Downgrades

About the stock: Commencing operations in 1991, Neogen Chemicals Neogen has two segments viz. (i) organic chemicals, (ii) inorganic chemicals which find applications in pharmaceutical intermediates,...

We maintain our HOLD rating on the stock.

Neogen Chemicals (Neogen) delivered a subdued financial performance in the quarter. Profitability was impacted on account of higher employee costs, rise in insurance premiums, increase in finance costs owing to rebuilding of the Dahej MPP (post the fire incident) and lower utilization and startup costs at Neogen Ionics. The demand for Electrolytes and Salts has been delayed by 6 to 12 months owing to the delays in EV ramp up. 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...

We maintain our HOLD rating on the stock.

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,...

Quarterly Update Q2FY26

Alkyl Amines Chemicals (AACL) reported a muted operating performance in 2QFY26 as EBITDA declined 5% YoY. Despite some raw material cost pressure, EBITDA margins expanded marginally by 30bp YoY to 18%.

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).

We upgrade our rating from HOLD to BUY on the stock as the current valuations appear attractive considering the company's long-term growth prospects.

Tata Chemicals (TTCH)’s 2QFY26 consolidated EBITDA declined 13% YoY, led by subdued performance in America (TCNA)/Africa (TCAHL)/Rallis, with EBITDA down 65%/58%/5% YoY due to a weak demand-supply scenario.

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.

Less than the consensus but in line with ARe, Dhanuka Agritech’s Q2 revenue/EBITDA/PAT fell 9/14/20% y/y.

Below consensus and as we estimated, Sumitomo’s Q2 was weak; revenue/EBITDA/PAT fell 6/11/8% y/y. Domestic revenue down 4% y/y to Rs7.7bn; exports down 13% y/y to Rs1.6bn.

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

Recommend a BUY rating on the stock with a TP of Rs 5,140/share, implying an upside of 10% from the CMP.

Quarterly Update Q1FY26

Quarterly Update Q1FY26

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).