Balaji Amines Ltd

Dear shareholders,

For Balaji Amines, FY25 was defined by our ability to navigate significant global headwinds with determination and agility. In the face of economic volatility and shifting market dynamics, we have not only maintained momentum but also emerged stronger and more focused.

Your steadfast support and belief in Balaji Amines have been instrumental in this journey, serving as a source of strength as we met each challenge with resolve.

As we look back on the past financial year, Balaji Amines exhibited resilience and strategic discipline amid a complex and rapidly evolving global environment. The year was marked by mixed demand dynamics, persistent pricing pressure across key product lines, and significant macroeconomic volatility. Within this backdrop, stable demand in the pharmaceutical segment provided a reliable foundation for our base volumes, offering consistency in an otherwise fluctuating marketplace. The agrochemical segment, in contrast, remained volatile, with demand showing only marginal improvement toward the close of the year. In addition, China's aggressive dumping practices presented considerable challenges, particularly impacting standalone products such as DMF and NMP, as well as operations within our subsidiary, Balaji Speciality Chemicals Limited.

Despite these headwinds and a year-on-year dip in overall performance, our financial results for the last quarter of FY25 revealed broad-based growth, supported by more favourable global economic indicators. These green shoots suggest a potential reversal in sectoral trends and afirm our readiness to capitalise on improving market conditions with agility and foresight.

I am pleased to mention that the prevailing volatilities did not deter our conviction to better our prospects.

In November 2024, we successfully expanded Methylamines production capacity to 88,000 MT at Unit IV, enabling cost-e_cient synthesis of Dimethylamine (DMA) and reinforcing operational scalability. Further advancing our sustainability agenda, we commissioned the first phase of our 8 MW DC solar power plant in April 2025. This initiative has already contributed to a substantial reduction in power costs across all facilities, marking a decisive step toward lowering our carbon footprint and enhancing energy resilience as a part of ESG compliances.

We have integrated advanced equipment into our existing DMC plant for producing Electronic Grade DMC. Commissioned in May 2025, this new line addresses rising demand from the EV battery segment. Furthermore, as India's sole manufacturer of Electronic Grade DMC, we are well-positioned to unlock compelling growth opportunities in the evolving clean mobility ecosystem.

Moreover, we modified our existing Ethyl Amines plant at Unit I to manufacture Isopropyl Amines (MIPA/DIPA). This value-added product is a crucial input for the production of various pharmaceutical products. The plant's capacity will be approximately 20-21 Tons per day. The plant is ready and will be commissioned upon receipt of Consent for Operations from MPCB.

Our newly commissioned facilities are poised to accelerate growth in the current fiscal year and beyond. Complementing this momentum, we are advancing multiple capital projects, with most facilities scheduled to commence operations over the next few quarters. Notably, each plant will introduce high-value, differentiated products—where Balaji stands as either the sole domestic producer or among a select few—expanding our opportunity matrix and reinforcing our leadership in specialised chemistry.

Our subsidiary, Balaji Speciality Chemicals, is also developing a large-scale greenfield facility designed to produce import-substitute cyanide-based chemicals. This strategic move supports national self-reliance while unlocking new growth avenues. Phase 1 of the project is expected to be commissioned in FY26.

These are exciting times for Balaji Amines as every project, upon stabilisation, will make a decisive contribution to business growth and profitability.

India stands as the sixth-largest producer of chemicals globally and the third-largest in Asia, yet per capita chemical consumption remains strikingly low at US$91, significantly below mature markets like the US and China, where consumption exceeds US$1,200. This gap underscores the vast untapped potential within the Indian chemical industry. The sector plays a pivotal role in India's economic framework, contributing approximately 7% to the national GDP and accounting for nearly 14% of the Industrial Production Index (IIP). Beyond its economic significance, chemicals serve as foundational inputs across critical user industries, including pharmaceuticals, agrochemicals, and the automotive sector, thereby reinforcing their strategic relevance.

India is currently at an inflection point, poised to correct decades of structural under-consumption and recalibrate its industrial trajectory. This shift will be instrumental in sustaining the nation's standing among the world's fastest-growing major economies. As the country intensi_es efforts to cement its position among the top three global economies, the chemicals sector is expected to witness robust and accelerating demand, driven by rising consumption, capacity augmentation and strategic import substitution.

At Balaji Amines, purpose is not just a guiding principle—it is the engine that drives every strategic initiative and investment. Through sustained focus on import substitution and niche products with limited domestic competition, we actively contribute to strengthening India's self-reliance and industrial capability.

With a future-oriented lens, we continuously recalibrate our portfolio to align with evolving market dynamics, crafting a solution-driven offering that advances our long-term aspirations. Our commitment to innovation, coupled with robust research and development, enables us to deliver differentiated value while enhancing cost efficiencies and resource optimisation. This purposeful approach underpins our foundation and propels us toward a future defined by impact, agility, and sustained value creation.

Building on this momentum, we aim to achieve an annual turnover of H3,000 crore within the next two years, subject to a return to realistic product pricing levels. To support this growth trajectory, we remain anchored in operational excellence and portfolio diversification, both critical pillars of strategic resilience and market leadership.

As we close this chapter, I extend my heartfelt gratitude to our valued shareholders for your unwavering trust in Balaji Amines Limited. Your continued confidence fuels our pursuit of ambitious growth and long-term value creation. I also wish to acknowledge the relentless dedication of our employees—their resilience, commitment, and hard work remain the backbone of our success.

To our esteemed customers, suppliers, partners, and regulatory bodies, we are deeply thankful for your enduring collaboration and support. As we move forward, we remain steadfast in our commitment to delivering sustained value to all our stakeholders and to navigating evolving market complexities with clarity, agility, and conviction.

Warm regards,

Executive Chairman