Balaji Amines Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Balaji Amines reported a stable Q2 FY26 performance, with improved EBITDA margins despite moderated demand in some segments. The company is focused on commissioning new capacities for EV-based products and specialty chemicals, which are expected to drive significant volume and revenue growth in the coming quarters. Management expressed optimism for future performance, supported by strategic expansions and cost optimization efforts.

Highlights

  • Consolidated revenue from operations for Q2 FY26 stood at INR341 crores.

  • EBITDA for Q2 FY26 was INR67 crores, with margins improving to 19% from 17% in Q1 FY26.

  • Profit after tax (PAT) for Q2 FY26 was INR37 crores, consistent with the previous quarter.

  • Total volumes for Q2 FY26 were 26,165 metric tons, broadly steady year-on-year.

  • H1 FY26 consolidated revenue reached INR715 crores, with EBITDA of INR131 crores and a PAT of INR74 crores.

  • N-Methyl Morpholine and Dimethyl Carbonate (DMC) plants are expected to be commissioned by Q3 FY26 and Q4 FY26/Q1 FY27 respectively.

  • The company anticipates a minimum 8-10% volume growth in H2 FY26 and 15% growth in values and volumes for FY27.

  • Sustainable EBITDA margins are projected to be in the 20-22% range in the near term.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹341 Cr
    QoQ -4.8%
  • EBITDA
    ₹67 Cr
    QoQ +8.1%
  • EBITDA Margin
    19%
  • PAT
    ₹37 Cr
    QoQ 0%
  • Total Volumes
    26,165 metric tons
    YoY 0%

H1

  • Revenue
    ₹715 Cr
  • EBITDA
    ₹131 Cr
  • PAT
    ₹74 Cr

What they filed

Q1 FY27: revenue up 27.4%, net profit up 110.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue347 313 353 358 341 −2%331 +6%395 +12%456 +27%
EBITDA61 46 60 55 60 −2%57 +24%94 +57%116 +111%
Net profit41 31 40 37 37 −10%31 +0%65 +63%78 +111%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Q2 FY26 Volumes
    7,685 metric tons Amines Volumes8,374 metric tons Amines Derivatives Volumes10,107 metric tons Specialty Chemicals Volumes
  • Balaji Specialty Chemicals Limited (Subsidiary)
    ₹70 Cr H1 Revenue

Guidance & targets

Capacity

  • DME plant commissioning Capacity · Q3 FY26 · High confidence in coming 2 or 3 weeks
    The moment we receive the cylinder permission, the plant will be commissioned

    — D. Ram Reddy, Managing Director

  • N-Methyl Morpholine commissioning Capacity · Q3 FY26 · High confidence by the end of this current quarter
    N-methylmorpholine, which will be commissioned by the end of this current quarter.

    — D. Ram Reddy, Managing Director

  • Dimethyl Carbonate (DMC) commissioning Capacity · Q4 FY26 / Q1 FY27 · High confidence by the first quarter of the - first week of the next quarter
    dimethyl carbonate is again ready for the commissioning. This is also commissioned by the first quarter of the - first week of the next quarter.

    — D. Ram Reddy, Managing Director

  • Unit 1 brownfield expansion (EDA-based products) commissioning Capacity · Q2 FY27 · High confidence by September 2026
    The Unit 1 brownfield expansion for EDA-based products is expected to be commissioned by September 2026

    — D. Ram Reddy, Managing Director

  • Unit 2 greenfield project (Chincholi) commissioning Capacity · Q3 FY27 · High confidence by December 2026
    the Unit 2 greenfield project at Chincholi is progressing with equipment installation underway and expected commissioning by December 2026.

    — D. Ram Reddy, Managing Director

  • Acetonitrile expansion commissioning Capacity · FY27 · High confidence in FY2026-27
    the acetonitrile expansion based on an improved process is on track for commissioning in FY2026-27.

    — D. Ram Reddy, Managing Director

Volume

  • Volume growth Volume · H2 FY26 · Medium confidence minimum 8% to 10% growth
    we expect these things will come in this quarter. And I hope that definitely 8% to 10% volume growth should be there in this next half year.

    — D. Ram Reddy, Managing Director

  • Acetonitrile domestic consumption growth Volume · Future · Medium confidence minimum growth of 7% to 8%
    definitely, we expect that there will be a minimum growth of 7% to 8% consumption point of view for the acetonitrile in the domestic market.

    — D. Ram Reddy, Managing Director

Revenue|Volume

  • Growth (values and volumes) Revenue|Volume · FY27 · Medium confidence minimum 15% growth
    So there should be -- minimum 15% growth should be there, values and as well as the volumes also.

    — D. Ram Reddy, Managing Director

Margin

  • Sustainable EBITDA Margin Margin · Near term · Medium confidence 20% to 22%
    See, with a reasonable EBITDA, we should be in a position to maintain 20% to 22%. And with the lowest, it should be 17.5% to 18% and maximum is 24%, what we can see in the current competitive environment.

    — D. Ram Reddy, Managing Director

Risks & concerns

  • Moderated demand in select pharma and agrichem segments

    medium

    The quarter witnessed moderated demand, but management expects a gradual improvement in coming quarters.

    Management acknowledged

  • Near-term sub-optimum utilization of newly commissioned assets due to global uncertainties

    medium

    New capacities for electronic grade DMC and pharma-grade propylene glycol may not ramp up quickly due to market conditions and slow EV battery manufacturer adoption.

