Balaji Amines Limited — Q4 FY26 earnings call

Call held 18 May 2026

Management summary

Balaji Amines reported a strong Q4 FY26 with significant revenue and profit growth, driven by improved margins and operational efficiencies. The company made substantial progress on its strategic expansion projects, including DME, NMM, ACN, and Balaji Specialty Chemicals, which are expected to drive future growth. Despite challenges like geopolitical impacts and raw material volatility, management expressed confidence in maintaining profitability and achieving volume growth targets.

Highlights

  • Consolidated revenue for Q4 FY26 stood at INR 403 crores, registering a 12% YoY growth compared to INR 361 crores in Q4 FY25.

  • Consolidated EBITDA for Q4 FY26 was INR 102 crores, a significant increase from INR 68 crores in Q4 FY25.

  • EBITDA margin improved to 25% in Q4 FY26, up from 19% in Q4 FY25 and 18% in Q3 FY26, driven by better operating leverage, stable raw material conditions, and favorable product mix.

  • Profit after-tax for Q4 FY26 stood at INR 65 crores, a 62.5% YoY increase from INR 40 crores in Q4 FY25.

  • Diluted EPS for Q4 FY26 was INR 19.99 per equity share, compared to INR 9.49 per equity share in Q3 FY26.

  • The company maintained a strong consolidated net worth of INR 2,152 crores as of March 2026.

  • DME plant at Unit 4 is expected to be commissioned during Q1 FY27, NMM during FY27, and ACN during Q2 FY27, with Balaji Specialty Chemicals Unit-I in H1 FY27 and Unit-II in Q4 FY27.

Concerns

  • Production was briefly impacted in March 2026 due to an external geopolitical situation.

  • Some plants (DMF, butylamines, battery chemicals) are operating at low utilization (35-40%) due to market conditions and nascent demand.

  • Raw material prices, such as Monoethanolamine, have increased significantly, sometimes up to 3 times the normal price.

  • Transportation approval for Dimethyl Ether (DME) is still pending, though manufacturing approval is in place.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹403 Cr
    YoY +11.6%
  • Consolidated EBITDA
    ₹102 Cr
    YoY +50%
  • Consolidated EBITDA Margin
    25%
  • Consolidated PAT
    ₹65 Cr
    YoY +62.5% QoQ +109.7%
  • Diluted EPS
    ₹19.99
    QoQ +110.6%

FY26

  • Net Cash from Operating Activities
    ₹184 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

Share of Sales Volume
27,341 metric tons Total
  • Specialty Chemicals 10,660 metric tons 39.0%
  • Amines Derivatives 8,935 metric tons 32.7%
  • Amines 7,746 metric tons 28.3%

Capital allocation

high confidence
  • Capex ₹275 Cr
    • DME, NMM, ACN projects (remaining) ₹20 Cr
    • Balaji Specialty Chemicals expansion (total phased investment of INR 750 crores) ₹350 Cr
    • Balaji Specialty Chemicals expansion (additional spend this current year) ₹200 Cr
    During FY26, the company generated INR184 crores of net cash from operating activities. Cash flow from investing activities stood at negative INR344 crores, reflecting investments towards ongoing growth projects. I think hardly INR20 crores must be there. We already spent almost all the money. We paid the advance of the equipment. They're on the way. Only is balance is there maybe INR20 crores. Its total INR750 crores in first phase, we'll be spending about INR350 crores to INR400 crores. This year, it's about – we already spent more than INR100 crores, INR110 crores. We'll be spending about another INR200 crores, INR250 crores this current year. Yes, INR275 crores to INR290 crores.
  • Debt Debt disclosed
    Consolidated debt stood at INR133 crores, mainly on account of ongoing expansion related activities.

Guidance & targets

Volume

  • Volume Growth Volume · by 2027 end · High confidence 25-30%
    I hope that, the volume growth should be in the coming financial year. I mean this year, maybe partly we are coming up, and I'm talking about the 2027 end there should be minimum 25% to 30% volume growth should be there from the current value and the EBITDA should be sustainable between 22% to 23%, on the total sales.

