From PI Industries to Navin Fluorine: Why are specialty chemical stocks rising today? Explained

Shares of speciality chemical makers, which had been under significant selling pressure in recent sessions, regained momentum in Friday's trade, April 11, in line with the broader market, with some stocks, soaring up to 7.5% after US President Donald Trump gave short-term relief to India by pausing reciprocal tariffs for 90 days.

Investors cheered Trump’s decision, leading to a sharp rise in demand for PI Industries, whose share price surged over 7.4% to ₹3,538 apiece. Other stocks, including Vinati Organics, Clean Science & Technology, Navin Fluorine International, Gujarat Fluorochemicals (GFL), Galaxy Surfactants, Sudarshan Chemical Industries, and PCBL Chemical, also jumped up to 6% in intraday trade today.

The Indian chemical sector has significant exposure to the US market, with companies such as PI Industries (43% of revenues), Vinati Organics (20%), Clean Science (17%), and Navin Fluorine (14%), according to analysts.

In addition to the pause in duties on India, the rally in chemical stocks is also supported by Trump’s decision to raise tariffs on China following countermeasures by Beijing. The effective tariff rate on Chinese imports now stands at 145%, CNBC reported Thursday, citing a White House official.

Dumping fears loom despite China tariff gains

Although the higher tariffs on China are expected to drive volumes for Indian specialty chemical makers, there are growing fears that these steep duties may lead to aggressive dumping by Chinese manufacturers, which could erode the pricing power of domestic players and weigh heavily on profitability.

Chinese imports into India and global markets have already surged over the past two fiscals, driven by China’s economic slowdown and excess capacity. This has triggered sharp price corrections, with domestic and export realisations for Indian specialty chemical makers plunging 15–20% between fiscals 2024 and 2025, according to analysts.

In late March, credit rating agency Crisil stated that trade-related uncertainties stemming from US tariff actions could disrupt the fragile recovery in profitability across India’s specialty chemicals sector.

Operating margins, earlier estimated to improve to 15.5–16% in fiscal 2026, could decline by 150 basis points to 14–15%—similar to levels seen in the past two fiscals, said the rating agency.

Domestic brokerage firm Kotak Institutional Equities earlier said that in the refrigerant market, China is already subject to very high anti-dumping duties in the US. Therefore, the newly imposed reciprocal tariffs between China and India (pause for 90 days) are unlikely to move the needle for Indian companies in terms of market share in the US.

In recent years, Indian chemical firms have increasingly focused on high-value specialty chemicals to cater to growing demand in areas such as pharmaceuticals, agrochemicals, and advanced materials.

March quarter earnings preview

ICICI Securities expect specialty chemical firms’ Q4FY25 revenue to rise 14% YoY on a low base and demand recovery, with EBITDA up 33% YoY. SRF, Navin Fluorine, Gujarat Fluorochemicals, Archean Chemical, and BlueJet are likely to outperform. Strong EBITDA growth is seen in SRF, Navin Fluorine, GFL, Atul, BlueJet, Himadri Speciality, and Archean.

Clean Science, EPL, PCBL, and Sudarshan Chemical show moderate gains. The brokerage expects Rossari to remain flat, while Tatva Chintan and Chemplast Sanmar may decline due to pricing and spread pressures. Galaxy’s growth may miss guidance, as per the brokerage.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.