Ladies and gentlemen, good day and welcome to the Balaji Amines Limited Quarter 2 Fiscal Year 2027 Earnings Conference Call hosted by Elara Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Akshat Vijay from Elara Securities Private Limited. Thank you, and over to you, sir.
Ladies and gentlemen, good day and welcome to the 2Q FY 2027 conference call of Balaji Amines, hosted by Elara Securities Private Limited. I now hand over the conference to Mr. Ram Reddy from Balaji Amines. Thank you, and over to you, sir.
Thank you, Akshat. Good evening, everyone, and a warm welcome to Balaji Amines Limited Earnings Conference Call for the second quarter and half year ended September 30th, 2026. I hope all of you have had an opportunity to go through our financial results, press release, and investor presentation, which have been uploaded on the stock exchange and on our company website. Let me begin by putting the first half performance into perspective. H1 FY 2027 has been a strong period for Balaji Amines from a profitability standpoint. While the overall operating environment and sales volumes remained somewhat challenging, we have delivered meaningful improvement in revenue, EBITDA, and profitability. This reflects our continued focus on product mix, operating efficiencies, cost management, and strengthening the contribution from our diversified business portfolio.
More importantly, we have continued to advance our expansion program with the commencement of commercial production at our expanded acetonitrile facility and the commissioning of our DME plant. These developments mark an important transition in our growth journey, as our focus increasingly shifts towards commercialization and utilization of the capacities created.
The financial performance. Coming to our consolidated financial performance for Q2 FY 2027, revenue stood at INR 472 crore compared to INR 348 crore in Q2 FY 2026, registering a year-on-year growth of approximately 36%. Consolidated EBITDA for the quarter stood at INR 106 crore compared to INR 67 crore in the corresponding quarter last year, reflecting a growth of approximately 58%. EBITDA margin stood at 22% compared to 19% in Q2 FY 2026. Profit after tax for the quarter stood at INR 67 crore against INR 37 crore in Q2 FY 2026, registering a growth of approximately 82%.
Diluted EPS for the quarter stood at INR 20.76 per equity share compared to INR 10.67 in the corresponding period last year. On a sequential basis, revenue improved to INR 472 crore from INR 461 crore in Q1 FY 2027. Sales volumes also increased to 24,491 metric tons from 21,587 metric tons in the preceding quarter, indicating an improvement in overall uptake.
However, EBITDA moderated to INR 106 crore from INR 121 crore in Q1 FY 2027, with margins moving from 26% to 22%. While profitability moderated sequentially, the year-on-year performance continues to reflect a significant improvement in our earnings profile. Looking at the first half of the FY 2026-2027 performance, consolidated revenue for H1 FY 2027 stood at INR 933 crore compared to INR 715 crore in H1 FY 2026, registering a growth of approximately 31%. Consolidated EBITDA increased to INR 227 crore from INR 131 crore, representing a growth of approximately 74%.
EBITDA margins improved to 24% from 18% in the corresponding period last year. Consolidated PAT for H1 FY 2027 stood at INR 146 crore compared to INR 74 crore in H1 FY 2026, registering a growth of approximately 98%. What is particularly encouraging is the improvement in profitability despite lower aggregate sales volumes. This demonstrates our ability to maintain earnings resilience through product portfolio management, operational efficiencies, and a continued focus on value addition. On a standalone basis, revenue for Q2 FY 2027 stood at INR 434 crore, EBITDA at INR 103 crore, and PAT at INR 69 crore. Balaji Amines Limited continues to maintain a zero-debt position at the standalone level. Moving to our operational performance, consolidated sales volumes for Q2 FY 2027 stood at 24,491 metric tons compared to 26,161 metric tons in Q2 FY 2026, representing a moderation of approximately 6%.
However, on a sequential basis, volumes improved by approximately 13.5% compared to Q1 FY 2027. This improvement is encouraging and reflects better uptake during the quarter. Segment-wise, Q2 volumes comprised 6,525 metric tons from amines, 8,974 metric tons from amines derivatives, and 8,990 metric tons from specialty chemicals. For H1 FY 2027, consolidated sales volume stood at 46,078 metric tons compared to 53,735 metric tons in the corresponding period last year.
