BASF India FY 2025-26: Stable Revenue, Softer Profit, and a Busy Year of Restructuring and Capacity Moves

BASF India Limited used its May 2026 analyst and fund manager meeting to frame FY 2025-26 as a year of resilience under pressure. The numbers show a business that held revenue broadly steady while profitability and cash generation softened. Consolidated revenue for the year ended March 31, 2026 was INR 15,539 crore, up 2 percent from INR 15,260 crore in the prior year. But profit before tax before exceptional items declined to INR 564 crore from INR 617 crore, down 9 percent.

Management attributed the year-on-year outcome to higher input costs and product mix, even as volumes improved. The company also highlighted a sharp improvement in the March 2026 quarter versus the same quarter last year. Jan to Mar 2026 revenue rose 10 percent to INR 3,606 crore, while PBT before exceptional items increased to INR 90 crore from INR 25 crore, which management linked to higher volumes and better margins.

At the same time, BASF India signalled that the operating environment remained sensitive. The presentation cited the West Asia crisis as a source of feedstock inflation driven by oil and gas prices, route disruptions that increased ocean freight, and INR depreciation. It also noted that a prolonged crisis could drag growth.

What the revenue mix says about the portfolio

BASF India’s segment data for FY 2025-26 illustrates a broad portfolio with no single segment exceeding one third of revenue. Total segment revenue was INR 15,539 crore. Materials was the largest contributor at INR 4,625 crore or 30 percent. Nutrition and Care was next at INR 3,501 crore or 23 percent. Industrial Solutions generated INR 2,946 crore or 19 percent.

Agricultural Solutions contributed INR 1,944 crore or 12 percent, while Chemicals contributed INR 1,847 crore or 12 percent. Surface Technologies, marked as discontinued operations in the presentation, contributed INR 595 crore or 4 percent, and Others contributed INR 82 crore.

Year-on-year segment revenue movement was mixed. The revenue development table shows Nutrition and Care up 5 percent and Industrial Solutions up 24 percent. Surface Technologies declined 6 percent, Agricultural Solutions declined 7 percent, Chemicals declined 6 percent, and Materials declined 24 percent. The overall total revenue still grew 2 percent.

Profitability: improvements in some segments, pressure in others

The segment profit bridge provides more context. Industrial Solutions improved PBT before exceptional items to INR 185 crore from INR 158 crore, up 17 percent. Materials moved to a small profit at INR 3 crore from a loss of INR 7 crore. Others and unallocated was shown at INR 27 crore.

On the other hand, Nutrition and Care declined to INR 254 crore from INR 311 crore, down 18 percent. Chemicals dropped sharply to INR 31 crore from INR 65 crore, down 52 percent. Surface Technologies declined to INR 29 crore from INR 36 crore.

The most visible stress point was Agricultural Solutions, which reported a loss. PBT before exceptional items for Agricultural Solutions was minus INR 92 crore for Apr to Mar 2026, compared with minus INR 42 crore in the previous year.

This segment profit picture aligns with the macro risk discussion, especially for agriculture. The presentation explicitly flagged that the West Asia conflict could affect Indian agriculture through fertilizer supply risk and cost inflation, supply chain disruption impacting crop protection product availability, export disruptions for agricultural produce, and pressure on farm profitability that could reduce input usage.

Working capital and cash flow: the key operational watch-out

BASF India’s KPI slide indicates a rise in working capital intensity. Receivable days increased to 65 in FY 2025-26 from 62 in FY 2024-25. Inventory days increased to 82 from 72. Operating expenses as a percentage of revenue also increased to 13.7 percent from 12.3 percent.

The net working capital chart shows NWC at INR 1,885 crore as of March 2026, higher than INR 1,316 crore as of March 2025, though lower than the peak levels seen in September 2025. The presentation also quantified that discontinued operations contributed an NWC of INR 85 crore as of March 2026.

