Specialty chemical stocks down

Shares of leading specialty chemicals companies witnessed sharp declines—tumbling as much as 28% from their July 2025 highs—as investors turned cautious over weak near-term earnings and the impact of excessive monsoon rains and U.S. import tariffs on demand and margins.

At the forefront of the fall is Clean Science and Technology, which has plunged 28% from its July peak and now trades near life-time lows—down 58% from its record high of Rs.2,539 hit in January 2022.
Other major losers include Rallis India, Bayer CropScience, PI Industries, Navin Fluorine International, Aether Industries, SRF, Deepak Nitrite, and Tata Chemicals, which have all corrected in the 10–21% range over the same period.

While some producers of refrigerants and intermediates may benefit from short-term order front-loading, analysts expect pricing pressure and lower utilization levels to weigh on Q2FY26 results across most specialty chemical firms.

Investor sentiment remains fragile, as U.S. tariff-related uncertainty continues to cloud recovery prospects for India’s otherwise structurally strong specialty chemicals industry.