BALAMINES - Balaji Amines

📊 NSE: BALAMINES 🏢 Chemicals 📅 Last Updated: 12/13/2025 18:57

💰 Financial Performance

Revenue Growth by Segment

Total volumes for Q2 FY26 were 26,165 MT, broadly steady YoY. Segment volumes: Amines (7,685 MT), Amines Derivatives (8,374 MT), and Specialty Chemicals (10,107 MT). Consolidated revenue for Q2 FY26 stood at INR 341 Cr, a 4.7% decline from INR 358 Cr in Q1 FY26.

Geographic Revenue Split

Not disclosed in available documents, though the company utilizes export earnings as a natural hedge against foreign exchange risks.

Profitability Margins

Profitability showed resilience with Q2 FY26 PAT at INR 37 Cr, flat QoQ. PAT margin for H1 FY26 stood at 10%. Standalone PAT margin for Q2 FY26 was 11%, down from 12% YoY.

EBITDA Margin

EBITDA margin improved to 19% in Q2 FY26 from 17% in Q1 FY26, driven by efficient operations despite a 4% YoY decline in absolute EBITDA to INR 67 Cr.

Capital Expenditure

The company capitalized INR 147.72 Cr in FY25. Current Capital Work-in-Progress (CWIP) totals INR 289 Cr, including INR 116 Cr at subsidiary Balaji Speciality Chemicals Ltd (BSCL) for greenfield expansion and INR 173 Cr across other units for DME and NMM projects.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company maintains a zero-debt status on a standalone basis with minimal consolidated finance costs of INR 1 Cr per quarter.

⚙️ Operational Drivers

Raw Materials

Major raw materials (specific chemical names not listed) accounted for INR 185 Cr in Q2 FY26, representing 53.1% of total revenue.

Import Sources

Not disclosed in available documents, though the company imports major raw materials in bulk quantities.

Key Suppliers

Not disclosed in available documents; procurement is managed through spot prices and annual contracts.

Capacity Expansion

Unit 4 Greenfield Phase 2 & 3 capex is scheduled for completion by FY 2026. New plants commissioned include Methylamines and N-Butylamine (Unit IV).

Raw Material Costs

Raw material costs were INR 185 Cr in Q2 FY26, a 1.6% decrease from INR 188 Cr YoY. Procurement strategies include bulk contracting to gain price advantages.

Manufacturing Efficiency

Maintained steady volumes of 26,165 MT in Q2 FY26 despite moderated demand in end-user segments, reflecting high operational efficiency.

📈 Strategic Growth

Expected Growth Rate

7.80%

Growth Strategy

Growth will be driven by the completion of Unit 4 Greenfield Phase 2 & 3 by FY26, the commissioning of the Dimethyl Ether (DME) and N-Methyl Morpholine (NMM) plants, and expansion into advanced chemicals like HCN, NaCN, and EDTA at the BSCL subsidiary.

Products & Services

Methylamines, N-Butylamine, Dimethyl Ether (DME), N-Methyl Morpholine (NMM), Iso Propyl Amine, HCN, NaCN, EDTA, and EDTA-Na.

Brand Portfolio

Balaji Amines, Balaji Speciality Chemicals Limited, and Balaji Sarovar Premiere (Hospitality).

New Products/Services

New launches include DME, NMM, and Iso Propyl Amine; revenue contribution percentages are not yet disclosed as projects are under development.

Market Expansion

Targeting advanced chemical sectors through greenfield and brownfield expansions at Unit 4 and BSCL with a timeline extending through FY26.

🌍 External Factors

Industry Trends

The Amines market is projected to grow at a CAGR of 7.8% from 2024 to 2030, reaching US$23.5 billion, driven by critical demand in healthcare and agriculture.

Competitive Moat

Moat is built on a diversified product portfolio, integrated manufacturing capabilities, and a zero-debt standalone balance sheet, providing high financial flexibility for expansion.

Macro Economic Sensitivity

Sensitive to demand cycles in the pharmaceutical and agrochemical industries, which are primary end-user sectors.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 115 (Revenue) and Ind AS 16 (PPE) standards; adherence to Companies Act 2013 and SEBI Listing Regulations as confirmed by secretarial audits.