BASF India FY26 Results: Robust Q4, Portfolio Restructuring

Sales: ₹15,539 crores (consolidated, including discontinued operations)
Volume Growth: 6-7% year-on-year
Price Impact: Negative 5-6% due to market conditions
Profit Before Tax (before exceptional items): ₹564 crores
Earnings Per Share: ₹97 (compared to ₹110 in previous year)
Return on Capital Employed (ROCE): 16.3% (compared to 18.5% previous year)
Return on Net Operating Assets (RONOA): 19.7%
Cash Flow from Operations: Negative ₹110 crores (compared to positive ₹370 crores previous year)
Working Capital Increase: ₹600 crores higher than March 2025, mainly due to higher receivables and lower payables
Capital Expenditure: ₹200 crores for FY26

Revenue Growth: 10% year-on-year
Volume Growth: 12-15%
Profit Before Tax (before exceptional items): ₹90 crores (compared to ₹25 crores in Q4 FY25)
OMP (Own Manufactured Products) Contribution: 42% of sales with 25-30% gross margins
Merchandise Contribution: 58% of sales with 5-10% gross margins

1. Materials: Largest segment at ~33% of total sales

2. Nutrition and Care: Second largest segment

3. Industry Solutions: Includes performance chemicals and dispersions

4. Agricultural Solutions: ₹2,000 crores (12% of total sales)

5. Surface Technologies (Coatings): ₹595 crores (4% of total sales)

6. Chemicals: Pure merchandise business

Nutrition and Care: Strong performance with both volumes and prices increasing
Industry Solutions: Volume increase but significant price pressure
Agricultural Solutions: Down ₹120 crores year-on-year, volumes slightly down but prices improved
Materials: Both volumes and prices down due to market conditions
Coatings: ₹595 crores sales, nearing break-even (₹3 crore positive from minus ₹7 crore previous year)

Receivable Days: 65 days with 8% overdue (well-controlled)
Inventory Days: Slightly higher due to supply chain disruptions
Operating Expenses: Higher fixed costs identified as focus area for control
Safety Performance: No high severity incidents or process safety incidents in FY26, two lost time injuries at Dahej site

SEBI and Stock Exchange Clearance: Received on February 2, 2026
Shareholders Meeting: Scheduled for June 24, 2026
Share Entitlement Ratio: 1:1
Business Fundamentals: 7% market share in India, 8% CAGR over last 4-5 years
Innovation: 12 new products launched in last 4 years representing 25% of division sales
Market Challenges: Erratic monsoons, soft commodity prices, high channel inventories, input cost pressures

Buyer: Carlyle
Valuation: ₹230.16 crores (based on independent discounted cash flow valuation)
Sales Contribution: ₹595 crores (4% of consolidated sales)
Expected Closing: Q2 calendar year 2026, subject to regulatory approvals
Post-closing Structure: BASF to hold 40% equity stake, Carlyle majority and operational leadership

Business: Performance materials for automotive bumpers
Status: Building completed, commissioning targeted by end of 2026
Investment: ₹150 crores spent so far, additional ₹150-170 crores required
Significance: Represents ~10% of materials segment, high market share business

BASF SE Board Meeting: First ever outside Germany held in India (4 days in Delhi and Mumbai)
New Global Hubs in Hyderabad:
BASF Digital Solutions Private Limited (global digital hub)
BASF Global Business Services Private Limited (global business services hub for HR and finance)
Local for Local Strategy: Focus on increasing OMP share in relevant segments

West Asia Conflict Impact: Started end-February 2026, causing feedstock inflation, oil/gas price surge, supply chain disruptions, rupee depreciation
Economic Concerns: Potential stagflation (inflation with growth stagnation)
Input Cost Pressure: Fuel prices, fertilizer costs affecting farm customers
Competitive Environment: Chinese oversupply in upstream chemicals putting margin pressure
Demand Outlook: Potential softening due to inflation and geopolitical uncertainty

Focus Areas: Navigating crisis, price increases to pass on input costs, expansion project execution, portfolio measures completion
India Strategy: Advanced country status, key strategic market with long-term growth potential
Manufacturing Footprint: Evaluating opportunities but current focus on maximizing existing asset utilization
Royalty Payments: ₹156 crores in FY26, ranging from 1.5% to 13% depending on product maturity

Participants in Meeting: Mr. Alexander Gerding (Managing Director), Mr. Narendranath J. Baliga (CFO), Mr. Manohar Kamath (Director-Legal & Company Secretary), Mr. Anil Chaudhary (Whole-time Director & Head of Manufacturing)
Regulatory Compliance: Filed under Regulation 30 of SEBI LODR Regulations