20% Upper Circuit: Chemical Stock Soars After Its Net Profit Grows by 110% in Q4

Synopsis: Small-Cap Chemical stocks hit the 20% upper circuit after strong Q4 results. Revenue increased 19.3% QoQ to ₹395 Crores, while net profit surged 110.4% QoQ to ₹64.8 Crores. Its earnings per share (EPS) for the quarterly period stood at ₹19.99.

The company is one of India’s leading manufacturers of Aliphatic Amines and their derivatives, specialising in the production of speciality chemicals, and is in focus in the day’s trade as they have rallied 20 percent following their Q4 results

With a market capitalization of Rs. 5,257.22 crores in the day’s trade, the shares of Balaji Amines Ltd hit a 20 percent upper circuit, making a high of Rs. 1,622.55 per share compared to its previous closing price of Rs. 1,352.15 per share.

What happened

Balaji Amines Ltd, one of India’s leading manufacturers of Aliphatic Amines and their derivatives, specialising in the production of speciality chemicals, is in the spotlight following its Q4 results  as follows:

Its revenue from operations rose by 11.9 percent YoY from Rs. 353 Crores in Q4FY25 to Rs. 395 Crores in Q4FY26, and it also increased by 19.3 percent QoQ from Rs. 331 Crores in Q3FY26 to Rs. 395 Crores in Q4FY26.

Its net profit rose by 60.4 percent YoY from Rs. 40.4 Crores in Q4FY25 to Rs. 64.8 Crores in Q4FY26, and it also increased by 110.4 percent QoQ from Rs. 30.8 Crores in Q3FY26 to Rs. 64.8 Crores in Q4FY26.

The earnings per share (EPS) for the quarterly period stood at Rs. 19.99, compared to Rs. 12.36 in the previous year’s quarter. The company has also recommended a final dividend of Rs. 11/- per equity share, i.e., 550% on the face value of Rs. 2/- per share, and the same will be payable after it is approved by the shareholders at the 3rd Annual General Meeting of the Company.

Company Overview & Others

Balaji Amines Limited is one of India’s leading manufacturers of Aliphatic Amines, specialising in Methylamines, Ethylamines, specialty chemical derivatives, and pharma excipients. Established in 1988, the company began commercial production of Methyl Amines in 1989 and later expanded into Ethyl Amines and downstream derivative products, catering to the pharmaceutical, pesticide, and specialty chemical industries.

The company has consistently expanded its manufacturing capacities and improved its processes to deliver high-quality products at competitive costs. Balaji Amines also developed indigenous amine manufacturing technology in India, strengthening its position in a sector where technology is closely guarded globally.

With certifications including ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018, the company has built a strong presence in international markets. Its products meet stringent global quality standards, helping it secure continuous orders from leading global customers.

The company has reported decent profitability metrics, with a Return on Capital Employed (ROCE) of 11.0 percent and a Return on Equity (ROE) of 8.75 percent. It also maintains a healthy balance sheet with a low debt-to-equity ratio of 0.07, reflecting strong financial stability.

Additionally, the company has maintained a healthy dividend payout of 20.4 percent, highlighting its shareholder-friendly approach. Its working capital requirements have also improved significantly, reducing from 101 days to 68.5 days, indicating better operational efficiency and cash flow management.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 20% Upper Circuit: Chemical Stock Soars After Its Net Profit Grows by 110% in Q4 appeared first on Trade Brains.