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 , a leading chemical company, has reported a decline in its financial performance for the September quarter while simultaneously announcing plans for sustainable energy initiatives. The company's results reflect the challenges in the current economic environment, but its investment in renewable energy showcases a commitment to long-term sustainability.

Financial Performance

BASF India's financial results for the second quarter show a downturn in key metrics:

The company experienced a 16.4% decline in net profit, dropping to ₹107.00 crore for the quarter. This decrease was accompanied by lower revenue, which stood at ₹404.50 crore, and a reduced EBITDA of ₹16.30 crore.

Renewable Energy Initiative

In a strategic move towards sustainability, BASF India has announced plans to establish a wind-solar hybrid captive power plant. Key details of this initiative include:

• Partnership with Clean Max Enviro Energy Solutions
• Planned capacity of 12.21 MW
• Purpose: To supply renewable energy to manufacturing sites in Gujarat

This investment aligns with the company's commitment to reduce its carbon footprint and embrace cleaner energy sources for its operations.

Corporate Governance Update

The LODR data reveals some significant changes in BASF India's board composition:

• Mr. Marcelo R. Lu (DIN: 10462274) has resigned as Non-Executive and Non-Independent Director, effective November 30, 2025.
• Mr. Andrew Postlethwaite (DIN: 03532678) will be appointed as Non-Executive and Non-Independent Director, effective December 1, 2025, subject to shareholder approval.

Mr. Postlethwaite brings extensive experience in various BASF roles across the Asia-Pacific region, including his current position as Managing Director of BASF South East Asia Pte. Ltd, Singapore.

Outlook

While BASF India faces short-term financial challenges, its investment in renewable energy and strategic board changes indicate a focus on long-term sustainability and governance. The company's ability to navigate the current economic headwinds while investing in future-oriented projects will be crucial for its performance in the coming quarters.