Indian chemical firms' FY26 earnings could be squeezed due to US tariffs

Navin Fluorine International

04/04/2025 08:26

** Indian chemical cos Navin Fluorine NAFL.NS, PI Industries PIIL.NS, SRF SRFL.NS and UPL UPLL.NS to see negative impact on FY26 earnings from U.S. reciprocal tariffs

** Jefferies estimates NAFL's revenue exposure to U.S. at 23%, followed by PIIL (15%), UPLL (10%-12%) and SRFL (8%)

** Estimates NAFL Fluorine and PIIL's operating profit in FY26 could fall by 9% and 6%, while UPLL and SRFL may see core profit decline by 5% and 3%

** Increasing competition in markets outside U.S. and slowing demand due to tariffs to squeeze Indian chemicals sector, says Kotak

** Flags PIIL, Vinati Organics VNTI.NS, Clean Science CLEA.NS, NAFL as firms most exposed to U.S. sales

** NAFL down 3%, PIIL slips 3.9% while VNTI drops 3.4%; SRFL and CLEA down 1.5% each while UPLL falls 1%, per exchange data

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))