Our diversified presence across amines, derivatives, and specialty chemicals continues to provide stability to the business. We cater to several end-user industries, including pharmaceuticals, agrochemicals, paints, resins, solvents, rubber chemicals, and other industrial applications. Going forward, improving volumes alongside maintaining the improved profitability profile will remain an important priority. Let me now share some of the important developments across our manufacturing facilities. During the quarter, we achieved a significant milestone with the commencement of commercial production of our process-improved acetonitrile plant.
With this improved process, the expanded capacity has increased to 1,440 tons per month. The upgraded facility incorporates improved technology and enhanced process efficiencies. This expansion strengthens our ability to cater to customer requirements and increases our strength in the acetonitrile market. Our focus will now be on stabilizing operations, developing the customer base, and progressively improving utilization of this expanded capacity. It is with great pleasure to share the news of dimethyl ether road tanker valves approved from the PESO Nagpur office after a thorough testing process. We are actively working towards developing the customer ecosystem and exploring opportunities in both domestic and international markets. The aerosol segment represents an important opportunity for DME, and our efforts are directed towards establishing a sustainable customer and distribution network.
We believe DME can become an important addition to our product portfolio as the market develops and commercial volumes gradually scale up in the aerosol space, as this is directly serving the healthcare and personal care sectors. Our next product in the pipeline is N-methylmorpholine, or NMM, which will further strengthen our specialty chemicals portfolio. The project is progressing, and we remain focused on its commercialization during FY 2027.
Alongside capacity expansion, we continue to invest in process improvements and indigenous manufacturing capabilities. Our efforts towards improving the manufacturing process of diisopropylamine have also yielded positive results, reinforcing our emphasis on process optimization and operational efficiencies. Coming to Balaji Specialty Chemicals Limited, the company continues to progress with its expansion program being implemented in phases. The objective is to broaden our specialty chemicals portfolio and increase our participation in products that offer import substitution opportunities and higher value addition.
In Unit I the brownfield expansion project involving EDA-based derivatives, including DETA, TETA, Piperazine, AEEA, and AEP, is progressing and is expected to be commissioned towards the end of FY 2027. At Unit II, the greenfield expansion project at MIDC Chincholi for the manufacture of hydrogen cyanide, sodium cyanide, EDTA, and EDTA-2Na is progressing with equipment erection and installation activities. The project is targeted for commissioning in Q4 FY 2027. These projects are strategically important as they will strengthen our product portfolio, enhance integration, and expand our presence in specialty chemicals catering to multiple industrial applications. We believe these investments will provide a stronger platform for Balaji Specialty Chemicals and create additional opportunities for growth over the coming years. Moving to our balance sheet, our financial position continues to remain comfortable.
As of September 30th, 2026, consolidated net worth stood at INR 2,023.02 crore compared to INR 1,976.46 crore as of March 31, 2026. Consolidated debt stood at INR 161.15 crore, while cash and cash equivalents stood at INR 52.62 crore. During H1 FY 2027, cash flow from operating activities stood at INR 54.46 crore. Investments towards ongoing expansion projects and capital expenditure results in cash outflow of INR 99.38 crore. On a standalone basis, Balaji Amines continues to maintain a zero-debt position. Our capital allocation approach remains focused on funding strategic growth initiatives while maintaining financial discipline and ensuring adequate financial flexibility. As we move into the second half of FY 2027, we believe Balaji Amines is well-positioned to pursue its next phase of growth. The first half has demonstrated our ability to deliver sustained earnings growth despite moderation in aggregate volumes.
The focus now is to build on this performance through better capacity utilization, commercialization of new products, and enhancing our customer base for new expanded facilities, as well as new lines of DME and ACN streams of our expansion program. We see three important growth drivers coming together. First, our core amines and derivative business will continue to provide the operating foundation. We will focus on improving volumes, strengthening customer relationships, and enhancing manufacturing efficiencies. Second, the commissioning of our expanded acetonitrile facility and the DME plant provides additional opportunities to expand our presence in value-added and import substitution products. Our immediate priority is to establish the customer base, stabilize operations, and progressively scale up commercial volumes. Third, the expansion program at Balaji Specialty Chemicals will significantly broaden our specialty chemicals portfolio.
