Driven by Demand and Policy Support, Indian Chemical Sector Poised for Strong Growth in FY26: Report
India's speciality chemicals sector is poised for robust growth in the fiscal year 2026, largely driven by improving demand trends, strategic capital expenditures, and potentially better pricing, according to a recent report by Nuvama.
ANI
Jun 27, 2025 15:19 IST
New Delhi [India], June 27 (ANI): India's speciality chemicals sector is poised for robust growth in the fiscal year 2026, largely driven by improving demand trends, strategic capital expenditures, and potentially better pricing, according to a recent report by Nuvama.
This report also highlights that this optimistic outlook is further bolstered by strong government support in the form of safeguard duties and initiatives such as the Production Linked Incentive (PLI) scheme and 'Make in India' campaign, all of which are actively seeding growth in the sector.
The companies in this field are focusing on digitalisation, raw material savings and new product development to drive growth and profitability.
Additionally, companies have forged joint ventures and partnerships, which are expected to contribute significantly to their top lines. Growth in top-line is expected to be in healthy double-digit, and margin expansion will be driven by innovative launches, capacity utilisation and production ramp-up.
For instance, Neogen Chemicals is forging a key joint venture with Japan's Morita Chemical Industries to advance its lithium salt technology, aiming to establish itself as a credible non-Chinese supplier in the global market.
The agrochemical market, in particular, continues to offer opportunities for double-digit growth, propelled by improving trends in horticulture, a strategic shift from insecticides to herbicides and fungicides, and the introduction of innovative products through partnerships.
The domestic environment for technical and intermediate manufacturers remains robust, supported by low channel inventory and a favourable monsoon forecast.
Overall, the sector remains positive and the companies are well-positioned to capitalise on these opportunities and drive growth and profitability over the coming years. With a positive outlook and strategic initiatives in place, the chemicals sector is poised for a strong performance in FY26E. (ANI)
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