Balaji Amines Ltd. — Call Transcript 2025

Nov 18, 2025

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18[th] November, 2025

To, The General Manager-Department of The Manager-Listing Department, Corporate Services, National Stock Exchange of India Limited, BSE Limited, "Exchange Plaza", 5[th] Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001. Bandra (East), Mumbai – 400 051.

Scrip Code : 530999

Symbol : BALAMINES

Dear Sir/Madam,

Sub.: Submission of Earnings Call Transcript under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Transcript of Q2FY2026 Earnings Conference Call held on Wednesday, 12 November 2025.

The transcript of the said Earnings Call is also available on the website of the Company at https://www.balajiamines.com/investor-relations.php.

This is for your kind information and records.

Thanking you.

Yours faithfully,

For Balaji Amines Limited

ABHIJEET Digitally signed by ABHIJEET KOTHADIYA KOTHADIYA Date: 2025.11.18 15:10:42 +05'30'

Abhijeet Kothadiya Company Secretary & Compliance Officer

Encl.: a/a

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“Balaji Amines Limited

Q2 FY '26 Earnings Conference Call”

November 12, 2025

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– – MANAGEMENT: MR. D. RAM REDDY MANAGING DIRECTOR BALAJI AMINES LIMITED

– MODERATOR: MR. GAGAN DIXIT ELARA SECURITIES

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Balaji Amines Limited November 12, 2025

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Moderator:

Ladies and gentlemen, good day, and welcome to Balaji Amines Limited Q2 FY '26 Earnings Call hosted by Elara Securities India Private Limited. As a reminder, all participants' line will be in 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 touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Gagan Dixit. Thank you, and over to you, sir.

Gagan Dixit:

D. Ram Reddy:

A very warm welcome to everyone to discuss Balaji Amines Q2 FY '26 results. It is our pleasure to be able to bring to you the management of Balaji Amines Limited led by Mr. D. Ram Reddy, who is the Managing Director. So with these words, I would now hand over the conference to the Balaji Amines management. Over to you, sir.

Good afternoon, everyone. I extend a warm welcome to all our investors and stakeholders joining us to discuss the performance of Balaji Amines Limited for the quarter and half year ended September 30, 2025. During Q2 and H1 FY '26, our performance reflected stability amidst evolving demand dynamics across end user sectors. The quarter witnessed a mixed operating environment characterized by steady commodity prices and moderated demand in select pharma and agrichem segments.

Despite these external challenges, we sustained healthy margins and maintained volumes at levels comparable at last year, underscoring the strength of our diversified product portfolio and efficient operations. On a consolidated basis, revenue from operations from Q2 FY '26 stood at INR341 crores as compared to INR358 crores in Q1 FY '26. And EBITDA came in at INR67 crores with margins improving to 19% against 17% in Q1 FY '26. Profit after tax was INR37 crores as compared to INR37 crores in the previous quarter.

For H1 FY '26, consolidated revenue stood at INR715 crores, while EBITDA was INR131 crores, translating into an EBITDA margin of 18%. PAT for the half year stood at INR74 crores with PAT margin at 10%. Operationally, total volumes for Q2 FY '26 were 26,165 metric tons, broadly steady year-on-year. Within this, amines volumes were 7,685 metric tons, amines derivatives at 8,374 metric tons and specialty chemicals at 10,107 metric tons.

On a stand-alone basis - We continue to remain a zero debt company with a healthy cash position and prudent working capital management.

Looking ahead, we anticipate a gradual improvement in operating performance over the coming quarters as new capacities move closer to commissioning our DME plant at Unit 4 and N-Methyl Morpholine projects are advancing well and are expected to be commissioned during FY2025-26. While the acetonitrile expansion based on an improved process is on track for commissioning in FY2026-27. All ongoing projects are being funded through internal accruals, reinforcing our strong balance sheet and prudent financial management.

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Balaji Amines Limited November 12, 2025

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Our subsidiary, Balaji Specialty Chemicals Limited is making steady progress on its INR750 crores expansion plan, which has been granted mega project status under the Maharashtra government's Package Scheme of Incentives 2019. The expansion encompasses a wide range of specialty products, including hydrogen cyanide, sodium cyanide, and EDTA and EDTA-2Na among others. The Unit 1 brownfield expansion for EDA-based products is expected to be commissioned by September 2026, while the Unit 2 greenfield project at Chincholi is progressing with equipment installation underway and expected commissioning by December 2026.

