BASF India’s Q4 profit drops 39.53% sequentially as margin slips
Year-on-year margins improved 1.26 percentage points, but the stock fell 8.87% in five sessions.
Filed 19 May 2026, 14:08 IST · BASF India Ltd (BASF)
Key takeaways
- Standalone net profit fell 39.53% sequentially to Rs 63.58 cr as operating margin narrowed 1.12 percentage points.
- Year-on-year, revenue grew 8.28% while expenses rose 6.89%, lifting operating margin by 1.26 percentage points.
- The stock fell 8.87% five sessions after the results, versus an eight-result median absolute move of 3.06%.
Price around the results
Sequential slowdown cuts standalone profit
BASF India’s standalone revenue fell 10.92% sequentially, while operating profit declined 33.88% and net profit fell 39.53%. The sharper profit decline reflects the operating margin narrowing by 1.12 percentage points as expenses contracted less than revenue. Year-on-year, the picture was better: revenue rose 8.28% and net profit increased 34.99%.
Margin improved year-on-year but remains low
Expenses grew 6.89% year-on-year, slower than revenue growth of 8.28%, which lifted operating margin by 1.26 percentage points. Sequentially, expenses fell 9.88% against a 10.92% revenue decline, causing margin to narrow. Other income contributed 13.77% of pre-tax profit, while the 1.93-percentage-point year-on-year fall in the tax rate also supported net profit growth.
BASF India ranks near the bottom among reporting peers
Operating margin was 15.53 percentage points below the 18.77% median for 51 Commodities-sector peers that had reported the same quarter. BASF India ranked second from the bottom on this measure. Across recent quarters, margin moved from 5.91% in Q1FY26 to 3.93% in Q2FY26, recovered to 4.36% in Q3FY26, and then fell to 3.24% in Q4FY26.
Post-results decline was larger than BASF India’s usual move
The stock slipped 0.56% on the results date, then fell 5.43% after one session and 8.87% after five sessions. That five-session decline was larger than the stock’s 3.06% median absolute move across its last eight results, although the historical reactions were evenly split between four rises and four falls.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,453 cr | ₹3,877 cr | -10.92% | +8.28% |
| Other income | ₹12 cr | ₹11 cr | +7.37% | -72.85% |
| Expenses | ₹3,341 cr | ₹3,707 cr | -9.88% | +6.89% |
| Operating profit | ₹112 cr | ₹169 cr | -33.88% | +76.87% |
| Operating margin (%) | 3.24% | 4.36% | — | — |
| Interest | ₹2 cr | ₹5 cr | -48.17% | -31.92% |
| Depreciation | ₹37 cr | ₹34 cr | +6.97% | -4.65% |
| Profit before tax | ₹85 cr | ₹141 cr | -40.11% | +31.51% |
| Tax | ₹21 cr | ₹36 cr | -41.79% | +22.00% |
| Net profit | ₹64 cr | ₹105 cr | -39.53% | +34.99% |
| EPS (₹) | ₹14.70 | ₹24.30 | -39.51% | +34.86% |
Operating margin of 3.24% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.56% | -0.43% |
| Next session | -5.43% | — |
| 5 sessions | -8.87% | -9.99% |
| 15 sessions | -14.24% | — |
| 30 sessions | -5.06% | — |
Volume on the results session was 6.65× its 20-day average.
What to watch
- Whether operating margin recovers from 3.24% after the Q4FY26 sequential decline.
- Whether revenue moves back toward the Q3FY26 level of Rs 3,876.54 cr.
- Whether other income’s 13.77% share of pre-tax profit reduces in the next quarter.