'Buy' EPL, 'Hold' SRF Among Others Lists ICICI Securities Ahead Of Specialty Chemicals Q1 Results

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ICICI Securities Report

We estimate our specialty chemicals coverage universe’s revenue to grow 10% YoY/ flat QoQ in Q1 FY26E on a low base alongside a gradual demand recovery. Ebitda too, on a low base, could grow 9.8% YoY/ dip 5.8% QoQ with SRF, Navin Fluorine, Gujarat Fluorochemicals, and Archean likely outperforming. Company-wise highlights:

1. SRF’s Ebitda may rise 34.9% YoY on strong growth in specialty chemicals/ref-gas; packaging films Ebit to help given the spurt in spreads.

2. Navin Fluorine’s Ebitda to grow 93.7% YoY aided by stronger performance across segments.

3. Gujarat Fluorochemicals’ Ebitda may grow 25.3% YoY with higher volumes in fluoropolymers.

4. Deepak Nitrite’s Ebitda to dip 39.5% YoY to Rs 1.9 billion on weak agrochemical and advance intermediate. Phenol spreads continue to be depressed.

5. Atul’s Ebitda may rise 5% YoY aided by higher volume off take; but spreads could be under pressure in performance segment.

6. Archean’s Ebitda (47.6% YoY) may improve significantly with volume recovery for salt and prices for bromine.

7. Clean Science’s Ebitda may grow 14.6% YoY on higher volume offtake; margin may rise QoQ as fixed cost for new plants has already been absorbed.

8. Tatva Chintan’s Ebitda may be flat YoY on subdued revenue.

9. Galaxy Surfactants’ volume to grow at 5% YoY; Ebitda/kg may decline 1.5% QoQ, but shall fall short of guidance.

10. Rossari’s Ebitda to dip 4.8% YoY on pressure in revenue/ margin.

11. EPL’s Ebitda (+20.2% YoY) could benefit from lower input prices, steady volume growth and Ebit margin expansion in Americas and Europe.

12. Chemplast’s Ebitda to rise only 3% QoQ even on low base due to depressed spreads in PVC business.

13. PCBL’s volume may grow 2% YoY, but gross profit/kg to dip 10.4% YoY on high base. Aquapharm’s Ebit margin to grow 183bp YoY.

14. Himadri’s Ebitda may grow (+21% YoY) on product mix improvement, and higher gross profit/kg YoY.

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