Top chemical companies in India in terms of revenue and profits

The Indian chemical industry serves as a fundamental pillar for a multitude of sectors, providing essential materials for textiles, paper, paints, soaps, detergents, pharmaceuticals, and agrochemicals.

With global prominence, India ranks as the 6th largest chemical producer worldwide and holds the 3rd spot in Asia, backed by its 14th position in chemical exports.

The country’s agrochemical production claims the 4th spot globally, contributing over half of technical-grade pesticides. Thriving at a rate of 1.2 to 1.5 times the GDP, the Indian chemical sector’s growth remains robust.

India dominates as the largest producer and exporter of castor oil, commanding 85% to 90% of the global segment’s exports. The sector’s market size amounts to approximately USD 178 billion, with an ambitious trajectory highlighted by a projected Rs 8 lakh crore investment by 2025.

Exporting to 175 countries and constituting 13% of total exports, India’s chemical contributions resonate internationally. As the world’s second-highest chemical fertilizer producer and consumer, the nation has seen a 75% increase in per-hectare fertilizer consumption over the past two decades, exemplifying its remarkable agricultural and chemical synergy.

For the analysis, we have considered nearly 16 companies with a market capitalization exceeding Rs 10,000 crore, without any upper limits on the upside. We have categorized them based on the company’s sales growth, operating profit margin growth, and net profit growth.

Companies witnessed an increase in their sales YoY:

Companies that improved their margins or remained relatively stable:

 Following are the companies that registered growth in net profit or remained flat:

While observing the performance of chemical stocks with a market capitalization of more than Rs 10,000, as per the criteria set for this article, it is evident that over the last year, these stocks have not delivered an impressive return. The highest return recorded was 28%, while some stocks have experienced flat to negative returns of 38% during the same period.