The most direct indicator of pressure is operating cash flow. Cash flow generated from or used in operations was minus INR 110 crore in FY 2025-26 versus positive INR 373 crore in FY 2024-25. The presentation does not provide a detailed reconciliation, but the higher receivable and inventory days, combined with the NWC build during parts of the year, are consistent with weaker cash conversion.

Capacity and footprint: Dahej and Mangalore projects

While the financial performance section focuses on margins and working capital, the “key updates” section emphasises footprint strengthening.

The company highlighted steps for capacity enhancement for Cellasto at its Dahej site. The timeline is specific: groundbreaking in January 2025 and building completion in May 2026. The presentation describes Cellasto as a microcellular polyurethane used to cushion, dampen vibration, and reduce noise, serving automotive, industrial, railway, and other sectors. The framing suggests BASF wants a stronger local supply position for this portfolio.

A second project is a new dispersions line at BASF’s Mangalore site, with a groundbreaking in February 2026. The stated customer application areas are architectural paints, construction chemicals, and paper applications. The slide positions this as strengthening BASF’s local production footprint in India.

Corporate actions: agriculture demerger and coatings transaction

The presentation includes two major structural developments that investors will track through FY 2026-27.

First is the proposed demerger of the agricultural products business from BASF India Limited into a separate listed legal entity, BASF Agricultural Solutions India Limited. The presentation provides a regulatory timeline: SEBI and stock exchanges issued no objection letters on February 2, 2026, applications were filed with the National Company Law Tribunal on February 16, 2026, and on April 8, 2026 the NCLT passed orders dispensing with the creditors meeting and directing convening of a shareholders meeting.

The shareholders meeting was fixed for June 24, 2026, with voting from June 19 to June 23, 2026. The share entitlement ratio is stated as 1 to 1. BASF indicated the demerger is expected to be completed during FY 2026-27, followed by allotment and listing of BASIL shares.

Second is an update on the India coatings business. BASF stated that the automotive OEM coatings and automotive refinish coatings business has been carried out under BASF India Coatings Pvt Ltd, a wholly owned subsidiary, since January 1, 2025. As of March 31, 2026, the business generated sales of INR 595 crore, representing 4 percent of consolidated sales.

The presentation states that in India, the valuation of the coatings business is INR 230.16 crore based on an independent valuation. It also states the transaction is expected to close by Q2 of calendar year 2026, subject to customary regulatory approvals, and post closing the subsidiary will cease to be wholly owned by BASF India Limited.

Safety, stewardship, and engagement remain central themes

Beyond the numbers, BASF placed heavy emphasis on safety and external engagement. The EHS update states there were no high severity incidents and no process safety incidents from Apr 2025 to Apr 2026, with two lost time injuries over the same period. It also mentioned continued focus on improving safety leading indicators.

In agricultural stewardship, BASF cited cumulative 10-year data for its Suraksha Hamesha program: more than 998,300 farmers trained, over 46,300 women farmers trained, over 133,000 spray men trained, more than 70,500 students covered, participation of more than 7,000 agriculture department officials, and more than 4,000 channel partners reached, along with around 60 million digital outreach.

The presentation also listed multiple customer and industry engagement activities during early 2026, including participation at PlastIndia 2026 and industry conferences. It included a slide on BASF Group establishing two new global hubs in Hyderabad in May 2026, covering Global Digital Solutions and Global Business Services, supported by a letter of intent with the Government of Telangana.

Bottom line

BASF India ended FY 2025-26 with modest revenue growth but weaker profitability and a clear decline in cash generation. The March quarter shows that margins can recover when volumes improve, but the year highlights sensitivity to input costs, product mix, and macro-linked volatility.

At the same time, the company is moving through a high activity period, with capacity additions such as Cellasto at Dahej and a dispersions line at Mangalore, plus significant corporate actions in the agriculture and coatings businesses. For investors, the key questions over the next year will likely centre on working capital control, the execution of the agriculture demerger timeline, and how the portfolio performs under the feedstock, freight, and currency risks the company itself flagged.