Balaji Amines Secures ₹258 Cr Subsidy for Maharashtra Expansion

CHEMICALS
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AuthorRiya Kapoor|Published at:
Balaji Amines Secures ₹258 Cr Subsidy for Maharashtra Expansion
Overview

Specialty chemical maker Balaji Amines Ltd. received an eligibility certificate from the Maharashtra government for its unit-4 expansion. The company is set to benefit from a ₹258 crore industrial promotion subsidy and significant stamp duty and electricity duty exemptions over seven years, aiming to bolster its Solapur facility. This comes despite recent second-quarter results showing a dip in net profit and revenue.

Subsidy Approval Bolsters Expansion Plans

Specialty chemicals producer Balaji Amines Ltd. has secured a significant boost for its manufacturing capabilities in Maharashtra. The company announced on Wednesday that it received an eligibility certificate from the Directorate of Industries, Government of Maharashtra. This certificate greenlights substantial incentives for its unit-4 expansion project located at Chincholi MIDC in Solapur.

Key Incentives Detailed

The eligibility certificate, dated January 2, 2026, recognizes the project under the state's mega project scheme. Balaji Amines is now entitled to an Industrial Promotion Subsidy (IPS) totaling ₹258 crore. This subsidy covers 50% of the State Goods and Services Tax (SGST) payable on eligible finished products sold within Maharashtra. Furthermore, the company will enjoy exemptions from electricity duty and a complete 100% waiver on stamp duty for a seven-year period, effective from January 1, 2024, through December 31, 2030.

Financial Performance Under Scrutiny

The positive news on expansion incentives arrives as Balaji Amines navigates a challenging financial period. In its second quarter, the company reported a 15.6% year-on-year decline in net profit, falling to ₹34.5 crore from ₹41 crore in the same period last year. Revenue from operations also saw a slight decrease, dropping 1.8% to ₹340.5 crore from ₹346.8 crore.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) remained largely flat, at ₹59.8 crore compared to ₹60.6 crore a year prior. Operating margins held steady at 17.5%, marginally up from 17.4% in the corresponding quarter last year. Despite the operational incentives, investors continue to monitor the company's ability to translate revenue into stronger profits.

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