Archive · 29 Sep 2025
Specialty Chemical Firms Face Tariff Woes, Slow Growth
Imagine companies that make special chemicals, like those used in your phone or your house.
They're having a tough time.
The first half of the year isn't looking good, and the next quarter will be slow.
One reason is that it's expensive to send these chemicals to the US, which is hurting business.
Also, people aren't buying as much stuff made with these chemicals.
The chemicals that make things are sitting around.
Companies are cautious to build new factories.
Prices for these chemicals aren't going up, and some companies are selling less.
Though the situation is bad now, things might get a little better later as the companies adjust.
Specialty chemical sector is expected to have a tepid first half of FY26.
Q2FY26 performance is expected to be muted due to seasonal weakness and weather.
US tariffs are impacting exports and earnings for key companies.
Slowdown in demand is seen in consumer durables and construction.
H2FY26 may be better than the first half, but a rapid rebound is unlikely.
- Who
- Specialty chemical companies
- What
- Are facing headwinds, including tariffs and weak demand.
- When
- H1FY26 and Q2FY26
- Where
- US markets and key Indian states
- Why
- Geopolitical issues and weak demand.
- Sector Performance
- Tepid finish expected for H1FY26
- Q2FY26 Outlook
- Muted, due to seasonal weakness and weather impacts
- Key Impact
- US tariffs and weak exports affecting earnings
- Companies Affected
- SRF, NFIL, GFL, Aarti Industries, Atul (Ltd)
- Industry Trends
- Slowdown in demand from consumer durables and construction sectors