    — D Ram Reddy

  • DME Utilization (Current FY) Volume · current financial year · Medium confidence 30-40%
    Our current financial year maybe about 30% to 40%, we should be in a position to utilize because there will be some teething problems in the production even it's and also using the new product is being the first time in the country and also adjusting to the product also will take some time.

    — D Ram Reddy

  • DME Utilization (End of Current FY) Volume · by end of current financial year · Medium confidence 50-60%
    By end of the year, we should reach to 50% to 60% capacity. And the coming years, it will go to 80% to 90%.

    — D Ram Reddy

  • DME Utilization (Coming Years) Volume · coming years · Medium confidence 80-90%

    — D Ram Reddy

  • Consolidated Volume Growth Volume · this year · Medium confidence 10-15%
    I assume it will be 10% to 15% volume growth should be there.

    — D Ram Reddy

Profitability

  • EBITDA Margin Profitability · sustainable · High confidence 22-23%
    I hope that, the volume growth should be in the coming financial year. I mean this year, maybe partly we are coming up, and I'm talking about the 2027 end there should be minimum 25% to 30% volume growth should be there from the current value and the EBITDA should be sustainable between 22% to 23%, on the total sales.

    — D Ram Reddy

Revenue

  • Revenue Revenue · 2028 · High confidence INR 3,000 crores
    Definitely, you have not heard fully. I said the situation goes like this. We will be definitely reaching INR3,000 crores in 2028.

    — D Ram Reddy

Capacity

  • DME Plant Commissioning Capacity · Q1 FY27 · High confidence Q1 FY27
    The dimethyl ether, our DME plant at Unit 4 is expected to be commissioned during the first quarter of FY27

    — D Ram Reddy

  • NMM Project Commissioning Capacity · FY27 · High confidence FY27
    Our N-Methyl Morpholine, our NMM Project with a capacity of 5,000 TPA is currently under execution and is expected to be commissioned during FY27.

    — D Ram Reddy

  • ACN Plant Commissioning Capacity · Q2 FY27 · High confidence Q2 FY27
    The improved process based Acetonitrile or ACN Plant is also under execution and is expected to be commissioned during the second quarter of FY27.

    — D Ram Reddy

  • Balaji Specialty Chemicals Unit-I (EDA-based) Commissioning Capacity · H1 FY27 · High confidence H1 FY27
    At Unit-I, the brownfield project of EDA-based value-added products including DETA, TETA, PIP, AEEA and AEP is expected to be commissioned during the first half of FY27.

    — D Ram Reddy

  • Balaji Specialty Chemicals Unit-II (HCN, NaCN, EDTA) Commissioning Capacity · Q4 FY27 · High confidence Q4 FY27
    At Unit-II, which is the greenfield projects at MIDC, Chincholi erection and installation work is currently in progress. This project is proposed for the manufacturer of HCN, NaCN, EDTA and EDTA-2NA and is expected to be commissioned during Q4 FY27.

    — D Ram Reddy

What to watch in Q1 FY27

DME Plant Commissioning & Transportation Approval

Q1 FY27 (commissioning), within a month (transportation approval)
Current Plant constructed, commissioning ongoing, transportation approval pending
Target Commercial operations commence, transportation approval secured

Why it matters

Crucial for realizing revenue from the new DME plant and achieving utilization targets.

The dimethyl ether, our DME plant at Unit 4 is expected to be commissioned during the first quarter of FY27... Only thing is for the transportation part of the approvals, have already been on the place. So, that is a reason we are going ahead. Plant is already fully constructed. Just commissioning is going on. Now, the commissioning activities are going on.

Risks & concerns

  • Raw material price volatility and increases

    high

    Raw material prices, like Monoethanolamine, have increased up to 3 times normal, requiring alert inventory management.

    Management acknowledged

  • Geopolitical situation impacting production

    medium

    Production was briefly impacted in March 2026 due to an external geopolitical situation, but managed through inventory planning.

