Balaji Amines Reports Mixed Q2 Results: Profit Dips, EBITDA Margin Improves Slightly

Balaji Amines , a leading manufacturer of specialty chemicals, has reported mixed financial results for the second quarter. The company's performance shows a decline in profit and revenue, but with a marginal improvement in EBITDA margin.

Financial Highlights

Consolidated net profit for Q2 stood at ₹346.00 million, down from ₹410.00 million in the same period last year.
Revenue decreased to ₹3.40 billion from ₹3.50 billion year-over-year.
EBITDA margin improved slightly to 17.56% from 17.49% in the previous year.
Absolute EBITDA declined to ₹598.00 million from ₹607.00 million compared to the previous year.

Segment Performance

The company's financial results are divided into two main segments:

Amines & Speciality Chemicals
Hotel Division

Amines & Speciality Chemicals Segment

This segment, which forms the core of Balaji Amines' business, reported the following results for Q2:

Metric	Amount (₹ million)
Revenue	34,106.70
Profit before interest and tax	5,055.01

Hotel Division

The Hotel Division, a smaller segment of the company's operations, reported:

Metric	Amount (₹ million)
Revenue	724.84
Profit before interest and tax	97.61

Balance Sheet Overview

As of September 30, Balaji Amines' consolidated balance sheet shows:

Item	Amount (₹ million)
Total Assets	233,145.99
Total Equity	205,636.08
Current Liabilities	16,421.13

Conclusion

Balaji Amines' Q2 results present a mixed picture, with declines in revenue and profit offset by a marginal improvement in EBITDA margin. The company's performance in the coming quarters will be crucial to determine if this is a temporary setback or indicative of broader market challenges in the specialty chemicals sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.62%	-7.56%	-13.99%	-17.36%	-39.47%	+25.30%

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:

Category	Volume (MT)
Total volumes Q1 FY26	27,570
Total volumes Q4 FY25	25,871
Amines	7,573
Amines Derivatives	8,108
Specialty Chemicals	11,889

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:

Anti-dumping Protection: The company has applied for anti-dumping protection on some products to counter Chinese competition.
New Plant Commissioning: Two upcoming plants are expected to support growth targets from FY27 onwards.
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.
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.
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).
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.