Deepak Nitrite, Navin Fluorine, SRF, PI Industries, Gujarat Fluorochemicals: Q2 previews

Speciality chemical companies are likely to see muted sequential performance in the September quarter (Q2FY26), even as year-on-year growth benefits from a lower base, Emkay Global said in its sector preview. The brokerage expects about 6 per cent YoY revenue growth for its coverage universe, with only marginal improvement quarter-on-quarter due to export softness and seasonal weakness.

According to Emkay, tariff-led uncertainty continued to weigh on exports, while domestic demand trends remain relatively better. The brokerage expects Aarti Industries, Gujarat Fluorochemicals (GFL), and Navin Fluorine International (NFIL) to deliver stronger numbers, while PI Industries, SRF, Vishnu Chemicals, Epigral, and GHCL are likely to post a muted show. The broking firm retained a 'Buy' on Atul, Aarti, Epigral, GHCL, and Vishnu; an 'Add' on SRF and Anuras; a 'Reduce' on PI, NFIL, and Deepak Nitrite; and a 'Sell' on GFL.

Emkay noted that the refrigerant business continued to perform well in export markets, even as the domestic market remains weak due to the off-season. The agrochemical segment—both generic and patented—faces contract revisions and a volume slowdown amid tariff uncertainty, with only limited restocking visible. Bulk chemical players may see muted results, hurt by Chinese dumping and soft demand.

SRF
SRF’s chemical business is expected to log strong around 32 per cent YoY revenue growth (flat QoQ), driven by higher volumes in the specialty chemicals segment and a low base. The refrigerant gas business may see improved realisations offsetting some volume loss from an early monsoon and subdued OEM demand. Chemical business EBIT margin is likely to improve to around 27 per cent versus 18 per cent last year. Packaging films may remain under pressure due to global oversupply, though export realizations are slightly better than last year. SRF also announced a strategic partnership with Chemours for its advanced fluoropolymers business during the quarter.

PI Industries
PI’s custom synthesis (CSM) business is projected to decline around 30 per cent YoY (down 20 per cent QoQ), hurt by a high base and lower pyroxasulfone prices amid weak US demand and rising generic competition. New molecules have also seen pressure in export markets. Domestic agrochemical sales may rise 2 per cent YoY, aided by a good monsoon and sowing season, with biological sales recovering. CSM EBIT margin is expected to contract to 28 per cent from 33 per cent a year ago due to operating deleverage.

Gujarat Fluorochemicals (GFL)
GFL is likely to post double-digit YoY growth in its fluoropolymers segment, supported by robust PTFE exports (around 20 per cent YoY). Domestic refrigerant gases could see a 5 per cent YoY uptick with new R32 capacity ramp-up, while specialty chemicals should remain stable. However, bulk chemicals are expected to decline 8 per cent YoY due to continued price pressure, and the battery chemicals vertical has yet to contribute meaningfully to revenue, Emkay said.

Deepak Nitrite
Deepak Nitrite’s revenue is expected to fall 5.6 per cent YoY, reflecting lower phenol-acetone realisations, though it may rise 2.4 per cent sequentially on volume growth in advanced intermediates. Margins could improve slightly as phenol-acetone spreads stabilize and backward integration boosts efficiency. Ebitda may rise 9 per cent QoQ on better operating leverage, even as advanced intermediates revenue dips 5 per cent QoQ.

Navin Fluorine International (NFIL)
NFIL’s high-performance products (HPP) division is set for a strong quarter with 43 per cent YoY growth, aided by higher refrigerant gas realisations, new R32 capacity ramp-up, and continued contribution from the Honeywell contract, Emkay said. Specialty chemicals should grow 33 per cent YoY, while CDMO business may decline 19 per cent YoY. The improved business mix and cost leverage could lift margins to about 27 per cent, the brokerage added.

Aarti Industries

Aarti Industries’ Ebitda is expected at Rs 240 crore versus Rs 200 rcore last year, driven by better operating leverage and delayed bulk shipments (MMA) dispatched in July–August that were postponed from Q1. Revenue is projected to grow 25 per cent YoY on a low base, even as realizations in the MMA-linked energy business remain weaker.

While geopolitical factors kept MMA demand volatile, the company’s discretionary portfolio outperformed the non-discretionary one domestically. Exports, excluding MMA, showed early signs of recovery. Emkay expects Aarti’s Q2FY26 Ebitda margin to soften slightly, given the higher MMA mix, which carries thinner gross margins.

Epigral

Epigral’s chlor-alkali business is expected to remain largely flat sequentially, with revenue of Rs 280 crore (10 per cent YoY; down 6.9 per cent QoQ), as lower caustic soda realizations were offset by volume growth (ECU at Rs 31–32/kg).
The derivatives and speciality chemicals segment is projected to report a 21 per cent YoY revenue decline due to the off-season impact on CPVC and weaker realisations, partly cushioned by stronger ECH prices. Segmental revenue is estimated at Rs 2.9 billion. Ebitda margin is expected at around 23.5 per cent (down 500 bps YoY and 340 bps QoQ), reflecting stable raw material costs and weaker spreads. The company will benefit from a lower tax rate of around 25 per cent in Q2FY26 versus 34–35 per cent in FY25 after full MAT credit utilisation.

Anupam Rasayan
Anupam Rasayan is expected to deliver robust results, with revenue of Rs 460 crore, up 140 per cent YoY, driven by export recovery and liquidation of old inventory in the domestic market. Order book execution has started improving, with higher contributions from LoI-based contracts.

However, margins are likely to narrow as the company clears low-margin legacy inventory. Emkay estimates an Ebitda margin of 22.3 per cent, below management’s guidance of 26–28 per cent. PAT is projected at around Rs 35 crore. The brokerage expects working capital intensity to ease in the second half as inventory levels normalise.

GHCL
GHCL’s consolidated revenue is projected to dip 3.4 per cent QoQ and 3 per cent YoY, weighed down by cheaper imports despite the minimum import price (MIP) regime. Soda ash prices are expected to remain stable in the near term and improve gradually as anti-dumping duties take effect.

Lower prices are unlikely to significantly dent margins, thanks to cost optimisation efforts. Absolute PAT is estimated to be flat at around Rs 140 crore(down 4 per cent QoQ; down 10 per cent YoY), reflecting a higher effective tax rate.

Vishnu Chemicals

Vishnu Chemicals is expected to report a modest revenue increase of 2.7 per cent QoQ and 3.6 per cent YoY, as strong domestic demand offset subdued exports amid US tariff-related uncertainty. While the company faced pricing pressure in short-term contracts, export volumes in the chromium segment remained steady and barium chemicals saw improvement. Lower realizations in chromium will likely be offset by higher barium volumes. Emkay expects Ebitda at Rs 57.10 crore with a 16 per cent margin, and PAT at about Rs 32 crore, broadly flat sequentially.