India's specialty chemicals recover as pharma exports continue strong growth

India's specialty chemicals industry is bouncing back in Q4 FY25, while pharma exports continue to grow at 8-9% backed by sustained demand for drugs such as gRevlimid and Mirabegron. Key players Zydus Life, Sun Pharma and Lupin are seeing rising exports to the U.S.

For specialty chemical companies, the recent month-to-month export trends reflect mixed results amid ongoing global uncertainties. Overall, after challenges in the last 12 months, the specialty chemicals space seems to improving its previous stability. However, while chemical exports are seeing low single-digit growth, price stabilization in some key product segments is now moving towards profitability.

For instance, in February 2025, Vinati Organics reported an annualized month-to-month export growth of 25% year on year and 46% over the previous month. The strong growth is driven by strong exports of ATBS and coupled with already announced 50% capacity expansions, it looks favorable for some more emphatic material growth.

Similarly, SRF Ltd. registered a 9% export growth year on year and 45% growth over the previous month based primarily on the seasonal demand for specialty chemicals and refrigerant gases.  Indian pharmaceutical company exports have seen a steady growth, largely attributed contributing gRevlimdd demand.

In fact, in February 2025, Zydus Life recorded the highest ever recorded monthly export of ? 12,416 crore. Sun Pharma reported exports of ?19,409 for January 2025. Geared up with experience and confident of sustaining its existing growth trajectory, there is the anticipation of ramping up exports as the expiry patent of gRevlimid in Q4 FY26 comes into picture. Also, influence from Mirabegron products helper contribute as well.

Surya Patra, Research Analyst, and Bhavya Sanghavi, Research Associate at PhillipCapital said, "India’s pharmaceutical exports remain strong, largely supported by special drug opportunities such as gRevlimid and Mirabegron. Meanwhile, in chemicals, there are early signs of price recovery, both locally and globally, despite ongoing geopolitical and macroeconomic headwinds. Stable input costs and softening crude prices have provided some relief, but global demand trends remain a key watchpoint."