4 Chemical Stocks with Strong Growth Plans to Watch in India

#2 Gujarat Fluorochemicals

Next on the list is Gujarat Fluorochemicals.

Gujarat Fluorochemicals (GFL) is one of India's leading fluorochemical companies with over three decades of expertise in fluorine chemistry.

The company is globally recognised for its strong presence in fluoropolymers, fluorospecialties, and refrigerants, serving customers across Europe and the US.

In line with its growth plan, the company is aggressively expanding its battery chemicals business while also strengthening its fluoropolymer and refrigerant portfolio.

According to the company's February 2026 earnings call, Gujarat Fluorochemicals expects FY27 and FY28 to emerge as strong growth years for its battery chemicals segment as commercialisation gradually picks up.

The company highlighted that qualification timelines in the EV and energy storage space remain lengthy, especially for critical products, but initial supplies have already started in certain segments.

Management stated that its LiPF6 business has secured multiple customer approvals, with several electrolyte manufacturers and OEMs already visiting the facilities. The company added that order inflows have begun and are expected to scale up gradually as customer confidence and qualification processes progress.

The company also shared that its LFP cathode material plant has already been commissioned and product samples are undergoing customer qualification.

While revenue contribution from LFP may take a few more quarters, management indicated that visibility for future orders remains strong.

In addition, Gujarat Fluorochemicals expects its PVDF binder business to begin commercial shipments in the second half of FY27, with trials already underway at customer facilities and products being tested in commercial vehicles.

The company noted that nearly Rs 17 bn worth of battery chemical assets have already been commissioned, and management expects existing capacities to move towards full utilisation by FY27-FY28 as global and domestic EV demand improves.

Alongside battery chemicals, Gujarat Fluorochemicals is also expanding its refrigerant business. The company plans to commission its R-32 capacity in phases by December 2027 and intends to target both domestic and global markets, leveraging its strong position in refrigerant gases such as R-125 and R-410A.

On the financial front, over the past three years the company's revenue has seen a growth of 6.2%.

The company's three-year average ROE and ROCE stand at 13% and 18.7%.

Gujarat Fluorochemicals' Financial Snapshot

For more details, see the GUJARAT FLUOROCHEMICALS company fact sheet and quarterly results.

#3 Deepak Nitrite

Next on the list is Deepak Nitrite.

Deepak Nitrite is a leading Indian chemical manufacturing company that produces advanced intermediates, fine chemicals, and phenolics.

It is a major player in the global chemical industry, serving pharma, agrochemical and automotive sectors.

According to the company's 13 February 2026 earnings call, Deepak Nitrite currently has a pipeline of nearly 15 products at different stages of R&D, piloting, and customer validation.

These products cater to high-growth segments such as mining chemicals, flame retardants, personal care, flavours & fragrances, and polymer applications.

Management indicated that many of these products have already been developed at pilot scale, with plant mapping completed using existing assets. Commercialisation is expected to happen gradually over the next several months as customer approvals, stability studies, and validation processes are completed.

The company is also witnessing strong utilisation across key manufacturing assets. Deepak Nitrite stated that its nitric acid, nitration, and hydrogenation facilities are expected to operate at nearly full utilisation levels from Q1 FY27 onwards.

Meanwhile, newer fluorination, chlorination, and diazotization assets are expected to gradually ramp up based on customer demand.

In addition, the company expects a phased ramp-up of its MIBK and MIBC plants during FY27. The company has already started seed marketing for MIBC and is witnessing encouraging customer interest from both domestic and international markets.

Deepak Nitrite is also continuing with large-scale investments to strengthen its manufacturing ecosystem. The company has guided for nearly Rs 25 bn of CAPEX for FY27.

On the financial front, over the past three years the company's revenue has seen a growth of 6.8%.

The company's three-year average ROE and ROCE stand at 16.9% and 22%.

Deepka Nitrite's Financial Snapshot

For more details, see the DEEPAK NITRITE company fact sheet and quarterly results.

#4 Navin Fluorine

Last on the list is Navin Flourine.

The company specialises in specialty fluorochemicals, producing refrigerants, inorganic fluorides, and high-performance fluoro compounds.

It operates major integrated complexes in Surat, Dahej, and Dewas, supplying industries like pharmaceuticals, agrochemicals, and air conditioning.

In line with its growth plan, according to Q4 FY26 earnings conference call, its additional HFC capacity expansion equivalent to 15,000 metric tonnes per annum of R32 refrigerant gas remains on track for commissioning by Q3 FY27.

The HPP business is expected to benefit from favourable global demand-supply dynamics, rising adoption of low global warming potential (GWP) refrigerants, and increasing export opportunities.

In the Specialty Chemicals segment, Navin Fluorine's Dahej multi-purpose plant (MPP) debottlenecking project is progressing well and is also targeted for commissioning by Q3 FY27.

The company further stated that the Chemours project remains on track and is expected to be completed by June-July 2026.

Management highlighted that the company's specialty chemicals growth outlook remains strong, supported by healthy order visibility and a robust project pipeline for FY27.

On the refrigerant gases front, the company noted that regulatory changes allowing additional plant commissioning until 2027 could lead to significant industry-wide capacity additions in India.

Despite the evolving competitive landscape, Navin Fluorine continues to see strong revenue potential from its R32 business, with management earlier indicating a possible revenue opportunity of nearly Rs 6 bn to Rs 8.25 bn over time.

On the financial front, over the past three years the company's revenue has seen a growth of 17.4%, meanwhile, net profit grew at a CAGR of 3.1%.

The company's three-year average ROE and ROCE stand at 13.3% and 14.2%.

Navin Flourine's Financial Snapshot

For more details, see the NAVIN FLUORINE company fact sheet and quarterly results.

Conclusion

According to IBEF report, India's chemical industry continues to play a crucial role in the country's growth story.

Valued at around US$ 250 bn in 2024, the sector is expected to grow to nearly US$ 300 bn by 2028 and could eventually touch the US$ 1 tn mark by 2040.

A major driver behind this opportunity is the China+1 strategy, as global companies increasingly look to diversify supply chains beyond China.

With strong domestic demand, rising exports, and ongoing capacity expansions, many Indian chemical companies are positioning themselves for the next phase of growth.

However, investors should avoid looking at expansion plans alone while evaluating stocks. Execution, demand visibility, balance sheet strength, industry cycles, and valuations are equally important factors that can shape long-term performance.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...