As these projects are commissioned, they will provide access to additional products and end-user industries, strengthening our long-term growth platform. Importantly, our strategy is not limited to increasing manufacturing capacities. We are focusing on moving towards higher-value products, strengthening backward integration, developing indigenous manufacturing processes, and improving the overall quality of our earnings. We remain mindful of external factors, including raw material prices, global demand conditions, and geopolitical developments.
Nevertheless, the progress made across our projects, together with the strength of our existing businesses, gives us confidence as we enter H2 FY 2027. Our emphasis will remain on disciplined execution, improving capacity utilization, and ensuring that the investments made translate into sustainable business growth and shareholder value. With our established position in the amines industry, diversified product portfolio, integrated manufacturing capabilities, and a visible expansion pipeline, we remain confident about the long-term prospectus of Balaji Amines. Thank you all.
Now I leave the floor for the question answers.
Thank you very much. We will now begin the question -and -answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from Akshay Satija with Alpha Invesco. Please go ahead.
Congratulations and good job on the [inaudible] opportunity. Also, I believe China was earlier dumping DMF into India, and hence it was not viable for us to run plants in comparison with their costs. I wanted to understand now that DMF prices have shot up, what is the status of this plant running?
It is running in the improved capacities. Earlier we were running about 30%-40%. Now I think it is almost more than 50% capacity utilization is going on. Yes, you are right, the prices have been improved. Present prices are going on more than INR 110-INR 115 of the basic for the DMF.
Okay. That should also imply that the methylamine Unit III that you were operating only for a month or so in a quarter. I believe utilizations will improve there also.
No, no. Unit III was running, operating almost 80% capacity. You are talking about Unit IV capacity. Yes.
Sorry, yes. Yeah.
Yeah. Unit IV capacity utilization has improved, and we believe that if it goes like this, definitely this Unit IV will run in full capacity, at least to 70%.
What would be the current utilization for Unit IV?
Some 15%, 20% its utilization is there.
Okay. Sir, for DMC, we had actually signed a contract with one of the battery electrolyte manufacturer, and we had said that the volume should start from Q3 and Q4 also. If the client picks up further volumes, we could increase our capacity in FY 2028. Could you shed some light on the progress of the same for DMC?
Yes. This quarter, they are asking in the hundreds. Earlier they used to talk about the 20 tons, 40 tons, 60 tons, and this quarter they are asking almost 500 - 1,000 tons of the both the carbonates, like dimethyl carbonate and propylene carbonate. Probably by next month onwards, we should be in a position to deliver these 500 - 1,000 tons.
Okay. Any comments on the further adding capacity next year for the same client?
No, not yet. Here they are talking, many people are talking. Many people are asking us to invest and do the other carbonates also, but we are little optimistic on this. We just want to see those people should come on the stream, then only we want to set up our facilities for the further capacities. As this existing capacity itself, we were lagging to 30%, 20% as against of the 80%, 90% for the projections.
Got it, sir. Also, sir, the final question on the recent anti-dumping that has been applied on EDA. We are still not seeing any substantial increase in volume pickups for EDA. Could you shed some light on that part?
I will tell you. There is actually, prices have been improved on the EDA. We are working at almost 50%-60% capacity. The anti-dumping, it did not take place because the Commerce Ministry has recommended, but Finance Ministry did not implement that. Now we have prepared for a writ petition for the implementing this against the Finance Department. One government department recommends and other government department stops, which is not good. So we are approaching the court, like other companies also approached. We are also approaching the High Court. Probably in the coming one month, we may file this writ petition.
Okay. But that could still continue to drag the entire case, I believe.