On the capacity front, the ramp-up of our electronic grade DMC and pharma-grade propylene glycol lines remains a key strategic lever, while the financial contribution from these new segments is expected to be more visible in the coming quarters. They are aligned with the broader import substitution theme in India and will strengthen our long-term growth visibility. Given the prevailing global uncertainties, near-term utilization levels for some of our newly commissioned assets may remain below optimum.

However, the medium- to long-term outlook remains positive, supported by expanding applications in downstream sectors, import substitution opportunities and India's growing demand for specialty intermediates. Our near-term focus remains on operational execution and achieving stable realizations, while our long-term growth strategy is anchored around product diversification, process innovation and sustainable manufacturing practices.

We continue to prioritize high-value products, disciplined capital allocation and capacity utilization as key drivers of growth and margin resilience. In summary, while FY '26 began with a measured pace and second half is expected to reflect gradual traction as new capacities are commissioned and demand from core end markets strengthens, our investments in R&D, cost optimization and green chemistry initiatives continue to fortify our positioning as one of India's leading manufacturers of specialty chemicals.

Now I will leave the forum for the question and answers.

Moderator:

Sheetalkumar Shah:

D. Ram Reddy:

Sheetalkumar Shah:

D. Ram Reddy:

Sheetalkumar Shah:

Thank you very much. The first question is from the line of Sheetalkumar Shah, from Sameeksha Capital. Please go ahead.

My first question is on DME. So what is the status of our LPG blending?

The LPG blending, we've already given to the government. It is in the moving table to table in the Government of India. And in the meantime, we are also taking the PESO approvals for the cylinder as well as road tankers.

And how much DME is required in aerosol industry?

It's approximately about 30,000, 35,000 tons we are estimating presently. And we hope -- this being a greener gas, we hope there will be good opportunities in the aerosol.

And have we received any acceptance or approval from our customers?

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D. Ram Reddy:

That is once we receive the cylinder approval, that is just recently, we received that valve approval for the cylinders about 15 days back. So we expect that in coming 2 or 3 weeks, that cylinder permission will receive. The moment we receive the cylinder permission, the plant will be commissioned, then the sample in the cylinders will be submitted to the aerosol customers.

Sheetalkumar Shah: Understood. And my other questions are on DMC and PG side. So what is the capacity utilization on our EV-based products?

D. Ram Reddy: See, DMC, again, these battery manufacturers are yet to take the -- into full swing. So we are operating at 20% capacity, which is to other fields, other than the battery front. And PG, we are presently giving technical and food-grade PG to various customers. We have applied for the pharma grade PG. So the moment we get the license, we'll start the manufacturing of the pharma grade.

Sheetalkumar Shah:

And what about NMP.

D. Ram Reddy: NMP, we are already there, that we are ready with the battery grade NMP. And we have given some trial batches also to the 1 or 2 battery manufacturers.

Sheetalkumar Shah: So what are the challenges faced by our domestic EV battery manufacturers? Why we are not able to ramp up?

D. Ram Reddy: It's very difficult to tell to me. We will have to understand from them only. In fact, we are also waiting for their gearing up into full swing. The moment they start, we are ready with all our manufacturing battery-grade NMP and even battery grade DMC also.

Sheetallkumar Shah: And any expectations in terms of time line. D. Ram Reddy: They are saying that -- somebody says that by December and somebody says that from April onwards, they will be requiring bulk quantities. We were just waiting for their kick start.

Sheetalkumar Shah: Understood. And my last question is on acetonitrile prices. So how they have moved in the last 6 months?

D. Ram Reddy: See, we have existing plant, we are running on and off because we are doing the modifications in the existing plant, and when we are doing it, we are not operating -- hardly, we are doing about 5% or 10% because we are changing the equipment for the latest technology. And as per the latest technology, we are going to produce the very high-purity material at a low-cost -- manufacturing cost, which will take at least first quarter of the next financial year.

Sheetalkumar Shah: But has the prices have improved or has remained stable or what's the status there in terms of pricing?

D. Ram Reddy: It's stable around INR140 to INR150.

Moderator: The next question is from the line of Ashish Menon from Value Research.

