India’s semiconductor market is booming. Per Press Information Bureau, India’s semiconductor market size is estimated to reach USD $100-110 billion (₹9-10 lakh crore) by 2030, up from about $38 billion (2023), $45-$50 billion (2025). And this story is no longer confined to fabs and policy incentives.
The more consequential shift is happening deeper in the supply chain, where materials, gases, and process chemicals determine whether manufacturing scale is even possible. These inputs demand extreme purity, long qualification cycles, and technical depth—areas historically dominated by a few global suppliers. As geopolitical risk reshapes sourcing decisions and manufacturers look beyond China, gaps in this ecosystem are becoming opportunities.
Some Indian companies are now establishing themselves in this very space, quietly building capabilities that are fundamental to chip manufacturing and advanced electronics. Similarly, three companies are working on setting up facilities to supply essential chemicals and gases.
#1 Acutaas Chemicals: The only manufacturer of semiconductor grade chemicals
Acutaas Chemicals, formerly known as Ami Organics, is a specialty chemical company. Its business is primarily divided into two core segments and two emerging growth verticals.
Using the core (API and chemicals) to diversify
Advanced Pharmaceutical Intermediaries (API) is the company’s largest segment, contributing 72.9% (₹262.6 crore) of the total revenue (₹306 crore). This segment caters to the growing contract development and manufacturing organization business. Management considers this area to be high-growth, driven by increasing customer inquiries and a robust molecule pipeline.
Next comes specialty chemicals, a segment that witnessed good volume growth and stable pricing. This segment provides a consistent contribution, with revenue reaching ₹43.6 crore in the second quarter. Beyond the core, Acutaas is also venturing into emerging businesses such as battery chemicals and semiconductors.
The electrolyte gambit
Acutaas is expanding into electrolyte additives, mainly Vinylene Carbonate and Fluoroethylene Carbonate. Acutaas is the first company (outside China) to develop electrolyte additives on a global scale. These chemicals are essential materials for green energy, as they improve battery performance, lifespan, and safety.
The company is setting up a capacity of 2,000 metric tons (each) at its Jaghadia site. Commercial operations have already commenced with confirmed orders. However, large-scale production is expected to begin in Q4 FY26 after the completion of the capital expenditure project. It already has orders from export customers, with revenue ramp-up to start from FY27 onwards.
The company anticipates an asset turn of around 2.5x and a payback period of 3 to 3.5 years for this project. As global manufacturers seek to diversify supply chains away from China, Acutaas is well positioned to capture this momentum as the only major Indian developer in this niche.
The only manufacturer of semiconductor grade chemicals
The company is currently the only manufacturer of semiconductor-grade photoresist chemicals in India. These specialized chemicals require ultra-high purity at parts-per-billion (ppb) levels to meet the stringent specifications of modern chip fabrication. It entered the semiconductor industry in FY2023 by acquiring a 55% stake in Baba Fine Chemicals (BFC).
Thereafter, in 2025, the company expanded its global footprint by forming Indichem Inc., a joint venture with J & Materials in South Korea. Acutaas holds a 75% investment stake in the venture and serves as the primary supplier of value-added advanced semiconductor chemicals for the Korean and global markets. This JV is expected to begin contributing to revenue from H2 FY27.
Operating leverage driving financials
Coming to its financials, revenue increased 21% year-on-year to ₹513.4 crore in the first half of FY26 (H1 FY26), driven mainly by the API vertical. EBITDA (Earnings before interest, taxes, depreciation, and amortization) increased by 86% to ₹146.2 crore, while the margin expanded by 900 basis points (bps) to 28%. Profit after tax (PAT) surged by 122% to ₹115.9 crore.
Acutaas Financials
#2 Archean Chemicals industries: Shift towards ₹1.26 lakh crore SiC market
Archean Chemicals is India’s leading manufacturer of specialty marine chemicals, primarily producing Bromine, Industrial Salt, and Sulphate of Potash. The company maintains a leadership position in Indian Bromine merchant sales and stands as the largest exporter of both Bromine and Industrial Salt in India.
The strength: Bromine and industrial salt
It supplies Bromine to various industries, including pharmaceuticals, agrochemicals, and flame retardants. It is India’s largest exporter of Industrial Salt, with a 100% export-focused salt business serving sectors like chloralkali chemicals and textiles. Archean is the only manufacturer in India to produce this high-value, chloride-free fertilizer from natural sea brine.
Beyond bromine: The SiC fabrication gambit
It is diversifying into high-growth sectors. Archean is building India’s first commercial compound semiconductor fabrication facility in Odisha. This facility will manufacture silicon carbide (SiC)-based power devices for use in electric vehicles (EVs), defence, railway, data centers, solar power inverters, consumer appliances, and renewable energy.
