India chemicals 1QFY27 preview: Disruptions drag on 1Q performance

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India chemicals 1QFY27 preview: Disruptions drag on 1Q performance

7 July 2026

India chemicals EquitiesChemicals

1QFY27 preview: Disruptions drag on 1Q performance India

◆ A quarter impacted by disruptions and uncertainties led to a Saurabh Jain*

muted performance for the sector Analyst, India Materials and Energy

HSBC Securities and Capital Markets (India) Private

Limited

◆ Softening raw material costs after easing geopolitical tensions saurabh2jain@hsbc.co.in

and a pick-up in rainfall can catalyse consumption in 2Q +91 22 6164 0691

◆ Maintain Buy on SRF, DAGRI, UPL, BYRCS, and RALI, Hold * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

ratings on PI and TTCH; sector valuations have turned attractive

A quarter impacted by disruptions and uncertainties. We expect a muted

performance in 1QFY27e given uncertainties due to the Middle East conflict and

delayed arrival of monsoons in India. This altered demand trends, raw material

procurement and led to volatility in pricing creating hesitancy in the trade channels

and a potential spillover of consumption into 2QFY27. We expect price hikes by the

companies to offset higher raw material costs. The macro trends have been weak as

sowing lagged by c23% y-o-y as of 25 June 2026 as per Ministry of Agriculture, India

while rainfall deficit is c20% from 1 June-6 July 2026.

For SRF, we estimate 14%/18% revenue/PAT growth driven by the chemicals and

performance films businesses.

For UPL, we expect 10%/14% y-o-y revenue/EBITDA growth as India and seeds

business drive growth offsetting weather-led challenges in other geographies.

For PI Industries, we estimate 6%/24% revenue/PAT declines due to portfolio-