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Ashish Menon:

Yes. In the previous earnings call, you had stated that we would be expecting at least 10% to 12% volume growth for FY '26. Given that in the first half, the volumes have declined by 1%, how confident are you of achieving the 10% volume growth for the full year? And also, could you shed some light on what makes you confident of clear signs of inflection emerging in the second half of the year?

D. Ram Reddy: See, we were waiting for these approvals for the 2 things. One is the dimethyl ether PESO approvals and other blending applications. When the moment that comes, we will commission the plant by the -- before end of this quarter. And secondly, the DMC, which goes for the battery, that also we were expecting that the battery manufacturers will go in full swing, but not yet started.

Thirdly, PG for pharma, we are waiting for the approval from the authority. The moment we get -- these were the 3 things which we expected that to get the at least minimum 8% to 10% growth. But however, we expect these things will come in this quarter. And I hope that definitely 8% to 10% volume growth should be there in this next half year.

Ashish Menon: Understood. So in Balaji Specialty, so once the Unit 1 brownfield project is completed, would the entire 37,000 tons per annum capacity of EDA be utilized for value-added products, assuming there are no demand challenges? Or would there still be some volumes which is left that we would need to sell in the market?

D. Ram Reddy: We are going to sell present 22,000 tons of the EDA. We will be utilizing almost 15,000 to 16,000 tons. There will be hardly 6,000 tons available for the selling into the market. Ashish Menon: So is there any update on the antidumping investigation that is going on regarding EDA? So has the oral hearings...

D. Ram Reddy: We had an oral hearing. And there was this thing, one officer is retired -- the officer who was investigating this has retired. Now the case has been allotted to a new officer. Probably this month end, we should get another hearing. And maybe by end of the next month, we should be in a position to get some results on the antidumping for the EDA.

Ashish Menon: So one of your pharma customers, they have backward integrated into methylamines for captive consumption with the excess that they have, they will be selling into the market. So how much does that impact your revenues as well as the overall pricing and demand in the market?

D. Ram Reddy: I have not seen a major impact as of now. I don't know whether they have commissioned the plant. They are yet to commission the plant. But we have not seen any major impact to us. And secondly, that plant locationally, it is in the, I think, Gujarat. And our major customers towards this Maharashtra and South. So we have not seen any major impact as of now, even price point of view and the capacity point of view also.

Ashish Menon: Understood. Another thing regarding ethylene diamine. So have we considered using ethylene oxide route instead of the ethylene dichloride route for making EDA? So I'm thinking more from the cost perspective in order to remain competitive.

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D. Ram Reddy: In fact, we are using ethylene oxide route only. We use the ethanolamine, which is manufactured with ethylene oxide, not what you're talking EDC, use ethylene oxide only.

Ashish Menon: Understood. And in your opening remarks, you mentioned something about green chemistry initiatives. So could you shed some light on -- yes.

D. Ram Reddy: See green chemistry, as of now, we have installed a solar on the rooftop as well as we have a separate solar park for the company. As of now, almost 80% of the manufacturing will take care of by the solar power.

Moderator: Next question is from the line of Viral Jain from SM&G Finance.

Viral Jain: So my first question was regarding the international market. So could you give us more clear picture on the export momentum and whether there was any logistical or pricing challenge that was affecting the competitiveness in the overseas market?

D. Ram Reddy: Yes. There was some back period where we were facing the freight hit -- higher freight hit for the logistics for the exports. But as of now, it's now stable. And because of the -- some of the pharma and agro industries a little lower, we could not achieve what we expected. But we expect in the coming quarters, definitely, it should move further to the export market also.

Viral Jain: Got it. And are we seeing any long-term contracts or supply agreements being renewed or expanded in the international market?

D. Ram Reddy: Yes. Some of the contracts which we are doing like U.S. and Europe, we have continued, or we got the signals for the continues coming financial year also for the exports to the U.S. and Europe.

Viral Jain: And my last question was regarding the financial aspect. So what is the current working capital cycle? And are we facing any issues with the receivable or inventory building up given the demand normalization?

D. Ram Reddy: No, we are -- it's almost normal only. We are not facing any problem as of now. The normal 60 to 90 days cycle is taking place, which is very normal in the pharma and agro market. We don't see any difficulties.

Moderator: The next question is from the line of Varun Mishra from SK Investments.