    Management acknowledged

  • Volatility in raw material prices (methanol, ammonia)

    medium

    Raw material price fluctuations can impact margins, though recent trends show prices settling at lower levels, which is favorable.

    Analyst acknowledged

  • Pricing pressures from Chinese imports, specifically for dimethylformamide

    medium

    Balaji Amines faces competition from China in 1-2 products, primarily dimethylformamide, leading to price volatility.

    Analyst acknowledged

  • Delays in anti-dumping investigation for Ethylene Diamine (EDA)

    medium

    The anti-dumping case for EDA is delayed due to a change in the investigating officer, prolonging uncertainty.

    Analyst acknowledged

Areas of evasion (1)

  • Specific reasons for domestic EV battery manufacturers' slow ramp-up.

Q&A highlights

2 direct, 1 evasive
Ramp-up challenges for domestic EV battery manufacturers and impact on DMC, PG, NMP demand Evasive
It's very difficult to tell to me. We will have to understand from them only. In fact, we are also waiting for their gearing up into full swing.

Highlights a key demand-side uncertainty for their new EV-related products, which are crucial for future growth, with management unable to provide a clear timeline for resolution.

Asked by Sheetalkumar Shah

Update on anti-dumping investigation for Ethylene Diamine (EDA) Direct
We had an oral hearing. And there was this thing, one officer is retired -- the officer who was investigating this has retired. Now the case has been allotted to a new officer. Probably this month end, we should get another hearing. And maybe by end of the next month, we should be in a position to get some results on the antidumping for the EDA.

Anti-dumping duties could significantly impact the competitiveness and profitability of EDA, a key product. The delay due to administrative changes adds uncertainty to the resolution timeline.

Asked by Ashish Menon

Impact of a pharma customer's backward integration into methylamines on revenues and market demand Direct
I have not seen a major impact as of now. I don't know whether they have commissioned the plant. They are yet to commission the plant. But we have not seen any major impact to us.

Addresses potential competitive pressure and market share erosion from a key customer becoming a competitor, with management indicating no immediate impact.

Asked by Ashish Menon

3 min read 7 chapters

Detailed narrative

Q2 FY26 Financial Performance and H1 Overview

Balaji Amines reported a Q2 FY26 consolidated revenue of INR341 crores, a slight decrease from INR358 crores in Q1 FY26. EBITDA for the quarter was INR67 crores, with margins improving to 19% from 17% in the previous quarter, while PAT remained stable at INR37 crores. For the first half of FY26, consolidated revenue stood at INR715 crores, with an EBITDA of INR131 crores and a PAT of INR74 crores, reflecting an 18% EBITDA margin and 10% PAT margin. The company maintained a zero-debt position and healthy cash management.

Volume Performance Across Product Categories

Total operational volumes for Q2 FY26 were 26,165 metric tons, maintaining a steady year-on-year level. This was broken down into 7,685 metric tons for amines, 8,374 metric tons for amines derivatives, and 10,107 metric tons for specialty chemicals. Despite a mixed operating environment and moderated demand in select pharma and agrichem segments, the diversified product portfolio helped sustain volumes.

Strategic Capacity Expansion and Commissioning Updates

The company is on track with several key projects. The DME plant is expected to be commissioned within 2-3 weeks, pending cylinder approval. N-Methyl Morpholine is slated for commissioning by the end of Q3 FY26, and Dimethyl Carbonate (DMC) by Q4 FY26 or early Q1 FY27. The Unit 1 brownfield expansion for EDA-based products is targeted for September 2026, and the Unit 2 greenfield project at Chincholi by December 2026. The acetonitrile expansion is also progressing for commissioning in FY2026-27.

Outlook for EV-Based Products and Demand Ramp-up

Balaji Amines has commissioned electronic grade DMC and battery-grade NMP, with DMC currently operating at 20% capacity for other applications. However, the ramp-up of domestic EV battery manufacturers has been slower than anticipated, impacting full utilization. Management expects bulk demand from EV players to commence from December 2025 or April 2026, as they await the industry's 'kick start'.

Future Growth Projections and Margin Guidance

Management anticipates a gradual improvement in performance, projecting a minimum 8% to 10% volume growth in H2 FY26. For the next financial year (FY27), a minimum 15% growth in both values and volumes is expected, assuming optimal capacity utilization. The sustainable EBITDA margin is guided to be in the range of 20% to 22% in the near term, with a floor of 17.5-18% and a potential maximum of 24%.

Raw Material and Competitive Landscape

Raw material prices, particularly methanol and ammonia, have shown volatility but have recently started settling at lower levels (methanol below INR30, ammonia around INR47-48). This trend is expected to improve margins and boost export opportunities. While the company faces some pricing pressure from Chinese imports, mainly for dimethylformamide, it generally maintains competitiveness across its diversified product portfolio.

Green Chemistry Initiatives and Subsidiary Progress

Balaji Amines is committed to green chemistry, with approximately 80% of its manufacturing now powered by solar energy through rooftop installations and a dedicated solar park. The subsidiary, Balaji Specialty Chemicals Limited, is making steady progress on its INR750 crores expansion, which includes products like hydrogen cyanide and EDTA, and is expected to significantly contribute to the company's long-term growth and product diversification.

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