SPECIALITY CHEMICAL STOCKS SHOWING STRONG GROWTH MOMENTUM

After a choppy FY24, India's speciality chemicals sector is finally showing signs of growth. Most companies are expected to show good growth in this results season, primarily due to better sales volumes, stable raw material costs, and a shift toward higher-value products. Below are some such companies that have weathered the downcycle but are now well-positioned for future growth:

- a leading player in the agrochemical space, offering a diverse portfolio that includes crop protection products, household insecticides, and feed additives. In FY25, the company's revenue rose 11%, despite a 10% hit from pricing in both domestic and export markets. This growth was led by strong volumes and driven by better asset utilisation, as well as campaign-led farmer engagement. - the company is a top manufacturers of aliphatic amines and their derivatives in India, serving diverse sectors like pharma, agrochemicals, and petrochemicals. FY25 was a mixed year wherein it's standalone revenue declined 5% while EBITDA fell 7%. Although demand from pharma was stable, the agrochemical segment remained volatile. However, the company has seen a steady recovery by the end of FY25 with improved volumes and better utilisation. - the company has steadily evolved from an agrochemical company into a diversified life sciences company. It's strength lies in complex chemistry, deep customer relationships, and a growing focus on research-led innovation. FY25 revenue grew 4%, EBITDA rose 8%, and net profit was flat. - a key player in India's aliphatic amines space, this company serves the pharma, agrochemicals, rubber chemicals, and water treatment sectors. After a difficult FY24, the company's revenue grew 9% in FY25, EBITDA rose 21% and margins improved to 18%, supported by strong volume gains and softer raw material prices.