Yeah. It will be there, sir. See, we are working with the government, right? One side, government is talking about the Make in India, Atmanirbhar Bharat, but other side, they are not supporting. Specifically, Finance Department is not supporting. I don't know what went wrong with them, because it's a clear case. The government has clearly mentioned, Ministry of Commerce, there is a dumping is happening in the country. But now for a short period, there is an opportunity, the price improvements. So there's a possibility that from the next one or two quarters, a possibility of running in full capacity. Because of the brownfield expansions, we are on and off, we are doing these modifications. We are running for 20 days and doing the modifications 10 days. Like that we are doing because we don't want to lose the market.
We want to be present in the market, and we want to do the modifications also. So both the things are happening. By end of this financial year, you will see the new products. We'll be completing the brownfield modifications, and also the old plant will be running as per the market conditions. Both the plants will be running.
Moving on to our next question. The next question comes from Aditya Iyer with HDFC Securities. Please go ahead.
Hi, am I audible?
Yeah, very well.
Okay. Sir, considering the elevated LPG prices, please give us some color on what approvals are remaining before we can supply our DME for LPG blending?
This is only PESO, part of the valves already approved in this quarter, and part of road tankers, which are at advanced stage. After this, they were waiting only for the valves approval. Now valves approval is completed. We expect in next three, four weeks for the road tankers approval. Once that comes, then the bulk supplies can happen in the country. Second, the important thing I would like to tell here, we have started exporting this in the bulk tanks, bulk ISO tanks. Since the international, there is no problem because the international market is already using and they have the all the approvals in place. So almost seven to eight tanks have been exported, and it is on repeated basis we are getting the orders for the exports in the ISO tanks for the aerosol application.
We are supplying commercially for aerosol-based applications right now. Is my understanding right?
Yes, you are right.
By when can we start commercial supply for the LPG blending? Are we approved with our customers, or is that approval still remaining?
We are actually working with BPCL, Bharat Petroleum Corporation, which in turn they apply to their government department to get the approval. The moment they get the approval, then we will be, it is in the same industrial area within 1 km, 1.5 km area, both the plants. We will be, the moment the approval comes from the Government of India for the BPCL for the blending, we will be supplying bulk supplies for the blending of LPG. Otherwise, we are working with few local commercial users who are already started using, like in the hotels for the cooking purpose and in the heating areas in industrial, that also we have given the samples. Even for aerosol, we have given the sample in the cylinders since we have the approvals in the cylinders. Some of the major aerosol manufacturers have taken in the cylinders.
They are doing their trials. Once the trial is finished, probably we will give in the cylinders, maybe 10 cylinders to the each customers, which are 540 kg of each cylinder.
Okay, sir. In our last interaction for DME, we had guided for a pricing of INR 100 per kg. Does that pricing still stand, or should we work with a different pricing for H2 FY 2027?
Yeah, see, because presently the methanol prices are because of the current geopolitical situation, methanol prices are high. The reason it is somewhere in the INR 90-INR 100 is the current price. We expect that it should go down the moment methanol goes down to the below INR 80 level, which will be much better competitive when compared to the LPG.
Okay. And sir, on acetonitrile, what has been the price sense in the last few months, and what pricing should we work with for H2 FY 2027?
See, this all depends upon the raw material prices. As I said, you are aware that because of this war and geopolitical situation, the main raw material prices are very volatile, not firm. This entire price of the acetonitrile depends upon the raw material prices. The current price is around 230, 240 level is going on. Since ours is a new technology and new capacities, we are working on the ramping up to the full capacity. Maybe in the coming two, three weeks, it will go in full swing with the full capacity of 1,440 metric tons per month of acetonitrile.
Should we assume INR 240 per kg for the entire capacity?
Thank you, sir. Aditya Iyer, I apologize. We are going to be moving on to the next question. Please, if you have more questions, join the queue. Thank you.
Okay.
Moving on to the next question.
Just wishing the team a happy Diwali.
Thank you. Thank you. Thank you, and same to you.
The next question comes from Kumar Saurabh with Scientific Investing. Please go ahead.
