BASF India margin rebound drives 162% profit jump
Revenue growth outpaced expense growth both year on year and sequentially, though the 10.46% operating margin remained 8.81 percentage points below the sector median.
Filed 04 Aug 2026, 13:57 IST · BASF India Ltd (BASF)
Key takeaways
- Consolidated operating margin rose 4.94 percentage points year on year to 10.46% as revenue grew 24.51%, faster than expenses at 18.01%.
- Net profit jumped 162.22% year on year to Rs 360.29 cr despite a 0.78 percentage-point rise in the tax rate, while other income contributed only 4.63% of pre-tax profit.
- The stock rose 4.57% after the results, well above its 1.55% median absolute move across eight previous result reactions.
Price around the results
Revenue acceleration lifted operating profit
Consolidated revenue rose 24.51% year on year, while expenses increased 18.01%, allowing operating profit to grow 135.77%. Sequentially, revenue growth accelerated to 40.08% and again outpaced expense growth of 29.62%, lifting operating margin by 7.23 percentage points. Other income was 4.63% of pre-tax profit, so it was not the main source of the earnings increase.
Profit growth was not tax-led
Net profit grew 162.22% year on year as pre-tax profit rose 155.90%, even with the tax rate increasing 0.78 percentage points to 27.57%. Interest expense rose 6.98% year on year and 115.29% sequentially, while depreciation increased 1.68% year on year and 12.93% sequentially, but neither offset the operating improvement.
Margin rebounded from the Q4FY26 low but trails peers
The 10.46% operating margin recovered from 3.23% in Q4FY26 and 5.52% a year earlier, reversing the deterioration seen from Q1FY26 through Q4FY26. BASF India’s margin was 8.81 percentage points below the 19.27% median among 51 reported Commodities-sector peers, placing it seventh from the bottom.
Market reaction was unusually positive for this stock
The stock gained 4.57% after the consolidated results. That was larger than the 1.55% median absolute move across its eight previous result reactions, during which it rose three times and fell five times.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,824 cr | ₹3,444 cr | +40.08% | +24.51% |
| Other income | ₹22 cr | ₹11 cr | +99.37% | +16.25% |
| Expenses | ₹4,320 cr | ₹3,333 cr | +29.62% | +18.01% |
| Operating profit | ₹504 cr | ₹111 cr | +353.58% | +135.77% |
| Operating margin (%) | 10.46% | 3.23% | — | — |
| Interest | ₹5 cr | ₹2 cr | +115.29% | +6.98% |
| Depreciation | ₹41 cr | ₹37 cr | +12.93% | +1.68% |
| Profit before tax | ₹480 cr | ₹83 cr | +475.55% | +155.90% |
| Tax | ₹132 cr | ₹21 cr | +539.71% | +163.42% |
| Net profit | ₹360 cr | ₹69 cr | +423.07% | +162.22% |
| EPS (₹) | ₹83.30 | ₹16.00 | +420.62% | +162.78% |
Operating margin of 10.46% compares with a Commodities sector median of 19.27% across 51 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.57% | +5.21% |
Volume on the results session was 45.13× its 20-day average.
What to watch
- Whether operating margin remains above the 10.46% reported in Q1FY27.
- Whether expense growth stays below the 24.51% year-on-year revenue growth recorded this quarter.
- Whether other income remains a limited contributor relative to the 4.63% share of pre-tax profit.