5 Chemical Stocks to Benefit as US Slashes Tariffs from 50% to 18%

Synopsis: With the reduction in US–India tariffs, several Indian industries have gained relief, especially those dependent on US and North American revenues. The chemical sector stands out, with beneficiary companies reporting YoY net profit growth of up to 190 percent.

The US tariff on Indian goods was cut from about 50 percent to 18 percent under the new interim US- India trade deal announced in February 2026. This rollback reverses the steep punitive and reciprocal duties imposed in 2025, significantly easing the cost burden on Indian exporters.

The US- India tariff reduction significantly benefits the Indian chemical industry, as chemicals account for about 18 percent of India’s total exports to the US, with FY24’s being valued at nearly $ 5.7 billion. Lower tariffs improve export competitiveness, reduce landed costs, and can boost demand, order inflows, capacity utilization, and operating margins for Indian chemical manufacturers.

Improved trade terms also support long-term contracts, stronger supply-chain integration, and higher investments, enhancing India’s global positioning in specialty and industrial chemicals. Better demand visibility can drive stable revenue growth, operating leverage, and earnings expansion, strengthening balance sheets and encouraging capacity additions. The following are the stocks that could majorly benefit from this.

Aarti Industries

Aarti Industries Limited is a leading Indian speciality chemicals manufacturer established in 1984, with expertise in process chemistry and scale-up engineering. It serves global industries like agrochemicals, pharmaceuticals, polymers, dyes, and battery materials across 16 plants and R&D centers. The company exports to over 60 countries, emphasizing sustainability and innovation.

Latest reports highlight resumed MMA and PDCB exports to the US in Q3FY26, driving volume growth. North America being one of the key contributors to the exports, and the total export share stands at 32 percent of revenue historically. Improved capacity utilization and US market recovery boosted overall performance amid cost-saving initiatives.

In Q3FY26, the Aarti Industries saw a YoY revenue growth of 25 percent, going from Rs 1,843 Cr in Q3FY25 to Rs 2318 Cr in Q3FY26, while the QoQ went up by 10 percent from Rs 2,100 Cr in Q2FY26. The YoY Net Profits growth was at 190 percent, going from Rs 46 Cr in Q3FY25 to Rs 133 Cr in Q3FY26, while the QoQ went up by 25 percent from Rs 106 Cr in Q2FY26.

SRF Ltd

SRF Limited, founded in 1970, is a multi-business Indian chemicals conglomerate producing fluorochemicals, specialty chemicals, packaging films, technical textiles, and coated fabrics. It operates 16 plants across India, Thailand, South Africa, and Hungary, employing over 9500  people and exporting to 90+ countries.

Q3FY26 reports state that the company was expecting short term uncertainty due to US market’s tariffs’ developments, while also adding that counter-measures are in place for the same. These points state that the company’s revenue mix has a significant piece coming from the US.

In Q3FY26, the SRF Ltd saw a YoY revenue growth of 6 percent, going from Rs 3491 Cr in Q3FY25 to Rs 3713 Cr in Q3FY26, while the QoQ went up by 2 percent from Rs 3640 Cr in Q2FY26. The YoY Net Profits growth was at 60 percent, going from Rs 271 Cr in Q3FY25 to Rs 433 Cr in Q3FY26, while the QoQ went up by 12 percent from Rs 388 Cr in Q2FY26.

UPL

UPL Limited is a global leader in sustainable agricultural solutions, ranked as one of the largest agrochemical companies worldwide. It offers crop protection products and biosolutions, with operations in 140 countries and 43 manufacturing facilities across the globe..

In Q3FY26, the company saw Rs 1617 Cr worth of revenue coming from the North American business, which has the second largest share in the regional revenue mix, even ahead of India. This share saw the least growth of only 3 percent among other regions’ growth. The company has also stated that it will be expecting the US tariff led uncertainties to be continued in Q4 as well, which tell us a significant revenue share comes from the US. 

In Q3FY26, the UPL saw a YoY revenue growth of 12 percent, going from Rs 10907 Cr in Q3FY25 to Rs 12269 Cr in Q3FY26, while the QoQ went up by 2 percent from Rs 12,019 Cr in Q2FY26. The YoY Net Profits fell by 42 percent, going from Rs 853 Cr in Q3FY25 to Rs 490 Cr in Q3FY26, while the QoQ went down by 20 percent from Rs 612 Cr in Q2FY26.

Aether Industries Ltd

Aether Industries Limited, founded in 2013 and based in Surat, Gujarat, specializes in advanced intermediates and specialty chemicals for pharmaceuticals, agrochemicals, fragrances, and material science. It focuses on complex chemistry, R&D, and sustainable practices with facilities emphasizing high-quality production.

The company’s international footprint includes 21 countries which even includes Spain, Germany, and even the United States of America. In 9MFY26, the company has seen more than 35 percent of its revenue coming from the regions it exports its business goods.

In Q3FY26, the Aether Industries Ltd saw a YoY revenue growth of 44 percent, going from Rs 220 Cr in Q3FY25 to Rs 317 Cr in Q3FY26, while the QoQ went up by 13 percent from Rs 280 Cr in Q2FY26. The YoY Net Profits growth was at 49 percent, going from Rs 43 Cr in Q3FY25 to Rs 64 Cr in Q3FY26, while the QoQ went up by 18 percent from Rs 54 Cr in Q2FY26.

Navin Fluorine International Ltd

Navin Fluorine International Ltd, established in 1967 as part of the Mafatlal Group, is a top Indian fluorochemicals maker with facilities in Surat, Dahej, and Dewas. It produces hydrofluoric acid, specialty fluor chemicals, refrigerants, and offers CDMO services.

As of Q2FY25, the the company witnessing 65 percent of its specialty chemicals revenue incoming from the international markets, where its export market presence includes countries like in Europe, Middle eastern countries, and even the United States of America.

In Q3FY26, the Navin Fluorine saw a YoY revenue growth of 47 percent, going from Rs 606 Cr in Q3FY25 to Rs 892 Cr in Q3FY26, while the QoQ went up by 17 percent from Rs 758 Cr in Q2FY26. The YoY Net Profits growth was at 120 percent, going from Rs 84Cr in Q3FY25 to Rs 185 Cr in Q3FY26, while the QoQ went up by 26 percent from Rs 148 Cr in Q2FY26.

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