Congratulations on great set of numbers, sir. My question is, aspiration, I think you study on ET Now, and also in the latest annual report, we are aspiring for INR 3,000 crore-INR 4,000 crore kind of growth in medium term. My question is it an aspiration based on current prices, or does it discount the current prices? Because the result has been great, but the volumes have still not picked up, so major contribution is coming from value. Our aspiration, if you can give more.
Let me clarify on the volumes. Because of the volatile situation on the raw materials, our steps are very careful. If I buy anything at certain price, I do not know tomorrow what will be the same raw material price, whether it will go down drastically, whether it will go up. That's the reason we are going basing on the order booking. That's the reason you will see the volumes little lower than what we expected. As regards the 2028-2029, what I announced in my earlier interview, we are having these expansions, like acetonitrile has to go in full swing, DME has to go in full swing, DMF also goes, and N-methylmorpholine comes. Along with this, the greenfield and brownfield expansion of the subsidiary. That entire capacities will come by the 2028-2029.
As I said, by end of this current financial year, all these plants will commence the commercial production. Assuming all these calculations, and some of the, as you rightly said, maybe some calculations of the current prices, even if they decline in the coming years, these new products are coming up, little here and there, definitely between INR 3,500 crore -INR 4,000 crore, we should reach for the top line at 2028-2029.
Great, sir. Thanks for the details. My second and last question. You have been in this business for multiple decades, and after 2020, we saw a huge spike in prices around post-COVID, and then for the next two, three years, prices went significantly down, and again, we are seeing a spike. Is it something a new phenomenon post-2020, or this is how the industry behaves? If we take a reasonably long time, like five-year, six-year tenure, what is the kind of value realization growth we can expect from our blended portfolio?
Do you think if I say Sir Kumar, do you think if I say that this will sustain in this current volatile situation? Because see, before 2020, we have never seen these type of things, the war, the sanctions, all those things we have not seen. Now, from 2020, we have started seeing multiple of different episodes, like pandemic situation we have seen, and we have seen this war, one Ukraine and Russia war we have seen. Now, Iran and U.S.A. war we have seen. So, if the situation comes to the normal position, definitely I feel the prices should come down with a marginal increments, which are natural, that you will see year-on-year, there should be 7%-8% increase. This is my earlier graphics, what we have seen.
Today, the situation, because of these unexpected situations, volatile situations, some of the prices have been doubled, tripled also. I have seen the methanol, I have started my business, when I started the business, I bought at INR 6 methanol. Today, we are talking INR 61, INR 62. So, if the things comes to the normal, definitely it will come somewhere, methanol should come somewhere INR 26, INR 27 is normal, maximum INR 30 should be the normal price. Same way for the ammonia, it has started from INR 25, INR 30, and it went up to today, it is almost INR 85 -INR 90 is ruled today. In normal course, this price should be somewhere INR 45-INR 50, which is outside country like China and other countries are seeing only INR 45-INR 50.
We are paying here today INR 80-INR 90 because of the current situation. The situation is one side, other side the mediators are taking the advantage. Prices they are simply taking, even though they have the stocks, they bought at certain lower prices, simply today somebody says that there is a bomb blast, immediately they will increase the prices. Without looking into their cost price, they will double the prices. That is the situation currently. Sometimes we are worried whether this type of attitude will come to the normal for the mediators in the coming months, we do not know.
Thank you for your question, Mr. Kumar.
That's all. Thank you.
Thank you.
No, I'll come back in the queue. Thank you, sir.
Moving on to the next question. The next question comes from Rajiv Rupani, a private investor. Please go ahead.
Yeah. Good evening, Ram Reddy sir. Diwali greetings in advance to you and your team at Balaji Amines.
Good evening. Same to you and your family.
Sir, my question was regarding the expansion at Unit I and Unit II. Sir, when I visited on June 5th of this year with other analysts, you had informed us the Unit I expansion will be completed by July end. On August 21 PhillipCapital on call, you had intimated us it will be completed by October end. Now in the press release you are giving year-end date. Sir, is there a delay in the brownfield?
