Navin Fluorine, Deepak Nitrite, SRF, Aarti Industries: Q3 preview, target prices

As the third quarter earnings season for FY26 unfolds, the spotlight turns to the midcap segment, where a tug-of-war between volume recovery and global headwinds is playing out. 

According to Systematix Institutional Equities, the quarter presents a divergent picture, while specialty chemicals are riding a volume-led recovery, the textile pack is grappling with the tariff shock.

Navin Fluorine (NFIL) is expected to be a performer in terms of topline growth. The brokerage projects a robust 28% year-on-year (YoY) jump in revenue, fueled by the scheduled commissioning of its AHF capacity and strong execution in the CDMO vertical. The brokerage retains a ‘Hold’ rating with a target price of Rs 6,199.

Deepak Nitrite is expected to witness margin expansion due to winter-led efficiency in phenolics, while Aarti Industries is projected to register 11% YoY growth, aided by the resumption of exports to the US. Systematix has a ‘Hold’ rating on both, with target prices of Rs 1,779 and Rs 429, respectively.

Systematix expects SRF revenue to increase 9% YoY, noting that the company is poised to benefit from the customary 2H seasonality, driving an uptick in refrigerant and specialty chemical volumes. The stock has a ‘Hold’ rating with a target price of Rs 3,295.

Vinati Organics is set to see benefits from its ATBS expansion commissioned in November 2025. The brokerage maintains a ‘Hold’ rating with a target price of Rs 1,599. Conversely, Atul Ltd may face divergent trends, with recovery in life sciences being offset by headwinds in performance chemicals pricing, Systematix said. It has a ‘Hold’ rating and a target price of Rs 6,557.  

The narrative for the textile sector is decidedly more cautious. According to Systematix, the sector is still struggling with persistent weakness in global demand and a 50% drag from US tariffs, which has exacerbated near-term pain.

Vardhman Textiles remains a top pick with a ‘Buy’ rating and a target price of Rs 506. The brokerage noted that while revenue growth might be muted, margins are expected to expand as yarn-cotton spreads normalise.

Welspun Living also commands a ‘Buy’ rating with a target price of Rs 160, even though the brokerage forecasts a 14% YoY revenue decline. This drop is attributed to the company absorbing half of the tariff impact to protect its market share in the US, alongside weakness in its flooring business.

On the other hand, Gokaldas is expected to see a 5% YoY revenue dip, while KPR Mill may post a weak quarter due to a decline in sugar segment revenue. Both stocks carry a ‘Hold’ rating, with target prices of Rs 914 and Rs 1,030, respectively.