    Management acknowledged

  • Low utilization for certain plants

    medium

    DMF, butylamines, and battery chemicals plants are operating at 35-40% utilization due to market conditions and nascent demand for battery chemicals.

    Management acknowledged

  • DME transportation approval pending

    medium

    While manufacturing approval for DME is in place, transportation approval is still pending, which is crucial for bulk sales.

    Management acknowledged

  • Teething problems for new products

    medium

    New products like DME, NMM, and ACN may face initial challenges in meeting customer specifications and gaining market acquaintance.

    Management acknowledged

Q&A highlights

6 direct
Low utilization despite ongoing expansions Direct
See, the new projects, they are not the same products, increasing the capacity. They are all new products like we are talking of the Dimethyl Ether, which is an alternate to the LPG. So this we planned about 4, 5 years back by contacting the NITI Aayog. That product will be commissioning probably maybe in this month only. And other thing is Acetonitrile which was that was the old technology. We have just improved the technology. And you are talking about the utilization, yes, only 1 or 2 plants are utilized very lower capacity like DMF and like butylamines, like battery chemicals, DMC and all because the battery manufacturers are yet to take off so there's a reason those clients. So we are gearing up. And we are getting ready for the tomorrow's requirements.

Clarifies that new expansions are for different products and low utilization in some existing plants is due to market conditions for those specific products, not overcapacity across the board.

Asked by Priyank Chheda

Impact of supply chain disruptions on realizations and margins Direct
See, these prices, you are aware that because of the current geopolitical situation, most of the raw materials, now sometimes it is double even 3 times also 2.5 times of it's regular prices. So becasue of the some maybe some of the plants might have shut down because of this situation. We got the proper uptake from the customers for this current quarter. And because of the proper inventory management, we could be in a position to maintain these profit margins. And we give the guidance in coming quarters also, because of the new plants or new products are coming up.

Explains how the company is managing raw material price volatility and geopolitical impacts to maintain profit margins, indicating strong inventory management and pass-through ability.

Asked by Priyank Chheda

Risk from large metformin customer backward integrating Direct
See, it is for you, you are feeling it is a large manufacturer. But for us, what we have seen is their requirement of the Di-Methyl Amine Hydrochloride maybe about 15% to 20% of the total our outflow. And secondly, even today also, they are buying even this month also, they are buying from us. I don't know where from you got and maybe they have some problems or maybe our cost is better than their cost of production, even today also, they are buying from us.

Addresses a potential customer concentration risk, indicating that the customer still relies on Balaji Amines for a significant portion of their requirement, possibly due to cost advantages.

Asked by Priyank Chheda

DME approvals and market demand for Balaji Specialty Chemicals capex Direct
See, number one, this is regarding the Dimethyl Ether approvals. See, there is no, nothing is pending for the manufacturing point of view. We are already having the permission for the manufacturing. Only thing is for the transportation part of the approvals, have already been on the place. So, that is a reason we are going ahead. Plant is already fully constructed. Just commissioning is going on. Now, the commissioning activities are going on. And as regards the consumption of DME in the country presently, India is importing almost 25% to 40% of the LPG from outside country. And we are talking about only 100,000 MT and that is 1 lakh tons capacity. We are putting up.

Provides clarity on the status of DME approvals (manufacturing clear, transport pending) and the significant market opportunity for DME as an LPG replacement, justifying the capex.

Asked by Parikshit Gujrati

Lower gross margins in subsidiary due to raw material cost increase Partial
Yes. There's an increase in the raw material prices like Monoethanolamine. It's almost 3 times than the normal. Yes, because we cannot consider these numbers, Nilesh. The reason is it's hardly working 15 days or 20 days and even 10 days, it has worked, only thing is after these modifications from the third quarter onwards, you can see the real figures of this existing plant.

Explains that the subsidiary's lower gross margins are due to both raw material price increases and the plant operating at reduced capacity due to ongoing modifications, making current performance not indicative of future potential.

