Specialty chemicals have emerged as one of the strongest industrial segments in India. These products are customized and deployed in pharma, electronics, coatings, and advanced materials. They offer better margins and deeper client relationships than bulk chemicals. The sector has matured a lot in recent years with Indian companies making significant investments in R&D, process innovation, and cleaner technologies.
A recent article by Finnovate underlines a clear shift in global sourcing. Many companies abroad want to reduce dependence on one country, essentially China. As they diversify, they seek new partners for specialty chemicals. Finnovate says India is viewed as a practical and reliable alternative now because it offers scale, cost advantages, and strong process chemistry. This shift has pushed global buyers to explore long-term contracts with Indian suppliers.
This emerging trend creates a real opening for Indian firms that focus on export-oriented, high-value specialty molecules. These firms are also better placed because they already work with global customers and meet strict quality norms. With this change, not every chemical player gains to an equal extent.
Companies dependent on domestic volumes or basic chemicals don’t gain that much. The biggest advantage now shifts to those players with niche products, consistent quality and strong relationships with multinationals.
The supply-chain reset is also encouraging global companies to add a second source for critical intermediates. This offers Indian firms visibility on demand and better pricing power. The five stocks selected here meet these conditions: they have meaningful exports; they operate in narrow specialty segments and supply essential inputs to global value chains.
As sourcing moves away from China, these companies are better placed than many peers to ride India’s growing specialty-chemicals export story.
#1 Anupam Rasayan: The long-contract king
Anupam Rasayan India is engaged in manufacturing of specialty chemicals, which are sold domestically as well as exported to other countries.
Anupam Rasayan India has reported a strong quarter in its specialty-chemicals business in Q2 FY26. Demand improved across key markets and global supply chains were more stable. At the end of Q2 FY26, the company had an order book of about Rs 14,646 crore, spread over five to seven years. Many of the linked products have already been commercialized. Around Rs 450 crore from these contracts is expected to be booked in FY26.
Growth was driven by the pharma and polymer businesses. This was on account of new molecule launches. Exports also held up well. The company said that most of its products remain exempt from recent US changes in tariffs.
New plants from recent capex are set to contribute more as they ramp up. Margins may also improve as older inventory is cleared and revised pricing takes effect. The company is focused on reducing working capital and improving cash flows in the coming quarters.
In the past one year, Anupam Rasayan India share price rallied 63.8%.
Anupam Rasayan India 1 Year Share Price Chart
#2 Tatva Chintan: Betting on the battery boom
Tatva Chintan Pharma Chem was incorporated in 1996 and it is a manufacturer of a diverse portfolio of structure directing agents, phase transfer catalysts, electrolyte salts for batteries, and pharmaceutical and agrochemical intermediates and other speciality chemicals.
In Q2 FY26, Tatva Chintan Pharma Chem has seen a steady pick-up across its portfolio. SDA volumes improved while the electrolyte salts business was strong, aided by regular dispatches to energy storage customers.
Management believes commercial volumes for hybrid-battery applications will be reached in 2026. There is one electrolyte product that may be delayed since it comes under recent U.S. tariff actions; however, validation work continues with the customer.
Pilot work in semiconductor chemicals was in good progress and plant-scale batches are planned for the fourth quarter. Two more products are at the pilot stages; interest from global semiconductor clients has been received. The new plant block, scheduled to start in January 2026, is on schedule and will reduce bottlenecks in agro and pharma intermediates.
The company also emphasized its Jolva greenfield project, where the design phase has started. Management expects to break ground by early 2026 and use the site to house new high-potential agro intermediates and future specialty-chemical pipelines.
In the past one year, Tatva Chintan Pharma Chem share price surged 90.6%.
Tatva Chintan Pharma Chem 1 Year Share Price Chart
#3 Clean Science: The green chemistry leader
Incorporated in 2003, Clean Science and Technology is one of the leading chemical manufacturers globally. It manufactures functionally critical specialty chemicals.
Clean Science and Technology posted a softer quarter in its specialty-chemicals business. Revenue was hurt due to weaker demand for and pricing pressure on some established products. Management said customers reduced stocking as end-product prices continued to fall.
HALS, a key chemical in the company’s portfolio, remained the principal driver. Volume in the segment was up around 25 percent, while the mix also improved as higher-grade products like HALS 2020 became more important. Material margins reached almost 35 percent due to easier raw-material costs.
New product work continued. Performance Chemical-1 has entered chemical trials and commercial production is expected shortly. Customer sampling should take place in December. The company also commercialised barbituric acid from a refurbished unit and expanded food-grade antioxidant capacity.
Management expects demand to stay soft in Q3 but sees a clearer pickup in Q4 with new lines coming online and an improvement in customer offtake.
In the past one year, Clean Science and Technology share price tumbled 27.3%.
