BASF India completes sale, separates coatings earnings

BASF India Limited completed the Rs 230.16 crore sale of its coatings subsidiary on June 30, 2026, recorded a Rs 18.15 crore net gain, and separately presented the disposed business as discontinued operations. BASF India reported Rs 409.53 crore of profit after tax from continuing operations for the six months ended September 30, 2026.

What did BASF India sell and when did the transaction close?

BASF India sold its entire 100% holding in BASF India Coatings Private Limited to Bond German BidCo 2 GmbH and Bond France BidCo SAS, identified in the filing as Carlyle Group companies, on June 30, 2026. The board approved the transfer on March 30, 2026 at a consideration of Rs 230.16 crore, determined by an independent valuer and subject to closing adjustments.

The disposal formed part of a wider transaction announced by BASF SE on October 10, 2025 involving automotive original equipment manufacturer coatings, automotive refinish coatings and surface-treatment businesses. The global transaction closed after regulatory approvals on June 30, 2026, and BASF SE holds a 40% equity stake in Surventis, formerly BASF Coatings.

For BASF India, the completion meant BASF India Coatings Private Limited ceased to be a wholly owned subsidiary on June 30, 2026. The filing identifies the sold activity as Surface Technologies, or the coatings business, and removes its subsequent earnings from the continuing-operations figures for the September 2026 quarter.

How much cash and gain did BASF India report from the sale?

BASF India reported Rs 230.06 crore of proceeds from the sale of equity shares of its wholly owned subsidiary, net of expenses, in six-month investing cash flow. This differs from the Rs 230.16 crore agreed consideration because the consideration was subject to necessary closing adjustments, while the cash-flow figure is stated net of expenses.

BASF India recorded a Rs 18.15 crore gain, net of expenses, on selling its 100% equity holding in the subsidiary. The gain was reported under discontinued operations for the six months ended September 30, 2026, rather than within profit from continuing operations.

The discontinued business generated Rs 173.69 crore of total income and Rs 173 crore of total expenses in the six months ended September 30, 2026. Its operating profit before tax was Rs 69 lakh, while the Rs 18.15 crore sale gain and Rs 6.37 crore tax expense resulted in discontinued-operations profit after tax of Rs 12.47 crore.

Why did BASF India classify coatings as discontinued operations?

BASF India classified the Surface Technologies coatings business as discontinued operations under Indian Accounting Standard 105, Non-current Assets Held for Sale and Discontinued Operations. The accounting treatment requires the disposed business’s income, expenses and tax to be separately disclosed, distinguishing the sold operation from the group’s continuing activities.

The classification means the quarter ended September 30, 2026 contained no income or profit from discontinued operations because the sale had closed on June 30, 2026. In contrast, BASF India restated the quarter ended September 30, 2025 after expense allocation, showing Rs 149.56 crore of income and Rs 6.57 crore of profit after tax from the discontinued business.

For the six months ended September 30, 2025, the coatings operation recorded Rs 282.78 crore of income, a loss before tax of Rs 43.20 lakh and a loss after tax of Rs 29.80 lakh. In the year ended March 31, 2026, it reported Rs 594.82 crore of income and Rs 3.87 crore of profit after tax, providing a separated historical comparison for the disposed activity.

What did BASF India's continuing operations report after the exit?

BASF India reported Rs 9,656.45 crore of revenue from continuing operations in the six months ended September 30, 2026, compared with Rs 7,637.09 crore in the restated prior-year period. Continuing profit before tax rose to Rs 563.31 crore from Rs 335.49 crore, while continuing profit after tax increased to Rs 409.53 crore from Rs 247.53 crore.

The September quarter showed higher continuing revenue but lower profit than the restated prior-year quarter. Revenue from operations reached Rs 4,832.19 crore, compared with Rs 3,895.77 crore a year earlier, while profit before tax was Rs 83.07 crore against Rs 135.35 crore and profit after tax was Rs 61.71 crore against Rs 100.58 crore.

The June 2026 quarter accounted for most of the half-year continuing profit, with profit after tax of Rs 347.82 crore, compared with Rs 61.71 crore in the September quarter. The June-quarter total profit was Rs 360.29 crore because it also included Rs 12.47 crore of discontinued-operations profit, including the disposal gain.

What changed in BASF India's balance sheet and cash flow?

BASF India’s September 30, 2026 balance sheet showed no assets classified as held for sale, compared with Rs 490.13 crore at March 31, 2026. Liabilities associated with assets held for sale also fell from Rs 273.63 crore to nil after the coatings sale completed on June 30, 2026.

Total assets rose to Rs 9,098.10 crore at September 30, 2026 from Rs 8,435.64 crore at March 31, 2026, while total equity increased to Rs 4,299.76 crore from Rs 3,957.46 crore. Cash and cash equivalents declined to Rs 555.31 crore from Rs 868.90 crore over the same period, despite the Rs 230.06 crore disposal proceeds.

Working-capital movements contributed to net cash used in operating activities of Rs 356.51 crore in the six months ended September 30, 2026. Trade receivables increased by Rs 717.62 crore and inventories increased by Rs 660.30 crore, while investing activities generated Rs 221.36 crore and financing activities used Rs 151.48 crore.

What is the next disclosed corporate event for BASF India?

BASF India has proposed to demerge its Agricultural Solutions business into BASF Agricultural Solutions India Limited under a Scheme of Arrangement approved by its board on May 14, 2025. The company received no-objection letters from BSE Limited in January 2026 and the National Stock Exchange of India Limited in February 2026.

BASF India shareholders approved the scheme on June 24, 2026 with the requisite majority after the National Company Law Tribunal directed the company to convene an equity shareholders’ meeting within 90 days of its order. The proposed demerger remains subject to requisite approvals, according to the September 2026 filing.

Conclusion

BASF India has completed the coatings exit and separated its effects from the continuing earnings base. The Rs 230.16 crore sale, Rs 18.15 crore gain and discontinued-operations presentation mean the Rs 409.53 crore continuing profit after tax for the September 2026 half year excludes the disposed coatings activity.

The next matter to watch is the Agricultural Solutions demerger, for which shareholders approved the scheme on June 24, 2026. BASF India disclosed that the transaction still requires requisite approvals, leaving the timing and final completion of the proposed separation unresolved.