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No respite for speciality chemical companies amid tariff woes
Mint Mumbai
|September 30, 2025
The speciality chemical sector is headed for a tepid finish to the first half of FY26 (H1FY26), grappling with geopolitical headwinds and the lingering effects of US tariffs.
After a mixed performance in Q1FY26, expectations for Q2FY26 are muted. The second quarter is seasonally weak for most bulk and non-agrochemical firms. For agrochemical companies, meanwhile, excess rainfall across key Indian states likely disrupted crop-protection sprays, hurting demand. That, coupled with weaker exports, following pre-tariff buying in Q1, are also expected to weigh on Q2 earnings. Except some pockets, latest chemical price trends are discouraging as the dynamic tariff scenario has paused investments by end-user industries, hitting speciality chemical firms.
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