SYNOPSIS: India’s chemical majors delivered mixed Q3 FY26 results, with select players reporting strong profit growth and margin expansion, while others saw moderate revenue gains and pressure on bottom-line performance.
India’s chemicals industry operates in a largely de-licensed environment, with restrictions limited mainly to a small set of hazardous substances. This regulatory flexibility has created a favourable ecosystem for expansion and investment. Within the sector, alkali chemicals form the backbone, contributing nearly 73 percent of total output.
India today stands as the sixth-largest chemical producer globally and the third-largest in Asia, with the industry accounting for roughly 7 percent of the nation’s GDP. Valued at around Rs. 21.5 lakh crore (~$250 billion) in 2024, the sector is expected to grow to $300 billion by 2028 and reach approximately Rs. 86 lakh crore ($1 trillion) by 2040, underscoring its long-term growth potential despite periodic global headwinds.
On the global trade front, India ranks 14th in chemical exports and 8th in imports (excluding pharma). The specialty chemicals segment, valued at $64.5 billion in 2024, is projected to expand to $92.6 billion by 2033, growing at a CAGR of 3.8 percent. This growth is being fuelled by rising demand from agriculture, construction, automotive, and other industrial sectors, along with rapid urbanisation and continuous product innovation.
Within this space, agrochemicals remain a key growth driver. The segment, estimated at $15.5 billion in 2024, is expected to reach $23.3 billion by 2033, supported by advancements in technology and the development of next-generation formulations. Listed below are some notable chemical stocks that have reported their financial results for the third quarter of FY26:
SRF Limited
With a market cap of Rs. 76,783 crores, the stock opened in the red at Rs. 2,606.7 on BSE, down by around 0.4 percent on Friday. For Q3 FY26, SRF reported a consolidated revenue from operations of Rs. 3,713 crores, reflecting a marginal growth of around 2 percent QoQ compared to Rs. 3,640 crores in Q2 FY26, as well as a year-on-year increase of over 6 percent from Rs. 3,491 crores recorded in Q3 FY25.
Net profit stood at Rs. 433 crore, indicating an increase of about 12 percent QoQ from Rs. 388 crores in Q2 FY26, while on a year-on-year basis, the profit jumped by nearly 60 percent from Rs. 271 crores reported in Q3 FY25.
SRF Limited is primarily engaged in the business of manufacturing, purchasing, and selling technical textiles, chemicals, packaging films and other polymers. Its chemicals segment comprises Specialty Chemicals and Fluorochemicals. Under Specialty Chemicals, SRF manufactures intermediates for agrochemicals, pharmaceuticals, and specialty applications, along with offering contract development and manufacturing services. The Fluorochemicals portfolio includes refrigerants, industrial chemicals, pharmaceutical inputs, propellants, and fluoropolymers.
Deepak Nitrite Limited
With a market cap of Rs. 21,497 crores, the stock opened in the red at Rs. 1,589 on BSE, down by around 0.2 percent on Friday. For the quarter, the company posted a revenue from operations of Rs. 1,975 crores, reflecting a sequential growth of around 4 percent QoQ compared to Rs. 1,902 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue grew nearly 4 percent from Rs. 1,903 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 100 crore, indicating a decrease of around 16 percent QoQ from Rs. 119 crores in Q2 FY26, but a rise on a year-on-year basis by about 2 percent from Rs. 98 crores reported in Q3 FY25.
Deepak Nitrite Limited, one of India’s leading manufacturers of advanced intermediates and phenolic chemicals, is engaged in the business of producing a wide range of products, including Sodium Nitrite, Phenol, Acetone, IPA, Xylidines, Oximes, Toluidines, Cumedines, and more. Its product offerings find applications in pharmaceuticals, agrochemicals, dyes and pigments, paints, laminates, plywood, and other critical sectors.
Navin Fluorine Limited
With a market cap of Rs. 32,444 crores, the stock opened in the red at Rs. 6,473.5 on BSE, down by around 0.2 percent on Friday. Navin Fluorine posted a consolidated revenue from operations of Rs. 892 crores in Q3 FY26, reflecting about 18 percent QoQ growth compared to Rs. 758 crores in Q2 FY26, and a year-on-year increase of over 47 percent from Rs. 606 crores recorded in Q3 FY25.
Net profit stood at Rs. 185 crore, indicating an increase of about 25 percent QoQ from Rs. 148 crores in Q2 FY26, while on a year-on-year basis, the profit jumped sharply by nearly 120 percent from Rs. 84 crores reported in Q3 FY25.
Navin Fluorine International Limited has one of the largest integrated fluorochemicals complexes in India. It primarily focuses on fluorine chemistry – producing refrigeration gases, inorganic fluorides, specialty organofluorines and offers contract research and manufacturing services.
Aarti Industries Limited
With a market cap of Rs. 16,447 crores, the stock opened in the red at Rs. 455.50 on BSE. For the quarter, the company posted a revenue from operations of Rs. 2,318 crores, reflecting a sequential growth of around 10 percent QoQ compared to Rs. 2,100 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue grew nearly 26 percent from Rs. 1,843 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 133 crore, indicating an increase of around 25 percent QoQ from Rs. 106 crores in Q2 FY26, as well as an impressive rise on a year-on-year basis by over 189 percent from Rs. 46 crores reported in Q3 FY25.
Aarti Industries Limited is engaged in the business of manufacturing and dealing in speciality chemicals and intermediates. It has a strong market position in the NCB-based specialty chemicals segment.
Himadri Speciality Chemical Limited
With a market cap of Rs. 24,260 crores, the stock opened in the green at Rs. 483.10 on BSE, as against its previous closing price of Rs. 483.05. For the quarter, the company posted a consolidated revenue from operations of Rs. 1,184 crores, reflecting a sequential growth of around 11 percent QoQ compared to Rs. 1,071 crores in Q2 FY26. On a year-on-year basis, revenue grew nearly 4 percent from Rs. 1,141 crores recorded in Q3 FY25.
Profitability improved meaningfully during the quarter. Net profit for Q3 FY26 stood at Rs. 192 crore, indicating a significant increase of around 9 percent QoQ from Rs. 176 crores in Q2 FY26, and on a year-on-year basis by over 36 percent from Rs. 141 crores reported in Q3 FY25.
Himadri Speciality Chemical Limited is one of the leading players in speciality carbon blacks, speciality oils, naphthalene and sulphonated naphthalene formaldehyde (SNF). It is primarily engaged in the business of manufacturing carbon materials and chemicals.
The company’s diverse portfolio includes critical materials such as anode and cathode components for lithium-ion batteries, speciality carbon black used in tyres, coatings, fibres, wires, cables, hoses, etc. and refined naphthalene. We also provide speciality materials such as coal tar pitch, speciality oils and clean power solutions, all designed to meet the diverse needs of modern industries.
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