Balaji Amines Limited, a prominent chemical manufacturing company, faces allegations of violating the Drugs and Cosmetics Act, 1940. The company and all its directors have been summoned to appear before the Court of Honourable Additional Principal Judge in Ahmedabad on December 4, 2025.

Legal Proceedings

The court summons, issued on November 11, 2025, and received by Balaji Amines on November 23, 2025, alleges violations under multiple sections of the Drugs and Cosmetics Act, 1940. The specific sections cited include:

• Section 16(1)(a)
• Section 18(a)(i)
• Section 18(c)
• Section 34
• Section 27(b)(ii)
• Section 27(d)

These sections typically deal with various aspects of drug manufacturing, distribution, and quality control.

Company's Response

In response to the summons, Balaji Amines has stated:

1. The company and all its directors have been directed to appear either in person or through a pleader on the specified date.
2. There is no material impact on its financials, operations, or other activities as a result of this legal action.
3. No additional documents such as notices, complaints, or copies of petitions have been received beyond the summons itself.

Disclosure Details

As per regulatory requirements, Balaji Amines has disclosed the following information:

Investor Considerations

While Balaji Amines maintains that there is no material impact on its operations or financials, investors should monitor the developments of this case. Legal proceedings may potentially lead to reputational damage, fines, or operational changes, even if the immediate financial impact is not apparent.

Stakeholders are advised to follow further disclosures from Balaji Amines and any updates regarding the court proceedings scheduled for December 4, 2025.

It's important to note that at this stage, these are allegations, and the outcome of the legal process is yet to be determined. The company's response and the court's decision will be crucial in assessing any long-term implications for Balaji Amines.

Balaji Amines , a leading manufacturer of specialty chemicals, has released its financial results for the second quarter of fiscal year 2026, showcasing resilience in the face of market challenges.

Financial Highlights

Despite a 4.7% quarter-on-quarter decline in revenue, Balaji Amines managed to improve its EBITDA margin from 17.00% to 19.00%, demonstrating effective cost management and operational efficiency.

Operational Performance

The company reported total volumes of 26,165 metric tons for Q2 FY26, which remained broadly steady year-on-year. The breakdown of volumes across product categories is as follows:

• Amines: 7,685 metric tons
• Amines Derivatives: 8,374 metric tons
• Specialty Chemicals: 10,107 metric tons

Strategic Developments

Balaji Amines is progressing with several key projects:

1. DME Plant at Unit 4: Expected to be commissioned during FY2025-26.
2. N-Methyl Morpholine Project: On track for commissioning in FY2025-26.
3. Acetonitrile Expansion: Scheduled for commissioning in FY2026-27, featuring an improved process.

The company's subsidiary, Balaji Specialty Chemicals Limited, is advancing its ₹750.00 crore expansion plan, which has received mega project status under Maharashtra's Package Scheme of Incentives 2019.

Market Dynamics and Future Outlook

Managing Director D. Ram Reddy commented on the market conditions, stating, "Despite external challenges, we sustained healthy margins and maintained volumes at levels comparable to last year, underscoring the strength of our diversified product portfolio and efficient operations."

The company anticipates gradual improvement in operating performance as new capacities come online. Key focus areas include:

• Ramping up electronic grade DMC and pharma-grade propylene glycol lines
• Advancing import substitution initiatives
• Prioritizing high-value products and disciplined capital allocation

Conclusion

While Balaji Amines faces near-term challenges, including subdued demand in select pharma and agrochemical segments, the company remains optimistic about its medium to long-term prospects. With ongoing investments in R&D, cost optimization, and green chemistry initiatives, Balaji Amines aims to strengthen its position as a leading manufacturer of specialty chemicals in India.

Investors and stakeholders will be watching closely as the company navigates the evolving market dynamics and capitalizes on its expansion plans in the coming quarters.