Bharat Rasayan Reports Decline in Q2 Financial Performance

Bharat Rasayan Limited (BRL), a leading agrochemical manufacturer, has reported a significant decline in its financial performance for the second quarter. The company's results reflect challenges in the agrochemical sector, with decreases observed across key financial metrics.

Financial Highlights

Metric (in ₹ crore)	Q2 FY26	Q2 FY25	YoY Change
Revenue	285.96	327.87	-12.78%
EBITDA	33.07	54.79	-39.64%
Net Profit	26.16	40.15	-34.84%
EBITDA Margin	11.56%	16.71%	-515 bps

Revenue and Profitability

Bharat Rasayan's revenue for the quarter decreased to ₹285.96 crore, down from ₹327.87 crore in the same period last year, marking a 12.78% year-on-year decline. This reduction in top-line performance suggests challenging market conditions for the company's products.

The company's profitability saw a more pronounced decline. Net profit for the quarter stood at ₹26.16 crore, compared to ₹40.15 crore in the same quarter of the previous year, representing a 34.84% decrease. This sharp reduction in profit indicates pressure on the company's margins and operational efficiency.

Operational Performance

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter was ₹33.07 crore, down from ₹54.79 crore in the corresponding quarter of the previous year, showing a substantial decrease of 39.64%. This decline in EBITDA outpaced the revenue decline, suggesting increased operational costs or pricing pressures.

The EBITDA margin contracted significantly to 11.56% from 16.71% in the same quarter last year, a decrease of 515 basis points. This margin compression indicates challenges in maintaining profitability amid potentially rising input costs or competitive pricing environment.

Sector Outlook

The financial results suggest that Bharat Rasayan may be facing headwinds in the agrochemical sector. These could include factors such as fluctuating raw material prices, competitive pressures, or changes in demand patterns for agricultural inputs.

Looking Ahead

As Bharat Rasayan navigates through these challenging times, investors and market observers will be keen to see how the company adapts its strategies to improve profitability and regain growth momentum. The agrochemical sector's performance in the coming quarters will be crucial in determining the company's trajectory for the remainder of the fiscal year.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.76%	-4.65%	+0.41%	+4.94%	-10.29%	+16.04%

Bharat Rasayan Limited, a prominent player in the chemical industry, has unveiled significant corporate actions aimed at enhancing shareholder value and improving stock liquidity. The company's board has recommended a stock split and a bonus share issue, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM) scheduled for November 19, 2025.

Stock Split Details

The board has proposed a sub-division of the company's equity shares, splitting each share with a face value of ₹10 into two shares with a face value of ₹5 each. This move is expected to make the stock more accessible to a broader range of investors, potentially increasing market participation and liquidity.

Bonus Share Issue

In addition to the stock split, Bharat Rasayan has announced a bonus share issue in the ratio of 1:1. This means shareholders will receive one new fully paid bonus share of ₹5 for every existing share held.

Key Financial Implications

The bonus issue will lead to a capitalization of ₹4.15 crore from the company's free reserves and capital redemption reserves. This strategic decision will result in significant changes to the company's share capital structure:

Particulars	Pre-Corporate Action	Post-Corporate Action
Face Value per Share	₹10	₹5
Number of Shares	41,55,268	1,66,21,072
Paid-up Capital	₹4.15 crore	₹8.31 crore

Rationale Behind the Move

The company stated that these corporate actions are aimed at:

Encouraging wider participation of small investors
Enhancing the liquidity of the company's shares in the capital market
Expanding the retail shareholder base

EGM and Implementation Timeline

Shareholders will vote on these proposals at the EGM on November 19, 2025. The company has set November 12, 2025, as the record date for determining shareholder eligibility for e-voting and attendance at the EGM.

Implications for Shareholders

Existing shareholders will see their number of shares double due to the stock split
They will receive additional shares through the bonus issue, effectively tripling their shareholding
The overall value of their holding is expected to remain the same, barring market reactions

Market Impact

While the immediate market reaction remains to be seen, such corporate actions often lead to increased trading volumes and potentially wider retail participation. However, investors should note that the fundamental value of their investment doesn't change due to these corporate actions alone.

Bharat Rasayan's move aligns with recent trends in the Indian market, where companies have been undertaking similar actions to improve stock liquidity and reward shareholders. As always, investors are advised to consider their investment goals and consult financial advisors before making any investment decisions based on these corporate actions.