The Indian specialty chemicals sector’s 7-8 per cent revenue growth next fiscal (FY26) will be largely volume-driven with realisations under pressure, according to a Crisil report.
Trade-related uncertainties stemming from US tariff actions could upend the recovery in profitability of India's specialty chemicals sector.
Companies with balanced portfolios or catering to resilient end-user sectors are likely to better absorb shocks, while those reliant on exports or commoditised segments may face increased margin risk due to price volatility, said the report.
According to Anuj Sethi, Senior Director, Crisil Ratings, domestic revenues, forming 63 per cent of the pie, are expected to grow 8–9 per cent, while exports, may see 4–5 per cent growth.