I will tell. I think you are not following my full explanation. The reason for the delay, we want to be in the market. The reason we are not closing the full plant. If you see the results, if I close the plant, that Unit I for this brownfield expansion, you will not see any sales. For your information, for any chemical plant, you cannot do both manufacturing and expansions together in the same plant. This is in fact the modifications are happening. We are running 10 - 15 days plant, and 10 - 15 days we are doing these expansion works. Looking into this, there is a demand, there is an opportunity. You have seen, it is such a lower also, you have seen some profit. This quarter also that Balaji Specialty Chemicals has shown some profit in the quarter.
If I not do all these things, then I would have done by July, August we would have done that. What is the use that if you are not taking the advantage of the market? We will have to look at market, what is asking market, basing on that we will have to do it. This time what I am doing, there is only small equipment erections are left, which will be done in one or two cycles. One cycle is now we stopped it. Now we again we are starting the plant manufacturing by 15th of this month. From 15th - 10th, we are going to run the plant. Again, from December 10th maybe month end, we are going to take total finishing the total modifications.
From the January, if everything goes well, from the January onwards, the product should come into the market from the brownfield. Yeah.
Thank you for the update. Also BSCL Unit II, you had said that few products will be launched by December end. Any update on that?
Yeah, that is what we are saying, for the safer side, because logistics, you are aware that some of the equipment, because of this obstructions in the logistics, we are expecting some delay. Otherwise, if everything comes in the normal, you will see that product also from January, and you will see first and second plant will be in the commercial phase. Any delay in the one or two equipments which are in the pipeline, then that may go to up to February, March 1st week.
Thank you for the update, sir. My next question was on DME and ACN. You have updated us on DME that in three, four weeks, PESO, whatever pending approvals of PESO will come. What kind of capacity utilization you see next year for DME and ACN?
DME, if that BPCL and LPG blending permission comes, then it should run more than 90% capacity.
That is for next year?
Yes. Otherwise, if it is not coming, then at least 50%-55%, because the aerosol we have, because outside country, as I said in my earlier answer, we have already given seven to eight ISO tanks we have exported for the aerosol market outside country. We are in talks with several customers outside country. If that comes, and even in India, in the aerosol application, the consumption itself is more than 50,000 tons. Even if we catch 70%, 80% to export and domestic together, we should minimum do 50%-60% capacity in the next year.
ACN, sir? For next year.
ACN? Yes, ACN, this quarter. Another one month, this month, about next two, three weeks, it may take for the taking, going into the full swing. From December onwards, I see, subject to market acceptance, not in the quality, from the quantity point of view. So, we should be in a position to produce minimum 1,000-1,200 tons every month. Minimum.
Thank you . Sir, my next question was on—
Thank you for your questions, Mr. Rajiv. Apologize for interrupting, but we have to move on to the next question. If you have any follow-up questions, please join the queue. Thank you. The next question comes from Diya Jain with Sapphire Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. The DME plant has been commissioned last quarter, so how much revenue is it being recognized in Q2?
I was answering your last questions, same questions. It is, see, because of the PESO, it is not going in full swing. Only exports, as I said, more than six to seven ISO tanks has been exported. Domestic, maybe about 20, 25 cylinders sold for the domestic customers for the aerosol market, and also some of the commercial applications.
Okay, sir. Thank you. I will join back the queue.
Thank you for your question, Diya . We are going to be closing the Q&A session right now. As there are I will now hand the conference over to Akshat Vijay for closing comments. Over to you, Akshat.
Yeah. As there are no further questions from the participants, I now hand over the conference to Mr. Ram Reddy for the closing comments.
Oh, thank you. Thank you, Akshat. Thank you, all the shareholders , investors, stakeholders who are showing the confidence on our company. We will definitely, we will not let you down. As I said, all the expansions are at end position. In any case, by end of this financial year, all the expansions and also towards the capital investment will be closed by end of this financial year. From the first quarter of next financial, you will see only on the utilization, capacity utilization, which plant can take up to 80%, 90%. We will see all the plants take maximum 80%, 90% capacity utilization for one or the other products. Thank you all. Thank you once again for being with us for this conference call. Thank you.
On behalf of Elara Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.