, despite facing industry-wide demand slowdown. The company's Managing Director, D Ram Reddy, expressed confidence in achieving this goal, citing marginal growth in the last quarter and increased volumes in the current quarter.

Q1 FY26 Financial Performance

For the first quarter of FY26, BAL reported:

• Consolidated revenue declined 7% to Rs 367.00 crore from Rs 393.00 crore in Q1 FY25
• Net profit dropped to Rs 36.53 crore from Rs 46.00 crore in Q1 FY25
• EBITDA stood at Rs 64.00 crore, compared to Rs 74.00 crore in Q1 FY25
• EBITDA margin decreased to 17% from 19% in Q1 FY25

Volume Growth and Market Challenges

Despite the revenue decline, BAL saw an increase in volumes:

The company expects a 10-12% volume growth going forward, indicating resilience in the face of market challenges.

Strategic Initiatives and Expansion Plans

BAL is actively pursuing several strategic initiatives to support its growth targets:

1. Anti-dumping Protection: The company has applied for anti-dumping protection on some products to counter Chinese competition.

2. New Plant Commissioning: Two upcoming plants are expected to support growth targets from FY27 onwards.

3. US Market Strategy: US clients have agreed to share the tariff burden, with BAL potentially reducing prices by 2-3% while customers absorb the remaining tariff costs.

4. Expansion Projects:

   • Dimethyl Ether (DME) plant with 100,000 TPA capacity is under execution and expected to be commissioned in FY26.
   • N-Methyl Morpholine (NMM) plant with 5,000 TPA capacity is also under execution, slated for commissioning in FY26.
   • An improved Acetonitrile (ACN) plant is expected to be commissioned in FY27.

5. Subsidiary Expansion: Balaji Speciality Chemicals Limited is investing Rs 750.00 crore in a wide range of new products, including Hydrogen Cyanide (HCN), Sodium Cyanide (NaCN), and Ethylene Diamine Tetra Acetic Acid (EDTA).

6. Solar Power Plant: BAL commissioned an 8 MW DC (6 MW AC) solar power plant in April 2025, which is expected to reduce power costs across all plants substantially.

Market Position and Outlook

Balaji Amines maintains its position as the largest manufacturer of aliphatic amines in India, with a diverse product portfolio of over 40 offerings. The company's focus on high-value derivatives and specialty chemicals, coupled with its strategic expansions, is expected to drive growth despite current market challenges.

D Ram Reddy stated, "We have maintained our EBITDA margins despite challenges including Chinese dumping and tariff volatility. Our strategic initiatives and expansion plans are on track to support our FY27 revenue target."

As of the latest trading session, BAL shares closed 2.66% lower at Rs 1,523.40 on the NSE, reflecting the current market sentiment and industry headwinds. However, the company's long-term growth strategy and expansion plans suggest a potential for recovery and growth in the coming years.

Balaji Amines , a leading manufacturer of aliphatic amines and specialty chemicals, has released its financial results for the first quarter of fiscal year 2026 (Q1FY26), showing mixed performance with revenue growth but margin pressure.

Revenue and Volume Growth

The company reported consolidated revenue of ₹367.00 crore for Q1FY26, marking a 2% increase from ₹361.00 crore in Q4FY25. However, this figure represents a 7% year-on-year decline from ₹393.00 crore in Q1FY25. Total volumes increased to 27,570 MT in Q1FY26 from 25,871 MT in the previous quarter, indicating improved demand.

Product-wise Performance

The volume breakdown for Q1FY26 was as follows:

• Amines: 7,573 MT
• Amines Derivatives: 8,108 MT
• Specialty Chemicals: 11,889 MT

Profitability Under Pressure

Despite the revenue growth, the company's profitability metrics showed signs of pressure:

The company's diluted Earnings Per Share (EPS) for Q1FY26 stood at ₹11.73, compared to ₹12.36 in Q4FY25.

Expansion Projects and Future Outlook

Balaji Amines continues to progress on multiple expansion projects:

1. Dimethyl Ether (DME) Plant: Expected to be commissioned in FY2025-26.
2. N-Methyl Morpholine (NMM) Facility: 5,000 TPA capacity, scheduled for commissioning in FY2025-26.
3. Upgraded Acetonitrile Plant: Planned for commissioning in FY2026-27.

The company's subsidiary, Balaji Speciality Chemicals, has received Mega Project status from the Maharashtra government for its ₹750.00 crore expansion. This project includes products like Hydrogen Cyanide and EDTA, with commissioning planned for FY2026-27.

Sustainable Initiatives

In line with its commitment to sustainability and cost reduction, Balaji Amines commissioned an 8 MW DC (6 MW AC) solar power plant in April 2025. This initiative is expected to substantially reduce power costs across all plants and lower the company's carbon footprint.

Financial Position

The company maintains a zero-debt status on a standalone basis, showcasing its strong financial discipline.

Balaji Amines' management remains focused on its expansion strategy, aiming to strengthen its market position in high-value derivatives and specialty chemicals. The company's ongoing projects and sustainable initiatives are expected to drive long-term growth and operational efficiency.