Varun Mishra: So I wanted to ask a couple of questions. So what is the current utilization level at our Unit 4 plant and any like -- and the new plants of our Specialty Chemicals segment?

D. Ram Reddy: See one that major is methylamines, which is almost 80%, 85% utilization is there. Methylamines yet to take full swing. butylamine presently, it is used about 30%, 35%. As I said earlier for the dimethyl carbonate and PG, that is about 20% to 30% because the battery manufacturing units yet to start their manufacturing in full swing.

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Varun Mishra:

All right, sir. And like could you provide an update on the progress like in commissioning time line upon like the upcoming projects, particularly any greenfield expansions are we planning or any backward integration initiatives that we're taking?

D. Ram Reddy: I will tell you. #1, that N-methylmorpholine, which will be commissioned by the end of this current quarter. #2, dimethyl carbonate is again ready for the commissioning. This is also commissioned by the first quarter of the – first week of the next quarter. These are the 2 in the pipeline ready for the commissioning. Of course, DMC electronic grade, we just recently -- battery grade recently commissioned, but we are waiting for the customers to start their end.

Varun Mishra: Right, sir. And like, sir, upon all the expansions are operational, we see like in the next 2 quarters, we can expect that. So like what could be the company's overall capacity in terms of production and like what could be the incremental potential revenue as per you, if you could just guide on that?

D. Ram Reddy: There should be -- if all plants commission and all plants run at the optimum capacity levels. So there should be -- minimum 15% growth should be there, values and as well as the volumes also.

Varun Mishra: So like growth in terms of -- as of FY '26 or like within a year's time, how is it?

D. Ram Reddy: Next coming year, I'm talking because most of the plants, the commissioning will take place by the end of this financial year. So next financial year, there will be a minimum 15% growth we can see.

Moderator: The next question is from the line of Dhiraj Shah from RJ Investment.

Dhiraj Shah: Congratulations on decent set of numbers. So I have a couple of questions. Firstly, how are your realizations trending across your major product lines given the volatility in raw material prices, especially in methanol and ammonia?

D. Ram Reddy: Thank you for understanding, Mr. Dhiraj. Very sensible question you asked. See, there is a volatility in the methanol in the recent days and even ammonia also. In spite of all these things, we could do the average of the -- because there were some raw materials in the pipeline at a lower cost.

And now the methanol prices have started settling around -- below INR30. And ammonia is also somewhere INR47, INR48. So I think it should continue with this trend. Even methanol goes down further, we will have the doors open for the more international markets. And there, we get more of the volumes exported and even the margins also can be improved in the coming quarters.

Dhiraj Shah: Understood. Also, sir, are you witnessing any pricing pressures from particularly Chinese imports? And how are you defending margins in such a competitive environment?

D. Ram Reddy: See, we -- majority of the products, we don't compete, only 1 or 2 products we compete with them. We are still competing that is one dimethylformamide. We are competing for the last several years, and we will continue to compete with them on and off. As you rightly say, sometimes going down and sometimes prices opportunity is getting it.

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And as you are there in the -- continuous in the market, you will not get those opportunities to encash. So we are -- all other products, there is no problem. Only dimethylformamide, we are facing little problems in the competition.

Dhiraj Shah: Understood. And lastly, sir, if you see gross margins have fluctuated in recent quarters. So what is the sustainable EBITDA margin range you expect in the near term given current input costs and capacity utilization level? Could you guide us on that, that would be helpful.

D. Ram Reddy: See, with a reasonable EBITDA, we should be in a position to maintain 20% to 22%. And with the lowest, it should be 17.5% to 18% and maximum is 24%, what we can see in the current competitive environment.

Moderator: Next question is from the line of Vivek Gupta from Star Investment.

Vivek Gupta: So could you please elaborate on the current demand environment across your key products categories like amines, derivatives and specialty chemicals, both in the domestic as well as the export market?

D. Ram Reddy: The domestic market on the main products like amines and intermediates, it's stable, what we can see. In the exports, there is a little volatility because of -- in some of the products, direct tariff and some of the product indirect tariff for the end users in the domestic market. But overall, we can see the 80% to 90% is a stable market we are seeing.

Vivek Gupta: Also, sir, have you started witnessing signs of recovery in customer offtake, particularly from pharma and agrochemical segments, which are muted over the past few quarters?

