Indian chemicals: From market darlings to a slow recovery

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India’s specialty chemicals sector is emerging from a downturn marked by excess capacity, weak demand and margin pressure, according to Equirus Capital. Capex doubled between FY21 and FY26, even as returns on capital fell sharply, weighing on investor sentiment. Listed companies’ revenue rebounded in FY26, with CRAMS/CSM/CDMO leading revenue CAGR over FY20–26. Margins are now recovering and inventories normalising. Momentum strengthened further in Q1FY27, with broader revenue growth and sequential margin improvement. Despite the recent challenges, the market is projected to grow from $36 billion in 2025 to $61 billion by 2030.

Published on October 13, 2026

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