India's chemical sector shows early signs of recovery in FY27 Q1
India's chemicals sector has begun to recover, with earnings indicating improvement and a median revenue growth of 22% year‑on‑year, according to a recent report. The recovery became more visible in the first quarter of FY27, and 83% of companies reported revenue growth. However, returns on capital are still lagging and may take another two to three years to improve.1
Profitability gains have outpaced the recovery in asset utilisation, with aggregate sector margins rising to 17.4% from 15.5% in the previous quarter, while utilisation of established specialty chemical plants sits between 60% and 75% and newly commissioned facilities between 20% and 30%. The sector is expected to continue its recovery over the next two to three years as recently commissioned plants scale up and utilisation improves.1
Analysts project that India's specialty chemicals market, valued at around USD 36 billion in 2025, could grow to nearly USD 61 billion by 2030 as the recovery progresses.1