BASF India shares jumped more than 11% in intraday trade on Tuesday after the chemicals maker reported a sharp rise in June-quarter earnings, levaraged by stronger operating performance.
The company also announced plans to source renewable power for its Navi Mumbai plant and shut select Care Chemicals facilities at its Dahej site.
Profit More Than Doubles On Strong Revenue Growth
The company posted a consolidated net profit of Rs 360.3 crore for the quarter, up nearly 2.5 times from Rs 137.4 crore in the corresponding period last year.
Revenue from operations rose 29% year-on-year to Rs 4,824 crore, compared with Rs 3,741 crore a year ago.
Operating performance also strengthened during the quarter, with Ebitda increasing to Rs 504.4 crore from Rs 223.3 crore in the year-ago period. Ebitda margin expanded to 10.5% from 6%, reflecting improved profitability.
Board Approves Renewable Energy Investment
Separately, BASF India's board approved the acquisition of a 14.18% equity stake in Clean Max Galapagos Private Ltd., a special purpose vehicle incorporated by Clean Max Enviro Energy Solutions Ltd.
The investment, amounting to up to Rs 9.45 million, will enable the company to procure around 4,240 MWh of renewable solar power annually, including green attributes, for its Navi Mumbai manufacturing facility under Maharashtra's Group Captive Power Generation mechanism.
Care Chemicals Plants At Dahej To Be Closed
In another regulatory filing, the company announced that the board has also approved the closure of the sulfation and low-temperature reactor plants of its Care Chemicals business at the Dahej manufacturing site.
BASF India said the decision was driven by a changing competitive landscape in India, resulting in excess industry capacity, high costs and margin pressure.
The closure is expected to be completed by the end of calendar year 2026, subject to the necessary approvals.
“The Care Chemicals business will continue to manufacture, import and sell its other chemical products to customers in India based on their requirements,” the company stated in the filing.
Stock Movement
The stock gained over 11% in intraday trade on Tuesday, mainly driven by the positive Q1 earnings growth and acquisition plans.
The stock is trading at Rs 4,132 apiece on the NSE around 2.20 pm today, at a price-to-earnings multiple of 38.4 times.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
