BASF India Limited , a leading chemical company, has reported a decline in revenue and profit for the first half of the fiscal year 2025-26, while also announcing strategic moves to reshape its business portfolio.

Financial Performance

BASF India's consolidated revenue for April-September 2025 decreased by 4% to Rs 7,920.00 crores, down from Rs 8,215.00 crores in the same period last year. The company's profit before tax (PBT) before exceptional items saw a more significant drop of 27%, falling to Rs 331.00 crores from Rs 454.00 crores in the previous year.

The company attributed the decline in profitability to higher input costs and challenges related to product mix. Despite slightly higher volumes, lower price realization contributed to the overall revenue decrease.

Segment Performance

BASF India's performance varied across its business segments:

The Industrial Solutions and Surface Technologies segments showed growth, while the Agricultural Solutions segment experienced the most significant decline.

Strategic Developments

Agricultural Solutions De-merger

BASF India has announced plans to de-merge its Agricultural Solutions business to unlock shareholder value. The company has incorporated a new entity, BASF Agricultural Solutions India Limited (BASIL), for this purpose. Shareholders will receive one share in BASIL for each share held in BASF India Limited. The de-merger is expected to be completed during the fiscal year 2026-27, subject to regulatory approvals.

Coatings Business Update

The company provided an update on its coatings business, which has been operating under BASF India Coatings Pvt Ltd, a wholly-owned subsidiary, since January 1, 2025. As of March 31, 2025, this business generated sales of Rs 479.60 crore, representing 3.1% of consolidated sales. Globally, BASF plans to reinvest in the coatings business, holding a 40% equity stake in a new Global Coatings Standalone Company under Carlyle.

Operational Highlights

• BASF India continues to focus on innovation, launching new products such as Valexio® Insecticide and Mibelya® Fungicide in its Agricultural Solutions segment.
• The company is expanding its local production capacities, including the expansion of its EPC Plant Extrusion Line and R-102 Vessel Reactivation at its Thane facility.
• BASF India has partnered with Clean Max to procure hybrid solar and wind power for its plants in Gujarat, demonstrating its commitment to sustainable energy.
• The company is actively engaging with key customers and industry associations, participating in events such as the Honda Technology Day and the Indian Chemicals and Petrochemicals Conference.

Looking Ahead

BASF India's management emphasized its continued focus on maintaining safety standards, sustaining profitable growth, controlling working capital, and driving sustainability initiatives. The company also plans to strengthen its talent pipeline, promote diversity and inclusion, and intensify engagement with business partners and suppliers.

As BASF India navigates through challenging market conditions, the planned de-merger of its Agricultural Solutions business and the ongoing evaluation of its coatings business could significantly reshape the company's structure and focus in the coming years.

BASF India Limited has taken a significant step towards sustainable energy sourcing by signing a share purchase agreement to acquire a 26% stake in Clean Max Amalfi Private Limited. This strategic move is aimed at securing renewable power supply for BASF India's manufacturing plants in Dahej and Panoli.

Key Details of the Agreement

Transaction Timeline and Next Steps

The share purchase agreement was signed on November 11, 2025, following the Board of Directors' approval on July 30, 2025. BASF India is set to sign additional agreements, including:

• Shareholders Agreement
• Energy Supply Agreement
• Other ancillary agreements

These agreements are crucial for BASF India to avail benefits available to captive users under the applicable laws.

Closing Conditions

The completion of this transaction is subject to customary conditions precedent, including the receipt of requisite approvals. This approach ensures compliance with all regulatory requirements before the deal is finalized.

Strategic Implications

This acquisition aligns with the growing trend of corporations investing in renewable energy sources. For BASF India, this move secures a supply of green energy for its manufacturing operations and demonstrates its commitment to sustainable practices and reducing its carbon footprint.

The use of wind-solar hybrid power underscores the company's adoption of diverse renewable energy technologies. This strategy may help BASF India mitigate energy costs in the long term while contributing to its environmental sustainability goals.

As the renewable energy sector in India continues to expand, such corporate investments are likely to play a crucial role in driving the transition towards cleaner energy sources and supporting the country's climate objectives.