Bhagiradha Chemicals & Industries , a prominent player in the agrochemicals sector, has reported a robust financial performance for the first quarter, along with significant strategic moves to strengthen its subsidiary.

Q1 Financial Highlights

The company announced its unaudited standalone financial results for the quarter ended June 30:

• Revenue from operations increased by 11.7% to ₹123.78 crore, compared to ₹110.78 crore in the same period last year.
• Net profit saw a substantial rise of 14.6% to ₹8.29 crore, up from ₹7.23 crore year-over-year.
• Total income, including other income, stood at ₹127.27 crore, marking a 11.2% increase from ₹114.41 crore in the previous year's corresponding quarter.

Strategic Moves and Corporate Actions

Subsidiary Loan Conversion

In a significant move, Bhagiradha Chemicals converted a loan of ₹367.53 crore extended to its wholly-owned subsidiary, Bheema Fine Chemicals Private Limited, into equity share capital. This strategic decision, approved by the Board of Directors on May 13, resulted in the allotment of 4,08,36,237 equity shares at ₹90 per share to Bhagiradha Chemicals. This conversion is expected to strengthen the capital structure of Bheema Fine Chemicals and support its growth initiatives.

Tax Rate Optimization

The company has adopted a reduced corporate tax rate of 22%, effective from April 1, as permitted by the Taxation Laws (Amendment) Ordinance, 2019. This move led to a remeasurement of deferred tax liabilities, resulting in a reduction of ₹3.08 crore, which has been recognized in the Statement of Profit and Loss for the quarter.

Consolidated Performance

On a consolidated basis, including its wholly-owned subsidiary Bheema Fine Chemicals Private Limited, Bhagiradha Chemicals reported:

• Revenue from operations of ₹123.78 crore
• Net profit of ₹3.98 crore

Preferential Issue and Fund Utilization

The company confirmed that there has been no deviation in the use of proceeds from the preferential issue of convertible warrants. A total of ₹341.18 crore has been raised across multiple tranches, with the funds being utilized as per the stated objectives, including:

1. Funding the capital expenditure for setting up a new manufacturing unit under Bheema Fine Chemicals Private Limited in Kadechur Industrial area, Yadgir district, Karnataka.
2. Allocating ₹21.18 crore towards working capital requirements and preliminary expenses for the subsidiary's project.

Outlook

Bhagiradha Chemicals' strong Q1 performance, coupled with strategic initiatives like the subsidiary loan conversion and tax rate optimization, positions the company for potential growth in the agrochemicals sector. The ongoing investments in manufacturing capabilities through its subsidiary suggest a focus on expanding production capacity and market presence.

Bhagiradha Chemicals & Industries , a key player in the chemical industry, has successfully obtained approval from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for the reclassification of certain individuals from the 'Promoter Group' category to the 'Public' category. This move marks a significant change in the company's shareholding structure.

Reclassification Details

The reclassification affects three individuals:

1. T Kalyan Chakravarthi
2. Potini Vijaya Lakshmi
3. Ramalakshmi Tulasi Padmavathy Kolli

Together, these individuals hold a total of 189,740 shares, representing 0.15% of the company's total shareholding. The breakdown of their holdings is as follows:

Approval Process

Bhagiradha Chemicals initiated this process by submitting an application to both stock exchanges on May 29, 2025. After careful consideration, both the BSE and NSE granted their approval on August 07, 2025. The BSE issued its no-objection letter via document number LIST/COMP/HN/376/2025-26, while the NSE provided its approval through letter number NSE/LIST/COMP/BHAGCHEM/487/2025-2026.

Implications and Compliance

This reclassification is in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As part of the approval, Bhagiradha Chemicals is required to ensure compliance with subsequent relevant disclosures of material events related to this reclassification.

The company's Company Secretary and Compliance Officer, Sharanya M. (M. No: ACS-63438), confirmed the receipt of these no-objection letters from both exchanges in an official communication.

While this reclassification changes the company's shareholding pattern, the immediate impact on operations is likely to be minimal due to the small percentage of shares involved (0.15% of total shareholding).