Classic-SiC Fab Acquisition
The ground breaking ceremony was conducted on 1 November 2025, with completion expected within 30 months. Archean gains a competitive advantage through a strategic collaboration with UK-based Clas-SiC Wafer Fab. This investment provides Archean with exclusive access to advanced SiC technology, including the development of process modules and design kits.
The facility is designed for both fabrication and packaging. Annual capacity stands at 60,000 wafers and 96 million units of packaging. The first phase of the project involves an estimated investment of ₹2,067 crores. Around 60% to 65% of the total capital is expected to come from fiscal support provided by the Central and State governments.
This shift towards SiC technology aligns with the global SiC market, which is projected to grow at a CAGR of 26% through 2030, potentially reaching over $14 billion. In addition, Archean is entering the zinc-bromide battery technology. This is linked to its bromine business, as bromine is a key component of the electrolyte used in these stationary energy storage solutions.
Prolonged monsoon impacted profitability
On the financial front, total revenue increased by 10% to ₹523 crore in the H1 of FY26. Export accounted for nearly 79% of the total revenue. In the revenue mix, bromine and industrial salt contributed 31% and 68% to the revenue, respectively.
EBITDA was flat at ₹171.8 crore, against 174.7 crore, while margins fell 390 bps to 32.8%. Profit before Tax fell 9.1% to ₹122.6 crore. We haven’t used PAT, as H1 FY25 number was compressed by an exceptional loss of ₹40.2 crore. That said, Archean performance was impacted by erratic and prolonged monsoon patterns.
#3 Stallion India fluorochemicals: The semiconductor gas supplier
Stallion India is a specialised provider of refrigerant and industrial gases. The company focuses on the debulking, blending, and processing of both refrigerant and non-refrigerant gases. It serves a wide range of applications, serving over 15 industries and more than 200 customers.
Refrigerant and Industrial Gases Specialist
Its product portfolio includes more than 40 gases and blends. Stallion holds approximately 10% market share in India and strategically focuses on the aftermarket segment. The aftermarket accounts for 80% of the total market and offers higher profit margins compared to the OEM (Original Equipment Manufacturer) sector.
The Helium hedge: Stallion’s “6N” purity standard
Stallion is strategically entering the semiconductor gas market as a key component of its forward integration roadmap. This initiative is designed to address India’s emerging technology needs in electronics, solar cells, and fiber optics.
To this end, the company is expanding its Khalapur facility to strengthen its position in the field of high-purity semiconductor gases and liquid helium. Similar to this plant, an upcoming fifth operational site at Mamnattu will include a semiconductor and helium-processing facility.
A major part of Stallion’s semiconductor strategy revolves around liquid helium, with a target annual processing capacity of 1,200 metric tons per year. Helium is crucial for semiconductor manufacturing, but it requires specialized technology to handle because it is a liquid at -257 degrees Celsius.
Stallion Growth Drivers
Furthermore, semiconductor manufacturing requires a “6N” purity level (99.9999%). Stallion is investing in specialized testing labs and conditioning processes for its cylinders to meet these purity standards, as even minor impurities can compromise the quality of the gas.
Financials expected to grow faster after the shift
On the financial front, revenue in H1 FY26 increased by 52.8% year-on-year to ₹216.3 crore, driven by higher volumes, an improved product mix, and strong demand across key end-user industries. EBITDA more than doubled to ₹30 crore, while the margin expanded by 326 basis points to 13.9%. Profit after tax (PAT) surged by 135% to ₹21.8 crore.
That said, the shift towards high-value products is expected to drive revenue growth, as the company aims to maintain a 30-35% CAGR over the next three years. The company’s overall operating profit margin are also expected to increase by 3% to 4%.
The bottom line: Growth-at-a-price
Accutas, with its strong financial growth, has a return on capital employed (RoCE) of 25.1% and a return on equity (RoE) of 22.6%. Stallion Financials has also shown strong growth in its relatively short trading history, which is reflected in its robust return ratios. Archean’s volatile financials mean that its return ratios are not as impressive.
Valuation Assessment (X)
| Company | P/E | 3-Year Median P/E | Industry Median P/E | RoCE (%) | RoE (%) |
| Acutaas | 60.6 | 59.9 | 30.9 | 25.1 | 22.6 |
| Archean | 37.2 | 30.6 | 27.9 | 12.8 | 9.8 |
| Stallion | 36.7 | NA | 46.1 | 19.7 | 15.2 |
Source: Screener.in
In terms of valuation, Acutaas trades at a higher price-to-earnings (P/E) multiple, which is in line with its 3-year median but double that of the industry average. Archean is trading at a premium compared to both the median and the industry multiple. Stallion has a shorter trading history, but it trades at a discount compared to industry valuations.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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