At a Glance

BASF India, the chemical behemoth with German DNA, posted Q1 FY26 revenue of ₹3,752 Cr (-5% YoY) and PAT of ₹147 Cr (down 30% YoY). Margins bounced to 6% from last quarter’s 2% (thank god for that). At P/E 53x, the stock is priced like premium perfume but delivers performance like a budget deodorant. Investors? Nervous. Management? Betting on renewables and acquisitions.

Introduction

Picture a six-headed dragon (Agro, Materials, Industrial, Surface Tech, Nutrition & Care, Chemicals) trying to breathe fire in a rainstorm. That’s BASF India in FY26 Q1. Global headwinds, raw material volatility, and a weak demand cycle have left profits wobbling. Yet, being part of BASF SE gives it a global edge and R&D muscle that smaller Indian players only dream of.

Business Model (WTF Do They Even Do?)

• Agri Solutions: Seeds, crop protection – farmer’s friend.
• Materials: Polyurethanes, engineering plastics – everything from cars to fridges.
• Industrial Solutions & Chemicals: Essential inputs for pharma, food, packaging.
• Surface Technologies: Coatings for autos, construction.
• Nutrition & Care: Ingredients for personal care products.

BASF India is basically everywhere chemicals touch your life – except making meth (sorry, Breaking Bad fans).

Financials Overview

Q1 FY26

• Revenue: ₹3,752 Cr
• EBITDA: ₹222 Cr (OPM 6%)
• PAT: ₹147 Cr
• EPS: ₹34

FY25 Recap

• Revenue: ₹15,162 Cr (+10% YoY)
• PAT: ₹499 Cr (-11% YoY)
• ROE: 13.7%
• ROCE: 18%

Comment: Topline stable, profits swinging like a pendulum due to input cost volatility.

Valuation

1. P/E Method
   • EPS (TTM): ₹98
   • Industry P/E: 40x
   • Fair Value ≈ ₹98 × 40 = ₹3,920
2. P/B Method
   • BV: ₹845
   • P/B typical for chemicals: 4x
   • Fair Value ≈ ₹3,300
3. DCF:
   • Conservative growth assumptions → ₹3,500 – ₹4,200

🎯 Fair Value Range: ₹3,300 – ₹4,200
CMP ₹5,016 is stretched like a rubber band near breaking point.

What’s Cooking – News, Triggers, Drama

• Acquisition: 26% stake in Clean Max Amalfi – green energy play.
• Trigger: If crude prices ease and global demand rebounds, margins can surprise.
• Drama: FY25 saw profit declines, making FY26 a redemption year… if it delivers.

Balance Sheet

Remark: Strong equity, negligible debt – BASF is a fortress with R&D weapons.

Cash Flow – Sab Number Game Hai

Remark: Healthy ops cash, investing in growth, financing cash outflow controlled.

Ratios – Sexy or Stressy?

Remark: Valuation rich, returns moderate.

P&L Breakdown – Show Me the Money

Remark: Growth in sales, but profits refuse to keep pace.

Peer Comparison

Remark: BASF trades like a specialty chemical player but margins are bulk chemical levels.

Miscellaneous – Shareholding, Promoters

• Promoters (BASF SE): 73.3%
• FIIs: 4.2%
• DIIs: 6.3%
• Public: 16.1%

Observation: Solid promoter backing, minimal retail froth.

EduInvesting Verdict™

BASF India is a giant chemical cocktail – diversified, global-backed, and debt-light. However, its earnings volatility, rich valuations, and slow margin expansion make it less exciting than peers like Deepak Nitrite or Gujarat Fluoro.

SWOT Quickie

• Strengths: Global tech, diversified portfolio, zero-debt balance sheet.
• Weaknesses: High P/E, low payout, profit volatility.
• Opportunities: Green energy expansion, domestic demand growth.
• Threats: Global recession, raw material inflation, regulatory risks.

Final Word: BASF is safe but pricey. Great for long-term compounders, but short-term? You’re paying for a brand, not bargains.

Written by EduInvesting Team | 30 July 2025
SEO Tags: BASF India Q1 FY26 Results, Chemical Sector Analysis, BASF Stock Valuation