Asked by Nilesh Ghuge

DME sales strategy and customer acquisition Direct
We approached almost all the customers to equivalent to our capacity. The only thing is this being a gas we cannot provide them the sample. People are asking for sample. Now we ordered about 100 cylinders of 500 kg each. Those will be sending one, one cylinder to each customer, even though they are the bulk consumers, they'll be testing with 500 kgs. And after that testing, when the trials are done successfully, then they will be placing the order for bulk requirement, of course, after receipt of the transport permission.

Details the strategy for customer acquisition and product testing for DME, highlighting the challenges of introducing a new gas product and the steps taken to secure bulk orders.

Asked by Anil Shah

Delay in greenfield/brownfield capex for Balaji Specialty Chemicals Direct
No. The things what we said in 2023, we're already the production like ethylamine, the DMC and all those products are already in production. Now we — modifications, we have taken last year only the modification decision for the Balaji Specialty Chemicals one, which is going on. You yourself saying that you did not visit from 2023, how can you say what is happening at the plant level. Once you visit, you will understand what quantum of work is involved, what type of machinery is involved once you visit probably by this month and or next month mid we will be inviting the investor stakeholders for the visit of the plant to witness the expansions going on.

Management refutes claims of delay, stating that production for some products is ongoing and modifications for Balaji Specialty Chemicals are progressing, inviting investors to witness the progress.

Asked by Rajiv Rupani

2 min read 6 chapters

Detailed narrative

Q4 FY26 Performance Highlights

Balaji Amines delivered a robust Q4 FY26, with consolidated revenue growing 12% year-on-year to INR 403 crores. EBITDA saw a significant increase to INR 102 crores, leading to an expanded EBITDA margin of 25%, up from 19% in Q4 FY25. Profit after-tax surged by 62.5% YoY to INR 65 crores, and diluted EPS reached INR 19.99, reflecting strong operational performance and favorable product mix.

FY26 Annual Performance and Financial Strength

For the full fiscal year 2026, consolidated revenue stood at INR 1,454 crores, a slight increase from INR 1,430 crores in FY25. EBITDA grew 11% to INR 294 crores, with the margin improving to 20% from 19% in FY25. The company maintained a strong balance sheet with consolidated net worth at INR 2,152 crores and manageable debt of INR 133 crores, primarily for ongoing expansion projects.

Strategic Projects and Capacity Expansion

Balaji Amines is actively pursuing several strategic projects. The Dimethyl Ether (DME) plant at Unit 4 is expected to be commissioned in Q1 FY27, with N-Methyl Morpholine (NMM) and Acetonitrile (ACN) plants following in FY27 and Q2 FY27, respectively. The Balaji Specialty Chemicals expansion, a phased INR 750 crore investment, will see Unit-I commissioned in H1 FY27 and Unit-II (for HCN, NaCN, EDTA) in Q4 FY27, significantly enhancing the specialty chemicals portfolio.

Operational Challenges and Raw Material Volatility

The company faced operational challenges, including a brief production impact in March 2026 due to geopolitical events, which was managed through prudent inventory planning. Raw material prices, such as Monoethanolamine, have seen increases of up to 3 times normal levels. Management highlighted the need for constant vigilance in procurement to maintain margins amidst this volatility.

Volume Growth and Margin Outlook

Management guided for a minimum 25-30% volume growth by the end of 2027 and aims to sustain EBITDA margins between 22-23% on total sales. For the current financial year, a consolidated volume growth of 10-15% is anticipated. DME utilization is projected to reach 30-40% in the current FY, increasing to 50-60% by year-end and 80-90% in coming years, despite initial teething problems for new products.

DME Market Opportunity and Customer Strategy

The DME project targets the Aerosol industry and commercial establishments as a replacement for LPG, addressing India's significant LPG import dependency. The company has secured manufacturing approval for DME, with transportation approval pending. Balaji Amines is actively engaging potential customers, providing 500kg cylinders for testing, with bulk orders expected post-testing and receipt of transport permission.

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