Balaji Amines shares rallied 13.2% to touch an intraday high of ₹1,212.5 on Thursday, January 8, bucking the broader midcap sell-off trend following the announcement of a substantial government incentive package. The specialty chemicals maker received an eligibility certificate from the Directorate of Industries, Government of Maharashtra, for its unit-4 expansion at Chincholi MIDC, Solapur. At 10:35 AM, shares were trading at ₹1,206 apiece on the National Stock Exchange, soaring 12.66%. According to NSE data, the company has a market capitalisation of ₹3,901.73 crore. The stock had touched its 52-week high of ₹1,980 on January 9, 2025, while the 52-week low of ₹1,065.6 was hit on January 6, 2026.
Specialty chemicals maker Balaji Amines Ltd has secured an eligibility certificate from the Directorate of Industries, Government of Maharashtra, for its unit-4 expansion at Chincholi MIDC, Solapur. The certificate, dated January 2, 2026, and received on January 7, 2026, recognises the company under the Mega Projects Investment Based 100% Gross Basis category of the Package Scheme of Incentives (PSI)-2013. Under this scheme, the company is entitled to an industrial promotion subsidy (IPS) of ₹258 crore, covering 50% of SGST payable on eligible finished products sold in Maharashtra. According to the regulatory filing, the substantial incentive package is designed to bolster the company's manufacturing capabilities at its Solapur facility.
The incentive package extends beyond the monetary subsidy to include comprehensive tax benefits. The company will receive exemption from electricity duty and 100% exemption from stamp duty for a period of seven years, effective from January 1, 2024, to December 31, 2030. These benefits are in line with government notifications from the Revenue and Forest Department, providing substantial cost savings for the company's expansion project. The comprehensive nature of these incentives reflects the state government's commitment to supporting industrial growth in the chemicals sector.
Balaji Amines' second quarter results showed mixed performance indicators amid challenging market conditions. The company's net profit fell 15.6% year-on-year to ₹34.5 crore from ₹41 crore in the same period last year. Revenue from operations stood at ₹340.5 crore, down 1.8% from ₹346.8 crore a year earlier. However, earnings before interest, tax, depreciation, and amortisation (EBITDA) remained nearly flat at ₹59.8 crore compared to ₹60.6 crore last year, with operating margins stable at 17.5% versus 17.4% a year ago. Despite the operational challenges, investors continue to monitor the company's ability to translate the new government incentives into stronger profitability.
In a month, shares of the firm have gained nearly 10%, while for six months' time, they have tumbled nearly 37%. On a year-on-year basis, Balaji Amines shares have slumped almost 31%, reflecting the challenging market conditions in the specialty chemicals sector. Set up in 1988, Balaji Amines Limited (BAL) is one of the leading manufacturers of aliphatic amines in India, catering to the growing requirements of value-based speciality chemicals. BAL commenced manufacture of methylamines in 1989 and subsequently added facilities for the manufacture of ethylamines and other derivatives of methylamines and ethylamines. The company's diversified product portfolio positions it well to leverage the new government incentives for future growth.