D. Ram Reddy: Yes. Slowly, it is picking up. We hope that it should pick up to the normal level unlike last 1, 2 quarters, as you rightly said, it is very slow in the pharma front. And we expect the -- since it has started improving slowly, we expect in coming quarters, there should be improvement and come back to the normal levels.

Moderator: The next question is from the line of Nilesh Ghuge from HDFC Securities.

Nilesh Ghuge: Sir, my question is on this -- our specialty -- Balaji Specialty. So what is the current utilization -- plant utilization? And how do you see it is planning out, let's say, in second half of FY '26 and FY '27?

D. Ram Reddy: See, current utilization is very low because the brownfield work is going on, on the plant. The brownfield activities are on the same plant. That is the reason - we are running 15 days and 20 days, we are working on the expansions and the modification in the plant, so this will continue for the another -- this quarter and end of the next quarter also.

We expect that starting of the next financial year, this brownfield will finish. Then we will see the actual capacity utilization of the Unit 1. And also in the second quarter of the next financial year, we expect the Unit 2 expansions will start -- at least 1 or 2 plants will start commencing the production.

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Nilesh Ghuge:

So see, if I look at the first half revenue from your subsidiary is about, let's say, INR70 crores, plus or minus INR1 crores here and there. So how do you see in FY '26, because of this brownfield expansion and everything, where do you see that subsidiary revenue numbers or number.

D. Ram Reddy:

It will be same whatever we have done half yearly. If something goes good and we -- that antidumping comes, there may be improvement in the bottom line and all. Otherwise, the real benefits you will see only after completing these modifications, whereby we get all the valueadded products manufactured and the margins and even the sales also will improve in the coming financial year.

Nilesh Ghuge: You mean the cyanide and the downstream products, that is what you mean, right?

D. Ram Reddy: No, even in the brownfield also, brownfield also that TETA, TEPA, DETA and PIP

Nilesh Ghuge: And sir, on this acetonitrile, there is an antidumping imposition by Ministry. Have you seen any change in the prices? And how do you see the demand? I know that your expansion is coming next year, but still...

D. Ram Reddy: I'll tell you there also story is the same because we are running 10 days, and we are doing the modifications work in the same plant, every 10 days, we just stop the plant; 20 days, you work; another 10 days, you start the manufacturing. And the prices are the same around INR140, INR150 level the prices are there. And we have keep maintaining the inventory, producing the 10 days and maintaining the inventory.

But we expect -- once it is done, because of the new technology, we expect a very cost-effective product will be produced in that plant and even the quality point of view and the cost point of view also, we expect there should be good margins to come from the ACN in the next financial year.

Nilesh Ghuge: The margin compared to the domestic or any other player because of this process innovation, process -- different process, right? Is my understanding correct?

D. Ram Reddy: You're right.

Nilesh Ghuge: Yes. And sir, anything on this demand, particularly there is a news articles on the acetonitrile demand because of this new GLP drugs. So have you seen that demand or maybe the inquiries from pharmaceutical companies on this acetonitrile? And do you see that volume uptake, not maybe in 6 months or 9 months, but maybe going ahead, let's say, FY '28, '29 with the new products, drug coming.

D. Ram Reddy: Definitely, what we can see, even not only that, because of this cost-effective product and it's a user-friendly solvent for the pharma industry. So definitely, we expect that there will be a minimum growth of 7% to 8% consumption point of view for the acetonitrile in the domestic market.

Nilesh Ghuge:

But you are not looking at the export market. Are we open for that or...

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D. Ram Reddy:

Yes, yes. We are doing. Yes, we are doing very small. We are just doing the seed marketing. We are doing exports also. If you see the data, we are doing monthly 1 or 2 ISO tanks because we are doing very small quantity because of these brownfield modifications. Once we commence that 60 tons per day capacity, then definitely, you will see the exports as well as domestic also.

Moderator:

Ladies and gentlemen, that was the last question for today. We have reached the end of the question-and-answer session. I would now like to hand the conference over to management for closing remarks.

D. Ram Reddy: Thank you. Thank you very much to all our shareholders, stakeholders who have shown the interest, who are long with the company, who have given the confidence on us. We'll definitely do well in the coming quarters. Thank you once again being with us. Thank you very much.

Moderator: On the behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Gagan Dixit:

Yes. Thanks. Thanks, everyone.

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