SYNOPSIS:
The Boards of Starbigbloc and Bigbloc Building Elements have granted merger approval to consolidate operations, reduce costs, enhance synergies, and strengthen financial capacity.
During Wednesday’s trading session, shares of one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) blocks and panels in India hit a 20 percent upper circuit on BSE, after the Board of the company approved the proposal of a merger of its subsidiaries.
At 03:26 p.m., the shares of BIGBLOC Construction Limited were trading in the green at Rs. 65.35 on BSE, up by around 14 percent, as against its previous closing price of Rs. 57.2, with a market cap of Rs. 925 crores. The stock has delivered negative returns of around 38 percent in the last one year, but has gained by more than 27 percent in a month.
What’s the News
According to the latest filings with the stock exchanges, the Boards of Starbigbloc Building Material Limited (transferor) and Bigbloc Building Elements Private Limited (transferee) have granted approval for the initiation of their merger at meetings held on 26th November 2025, subject to requisite regulatory clearances. The proposed share-exchange ratio for the amalgamation has been set at 1:1.
Starbigbloc has a paid-up share capital of Rs. 18.17 crores and reported a standalone turnover of Rs. 71.3 crores in 2024-25, while Bigbloc Building Elements has a paid-up share capital of Rs. 18.4 crores and a standalone turnover of Rs. 113.6 crores for the same period.
The transaction qualifies as a related-party transaction, as the transferor company is a subsidiary of the parent company and the transferee company is its wholly owned subsidiary. Both entities operate in the same line of business, engaged in the manufacturing of AAC blocks.
The amalgamation aims to rationalise and consolidate the group structure, simplify operations and generate stronger synergies. The merger is expected to reduce operational costs due to combined efforts, eliminating duplications of administrative work, communications/coordination efforts across the group entities, multiplicity of legal and regulatory compliances, thereby ensuring optimum utilisation of available resources and integrated management focus, which will enable structured, sharper and better management focusing on business growth.
Post-merger, the combined entity is anticipated to benefit from enhanced financial strength, an expanded asset base, and a wider customer network – factors that are likely to improve its fund-raising ability and support future expansion.
Financials & More
BIGBLOC reported a marginal growth in its revenue from operations, showing a year-on-year increase of more than 30 percent from Rs. 51.6 crores in Q2 FY25 to Rs. 67.3 crores in Q2 FY26. In contrast, the company posted a net loss of Rs. 3.15 crores for the quarter, compared with a net profit of Rs. 0.2 crores over the same period.
Bigbloc Construction Limited is primarily engaged in the business of manufacturing, selling and marketing of Aerated Autoclaved Concrete (AAC) Blocks. Its diverse portfolio includes AAC fly ash & sand-based blocks, AAC wall panels, and a range of construction chemicals such as NXTFIX jointing mortar and NXTPLAST ready-mix plaster, with upcoming additions like NXTGRIP tile adhesive.
As of Q2 FY26, the company recorded a strong pickup in AAC block sales volumes, rising to 1,98,555 CBM in Q2 FY26 compared to 1,38,126 CBM in Q2 FY25. Capacity utilisation also reflected improved operational performance, increasing from 61 percent in Q2 FY25 to 62 percent in Q2 FY26.
In terms of customer mix for H1 FY26, dealers contributed the largest share at 60 percent, followed by builders, contractors, individual buyers, and industrial customers at 28 percent, while corporate clients accounted for the remaining 12 percent.
Written by Shivani Singh
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