Downgrades

Clean Science’s (CST) performance was impacted from a dip in volumes owing to demand headwinds and a Chinese customer backward integrating.

Clean Science and Technology (Clean) reported results which were below our expectations. Volumes declined by almost 6% YoY leading to a ~7% decline in standalone revenues. The decline in revenues was owing to drop in sales volumes of established products. This was owing to sharp decline in end product pricing amid high Chinese competitive intensity. End markets of these products for certain customers are also seeing lower demand visibility. The management mentioned that one of the prominent FMCG Chinese customer could also have backward integrated which would mean permanent loss of volumes. However,...

Vinati Organics (VO) reported a strong operating performance in 2QFY26, as EBITDA surged 33% YoY to INR1.8b. Gross margin expanded to 56.5% from 45.8% in 2QFY25, while EBITDAM expanded 850bp YoY to 32.7%. PAT grew 22% YoY to INR1.3b (est. in line).

NOCIL’s 2QFY26 was weak, with revenue declining 12% YoY to INR3.2b. EBITDA also declined 44% due to continued pricing pressure in the domestic market.

Rossari Biotech continues to execute well operationally, leveraging R&D intensity and export expansion to offset pricing headwinds.

SRF Ltd manufactures and sells textiles, chemicals, films and polymers through four business segments Technical, Chemicals, Packaging and Others with diverse product offerings and operations. In Q1FY26, revenue from operations grew 9.9% YoY to Rs. 3,739cr, supported by...

Vinati Organics (VO) reported a strong operated performance in 1QFY26, as EBITDA surged 33% YoY to INR1.7b. Gross margin expanded 710bp to 52%, while EBITDAM expanded 670bp YoY to 30.6%. PAT grew 31% YoY to INR1.1b (our est. INR940m).

Galaxy Surfactants (GALSURF) reported an EBITDA/kg of INR18.4 (est. INR19.3), down 5% YoY, while total volumes increased ~5% YoY to 67.3tmt (vs. est 64.4tmt), supported by robust growth in the RoW region (up 16% YoY) driven by LATAM and APAC.

We downgrade our rating form HOLD to SELL on the stock as the hopes of a turnaround now seem distant.

PIDI continues ~double-digit UVG led by 9.8% UVG in 1Q, along with 150bps EBITDA margin expansion given lower operating expenses & flat GM. PIDI continues to focus on volume-led profitable growth led by its strategy of developing pioneer categories and entering newer segments. B2B continued its...

Neogen Chemicals (Neogen) delivered a fair financial performance in the quarter. The performance was led by higher volumes across various product categories. Revenue for Organic chemicals segment grew by 16% YoY while the revenue for the inorganic chemicals segment declined by 42% YoY. We are cognizant of the slowdown in the overall EV ramp up and delays in customer approval in light of the global tariff uncertainties. However we continue to remain positive on the battery chemicals theme as growth from EVs and Battery Energy Storage Systems (BESS) will necessitate the creation of a domestic supply...

Chemplast Sanmar (CSL) has been enduring challenges over the past two years due to a weak cycle in PVC business; finally, early signs of consolidation have surfaced, and policy action should aid business recovery.

SRF delivered a strong start to FY26, with EBIT surging 41% YoY in 1QFY26. This growth in EBIT was driven by a robust growth of 64%/62% YoY in the chemicals/packaging films businesses, despite a weak summer and ongoing global uncertainties.

Clean Science’s (CST) EBITDA grew only 5.5% YoY despite tailwinds of lower input prices, and HALS offtake. Its established products revenue has grown 8% YoY, while lower sales were due to weak demand for new products.

We upgrade Aarti to BUY from Add and revise up our TP by 5% to Rs 525 from Rs 500 (25x Jun-27E EPS, on rollover); the revision is owing to the recent stock price correction and steep rise in gasoline-naphtha cracks which should raise demand for octane boosters and aid volume growth for MMA (Energy business).

multiple product portfolios. EBITDA margin contracted by 160bps YoY to 13.8%. Volumes in dyes, pigments and polymer additives are encouraging, while the agrochemical demand environment remained challenging. As per management, a volume pick-up is seen across the segments, even though the pricing environment remains subdued due to overcapacity....

Over the past 10 years, GALSURF has demonstrated its ability to scale profitably while navigating cyclical and regional challenges.

Jubilant Ingrevia is one of the leading players in India supplying chemical intermediates to agrochemical innovators for almost 3 decades. The company is now transitioning to become a CDMO player and has already signed 2 contracts for agro CDMO, one of which is worth USD300mn and will start contributing to revenue from Q4FY26. As highlighted in our previous report, 7 more molecules with pyridine chemistry are expected to go off-patent by 2028, thus making Jubilant a good fit to manufacture them. However, unlike...

Aarti Industries’ clocked revenue of Rs. 1,949 crore, marking a 6% q-o?q growth, largely driven by volume recovery across all end applications.

We recommend a BUY on the stock with a target price of Rs 520, implying a 10% upside from the current market price.