Synopsis: India’s chemicals and fertilizers sector shows strong growth potential, driven by rising demand, policy support, and global supply shifts. This smallcase highlights key companies benefiting from expanding capacity, improving earnings visibility, and long-term sector tailwinds.
The outlook for India’s chemicals and fertilizers sector remains strong, supported by rising domestic consumption and global demand shifts. India is already the sixth-largest chemical producer globally and contributes around 7% to GDP, with demand expected to nearly triple and reach US$ 1 trillion by 2040. Growth is being driven by end-user industries such as food processing, personal care, and agriculture, while exports of chemicals and allied products have already reached US$ 9,194 million in FY26 (April–June).
The sector is also benefiting from structural opportunities like the China+1 strategy and increasing focus on specialty and green chemicals. India’s green chemicals market is projected to grow at a CAGR of over 10% and exceed US$ 15 billion by 2027, while the overall industry size is expected to expand from about US$ 250 billion in 2024 to US$ 300 billion by 2028. At the same time, the fertilizers market is expected to grow from US$ 19.3 billion in 2025 to US$ 25.7 billion by 2033, reflecting steady demand backed by agriculture.
Policy support and investments further strengthen the long-term outlook. The government has allocated Rs. 1,61,965 crore (US$ 18.7 billion) to the Ministry of Chemicals and Fertilizers, while FDI inflows in chemicals have reached US$ 23.4 billion (2000–2025). Overall, the sector is well-positioned for sustained growth driven by capex, policy tailwinds, and global supply chain realignment.
Fertilizer and Chemical Smallcase
Amid a strong outlook of US$ 25.7 billion by 2033, this smallcase focuses on India’s growing chemicals and fertilizers sector, combining established leaders with emerging players. It covers segments like specialty chemicals, agrochemicals, fertilizers, and crop protection, all benefiting from strong agricultural demand and manufacturing growth. The companies selected offer expanding capacity, improving earnings visibility, and solid, scalable business models.
To explore more curated stock ideas from the chemicals and fertilizers space, investors can follow this smallcase, which brings together a diversified portfolio aimed at capturing growth across the sector. It provides exposure to companies benefiting from trends like rising agricultural demand, specialty chemical expansion, and increasing domestic manufacturing.
Click the link below to explore this smallcase and discover curated investment opportunities in India’s growing Fertilizer and Chemical sector.
https://tradebrainsportal.smallcase.com/smallcase/TDBNNM_0009
Himadri Speciality Chemical Ltd
Himadri Speciality Chemical is an Indian company focused on carbon materials and specialty chemicals, particularly coal tar derivatives. It is a major producer of products like carbon black, pitch, and advanced materials used in lithium-ion batteries. The company plays an important role in both traditional industries (like aluminum and tires) and emerging sectors such as energy storage.
With a market capitalisation of Rs. 28,657 cr, the shares of Himadri Speciality Chemical Ltd closed at Rs. 570.60 per share, up from its previous close of Rs. 566.35 per share.
Sales of this company increased from Rs. 1,184 cr in Q3FY26 to Rs. 1,288 cr in Q4FY26. Operating profit slightly fell to Rs. 242 cr from Rs. 243 cr. Net profit aincreased from Rs. 192 cr to Rs. 208 cr over the same period.
The company has shown robust growth, with profit surging at a CAGR of 40% over 10 years, 22% over 5 years, and an exceptional 111% over 3 years, while sales grew at 12%, 21%, and 18% respectively over the same periods.
P I Industries Ltd
PI Industries is a leading agrochemical and fine chemicals company in India, known for its strong presence in crop protection and custom synthesis. It partners with global innovators to manufacture complex molecules and also markets agricultural inputs to farmers. The company has built a reputation for innovation, export strength, and long-term contracts with multinational clients.
With a market capitalisation of Rs. 46,857 cr, the shares of P I Industries Ltd closed at Rs. 3088.45 per share, up from its previous close of Rs. 3,080.40 per share. Sales of this company decreased from Rs. 1,872 cr in Q2FY26 to Rs. 1,376 cr in Q3FY26. Operating profit also fell to Rs. 302 cr from Rs. 541 cr. Net profit decreased from Rs. 409 cr to Rs. 311 cr over the same period.
The company has demonstrated consistent growth, with profit expanding at a CAGR of 21% over 10 years, 30% over 5 years, and 25% over 3 years, while sales grew at 15%, 19%, and 15% respectively across the same periods.
Deepak Fertilisers & Petrochemicals Corp Ltd
Deepak Fertilisers and Petrochemicals is a diversified chemical company involved in industrial chemicals, mining chemicals, and fertilizers. It produces products like nitric acid, ammonium nitrate, and NPK fertilizers, serving sectors such as agriculture, infrastructure, and mining. The company is known for its integrated operations and focus on value-added products.
With a market capitalisation of Rs. 15,616 cr, the shares of Deepak Fertilisers & Petrochemicals Corp Ltd closed at Rs. 1237.05 per share, up from its previous close of Rs. 1,223.45 per share.
Sales of this company decreased from Rs. 3,006 cr in Q2FY26 to Rs. 2,830 cr in Q3FY26. Operating profit also fell to Rs. 353 cr from Rs. 464 cr. Net profit decreased from Rs. 214 cr to Rs. 141 cr over the same period.
The company has posted strong growth, with profit rising at a CAGR of 33% over 10 years, 95% over 5 years, and 11% over 3 years, while sales grew at 10%, 17%, and 10% respectively during the same periods.
Coromandel International Ltd
Coromandel International is one of India’s largest agri-solutions providers, offering fertilizers, crop protection products, and specialty nutrients. Part of the Murugappa Group, it has a wide rural distribution network and focuses on improving farm productivity. The company also invests in sustainable agriculture and innovative solutions for Indian farmers.
With a market capitalisation of Rs. 59,887 cr, the shares of Coromandel International Ltd closed at Rs. 2030 per share, up from its previous close of Rs. 1,994.45 per share.
Sales of this company decreased from Rs. 9,654 cr in Q2FY26 to Rs. 8,779 cr in Q3FY26. Operating profit also fell to Rs. 800 cr from Rs. 1,147 cr. Net profit decreased from Rs. 793 cr to Rs. 488 cr over the same period.
The company has delivered steady long-term performance, with profit growing at a CAGR of 16% over 10 years, 10% over 5 years, and 4% over 3 years, while sales grew at 8%, 13%, and 8% respectively across the same periods.
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