Clean Science and Technology 1 Year Share Price Chart
#4 Navin Fluorine: The high-value CRAMS play
Navin Fluorine International is primary engaged in producing refrigeration gases, inorganic fluorides, specialty organofluorines and offers contract research and manufacturing services. Its portfolio includes 50+ fluorinated compounds developed over the years.
Navin Fluorine International has announced robust growth across all business segments in Q2 FY26, driven by higher volumes and firm pricing. The performance of the specialty-chemicals segment was once again improving with the help of a new fluoro-specialty plant commissioned in December 2024. The plant operated at optimum capacity and contributed meaningfully to revenue.
Management added that the specialty molecules order book remains secured through 2026, with demand improving across agro, advanced materials and global innovator programs. The Opteon immersion-cooling fluid project, developed for Chemours, is on schedule and expected to be completed by Q1 FY27.
The company also approved Rs 75 crore towards debottlenecking its multipurpose plant at Dahej to support a key intermediate for a global innovator. Commissioning is targeted for Q3 FY27. Management maintained a positive outlook based on strong visibility in Specialty and CDMO, continued traction in global partnerships.
In the past one year, Navin Fluorine International share price rallied 83.5%.
Navin Fluorine International 1 Year Share Price Chart
#5 SRF: Diversified strength in fluoropolymers
Incorporated in 1970, SRF manufactures and sells technical textiles, chemicals, packaging films, aluminum foils, and other polymers.
SRF reported a strong performance in Q2 FY26, led by the Chemicals segment. Specialty chemicals delivered higher volumes and a better product mix, supported by new agro, pharma, and AI launches in the first half of the year.
The company added that collaboration with global innovators continues unabated, with a number of complex molecules currently under development. It also mentioned how raw-material sourcing has fared better, adding new suppliers to strengthen supply security.
Major recent development was the long-term agreement of SRF with Chemours for fluoropolymers and fluoroelastomers. The expanded project now costing Rs 745 crore will be implemented in phases and is scheduled to be completed by December 2026.
SRF also inked a pact to buy 300 acres in Odisha to build large chemical facilities. According to management, visibility for the second half also looks strong, with new launches, stable pricing, and continued traction in Specialty and Fluorochemicals.
In the past one year, SRF share price surged 33%.
SRF 1 Year Share Price Chart
Valuations
Let’s now turn to the valuations of the specialty chemicals companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Precision Engineering Stocks in India
| Sr No | Company | EV/EBITDA | Respective Industry EV/EBITDA Median | ROCE |
| 1 | Anupam Rasayan India | 26.1 | 16.0 | 7.3% |
| 2 | Tatva Chintan Pharma Chem | 62.4 | 16.0 | 1.2% |
| 3 | Clean Science and Technology | 22.7 | 16.0 | 29.3% |
| 4 | Navin Fluorine International | 38.1 | 16.0 | 11.7% |
| 5 | SRF | 26.9 | 11.0 | 12.3% |
The numbers fall into a pretty clear pattern. Nearly every company on this list is trading well above the respective industry median. This reflects a premium that the market is willing to assign to firms operating in high-value chemistries and enjoying strong export linkages.
However, sharp premiums also call for caution. While the multiples are elevated for Anupam Rasayan and SRF, the steady execution and long-term visibility support them. Clean Science enjoys a healthier return profile, which partly explains its valuation.
In sharp contrast, the valuation of Tatva Chintan stood out against its current ROCE, indicating that the market was pricing a significant improvement in future performance. Similarly, Navin Fluorine trades at a higher multiple, reflecting expectations around its fluoro-specialty pipeline.
While these companies benefit from favourable demand trends and rising global interest in India’s specialty-chemical capabilities, investors must consider how much of this optimism is already reflected in their stock prices.
Valuations in and of themselves do not make a case for or against an investment, but they do set the bar for what the companies must deliver going ahead. The opportunity remains strong, but it is important to judge if the current prices leave enough room for attractive future returns.
Conclusion
A new phase of global relevance has just started for India’s specialty-chemicals industry. Demand is rising across advanced materials, pharma, energy storage, fluoro-chemicals, and semiconductor-linked chemistries. Simultaneously, global customers are actively diversifying supply chains, giving export-focused Indian firms a unique window of opportunity.
These five companies profiled here illustrate how this transition plays on the ground through long-term contracts, new product launches, expanded capacities, and deeper engagement with multinational clients. However, even strong stories warrant close scrutiny.
Many of these stocks already trade at a premium to their sector medians, reflective of high expectations around growth and profitability. Rising global interest in India’s chemistry strengths is positive, yet it also means that future performance must justify current valuations.
Investors should, therefore, take a holistic view on every investment decision. One would need to look at the balance sheet, project timelines, customer concentration, and visibility on margins rather than relying purely on sector momentum. While the long-term opportunity is powerful, disciplined evaluation will drive how much of this translates into real returns.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. 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 educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to dig deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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