BASF India Q1 FY27: consolidated PAT surges 162% YoY on Materials margin rebound

BASF India's Q1 FY27 (quarter ended June 30, 2026) consolidated profit for the period surged to ₹360.29 Cr, up 162.2% year-on-year from ₹137.40 Cr and up 423.1% sequentially from a weak ₹68.88 Cr in Q4 FY26. Stripping out the ₹18.15 Cr exceptional gain booked on the sale of BASF India Coatings, adjusted YoY PAT growth is still ~149.0%, confirming the beat is driven by core operations and not the one-off. Revenue from continuing operations (the statement now excludes the divested Coatings business) came in at ₹4,824.26 Cr, up 24.5% YoY over a base of ₹3,874.54 Cr that still included Coatings, and up 40.1% QoQ. Standalone PAT of ₹362.05 Cr is within 0.5% of the consolidated figure, so both bases tell the same story. The expansion is margin-led: consolidated net margin rose to ~7.5% from 3.5% YoY and 2.0% QoQ, while segment operating margin improved to ~10.8% from 5.5% YoY and 3.2% QoQ. The swing is concentrated in two segments — Materials PBIT flipped from a ₹11.62 Cr loss in Q1 FY26 to a ₹212.69 Cr profit this quarter, and Chemicals PBIT rose to ₹96.12 Cr from ₹16.32 Cr — consistent with a recovery in petrochemical/monomer spreads rather than a volume story. That was partly offset by Agricultural Solutions, whose PBIT fell 53% YoY to ₹77.49 Cr from ₹165.39 Cr, and Nutrition & Care, down to ₹11.06 Cr from ₹20.23 Cr. Agricultural Solutions' QoQ swing (from a ₹19.83 Cr loss to a ₹77.49 Cr profit) is a known seasonal pattern the filing itself flags for that segment, so it should not be read as trend confirmation — the YoY decline is the more telling number. Against our pre-result preview, the print is a clear beat: the preview flagged revenue of ₹3,400-3,600 Cr, OPM of 12-14%, and PBT margin of 3-4% for the quarter — actual revenue of ₹4,824 Cr and PBT margin of ~10% both surpass those markers, though OPM at ~10.8% lands modestly below the previewed band. Q1 FY27 basic EPS of ₹83.3 alone is already ~98% of the ₹85.10 FY27 full-year consensus EPS the preview cited, implying either this run-rate isn't sustainable for the full year or consensus needs a material upward revision. Management's prior concall (May 2026) offered no quantitative guidance, only qualitative priorities — protecting margins, executing the Celesto and Dispersion Line 3 expansions, and completing the Coatings and Agricultural Solutions portfolio actions; margin protection was not just met but exceeded, though no company press release with management's own framing of this quarter could be extracted from this filing. On the portfolio actions: the Coatings stake sale (100%, ₹230.16 Cr consideration) completed June 30, 2026 and is booked as an exceptional item/discontinued operation this quarter; the Agricultural Solutions demerger cleared its shareholders' meeting on June 24, 2026 but remains subject to further regulatory approvals per the filing notes. Separately, the company disclosed a 14.18% stake acquisition in Clean Max Galapagos the same day as this result, a renewable-energy investment not reflected in this quarter's P&L. Going into Q2 FY27, the key monitorables are whether the Materials/Chemicals spread recovery holds, the final terms and timeline of the Agricultural Solutions demerger, and whether full-year consensus estimates get revised given this quarter alone already captured most of the previously flagged FY27 EPS estimate.