BASF India , a leading chemical company, has reported a decline in sales and profit for the first half of the fiscal year 2026, amid challenging market conditions. The company also provided updates on its ongoing strategic initiatives, including business demergers and capacity expansions.

Financial Performance

BASF India's consolidated sales fell by 4% to Rs 7,920.00 crores in the six months ending September 2025. The company's profit before tax (PBT) declined more significantly, dropping by 27% compared to the same period last year. This decrease was attributed to higher input costs and an unfavorable product mix.

Segment Performance

The company's performance varied across different business segments:

Strategic Initiatives

1. Agricultural Solutions Demerger: BASF India is proceeding with the demerger of its agricultural solutions business. The new company, BASF Agricultural Solutions India Limited, has been incorporated. Shareholders will receive a one-to-one share entitlement ratio. The demerger is expected to be completed during the financial year 2026-27.

2. Global Coatings Business Transaction: BASF and Carlyle have reached a binding transaction agreement on the coatings business to create a leading standalone company. Globally, BASF will reinvest in the coatings business, holding a 40% equity stake in the new global coating standalone company under Carlyle.

3. Capacity Expansion:

   • The company is expanding its Cellesto (microcellular polyurethane) production capacity, with a new facility expected to be commissioned in the second half of 2026.
   • BASF India is also expanding its engineering plastics compounding extrusion line, increasing capacity by 80%.

4. Sustainability Initiatives: The company has signed a hybrid solar and wind power captive agreement with Clean Max, which will take the energy consumption at its two Gujarat sites (Dahej and Panoli) to above 80% green energy.

Market Outlook

Alexander Gerding, Managing Director of BASF India, commented on the market conditions: "The overcapacities that have been put in China are clearly visible... Even going into 2026, unless there's something massive changing there, I think that will continue to be a difficult element on the upstream chemicals pricing situation in the industry in India."

Despite these challenges, the company remains cautiously optimistic about its long-term prospects in India, citing the country's strong volume growth momentum driven by domestic consumption and rising disposable income.

BASF India continues to focus on operational efficiencies, cost management, and working capital optimization to navigate the current market conditions while positioning itself for future growth opportunities in the Indian market.

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.