Best Chemical Stocks in India (2025)

What are Chemical Stocks?

Chemical stocks refer to the shares of companies that are involved in the chemical industry. The chemical industry is a vast and diverse industry. It produces a wide range of products, including basic chemicals and speciality chemicals. Basic chemicals are used as raw materials in various industries, such as plastics, textiles, and pharmaceuticals. Speciality chemicals stocks, on the other hand, are higher value-added products used in specific applications, such as electronic chemicals, paints and coatings, and personal care products.

Overview of the Top Chemical Stocks in India

1. Pidilite Industries Ltd: Founded in 1959, Pidilite Industries is one of India’s top makers of adhesives, sealants, and construction chemicals. Its most famous brand, Fevicol, has become a household name.
2. Solar Industries India Ltd: Founded in 1995, Solar Industries is a leading manufacturer of industrial and defence explosives. Based in Nagpur, it supplies explosives to mining, construction, and infrastructure projects.
3. SRF Ltd: Founded in 1970, SRF is a diversified chemical company that produces fluorochemicals, speciality chemicals, packaging films, and industrial fabrics.
4. Coromandel International Ltd: Founded in 1961, Coromandel International is part of the Murugappa Group. It manufactures fertilisers, crop protection chemicals, and speciality nutrients.
5. UPL Ltd: Founded in 1969, UPL (United Phosphorus Limited) is a global agrochemical company headquartered in Mumbai. It makes crop protection products, seeds, and biosolutions.

How to Invest in Chemical Stocks?

Here is how you can invest in chemical sector stocks in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the best chemical stocks in India that match your investment thesis. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters to choose from, allowing investors to generate different chemical sector share lists for comparison.
3. Place a ‘Buy’ Order on the best chemical company stocks of your choosing.

Budget and Policy Highlights for the Chemical Industry

• Major Budget Allocation: As part of the Union Budget 2025–26, the government allocated ₹1,61,965 cr. ($ 18.7 bn) to the Ministry of Chemicals and Fertilizers to support infrastructure, manufacturing, and research in the sector.
• PLI for Bulk Drug Parks: The government introduced PLI schemes for Bulk Drug Parks with a budget of ₹1,629 cr. ($ 213.81 mn) to enhance local production of raw materials used in pharmaceuticals and chemicals.
• PCPIR Development at Paradip: The Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) at Paradip has attracted investments worth ₹73,518 cr. ($ 8.84 bn) and created employment for about 40,000 people, boosting India’s chemical manufacturing ecosystem.

Benefits of Investing in Chemical Stocks in India

• Diverse Investment Opportunities: The chemical industry is expansive and diverse, encompassing speciality chemicals, agrochemicals, petrochemicals, and more. It allows the companies to generate revenue from multiple sources.
• Global Exposure: Many chemical companies can operate internationally, enabling investors to access global markets and potentially benefit from worldwide economic growth.
• Consistent Demand: Chemicals can be essential in numerous sectors, including agriculture, automotive, construction, and healthcare. Thus, this constant and often non-cyclical demand can bring stability to the chemical industry even during economic downturns.
• Innovation and Research: The chemical industry is renowned for its continuous innovation and research efforts. Any major breakthrough or innovation can have a positive impact on chemical companies’ performance.

Risks of Investing in Chemical Stocks in India

• Regulatory Risks: Strict environmental and safety regulations may result in penalties or operational disruptions. Changes in laws can also increase compliance costs for chemical companies, thereby impacting their performance.
• Raw Material Price Volatility: Many chemical firms rely on petroleum-based inputs, making them sensitive to crude oil price changes. This can directly affect production costs and profit margins, which can impact the chemical share price.
• Environmental Risks: Accidents like spills or emissions can lead to lawsuits, cleanup costs, and reputational damage. These events also pose long-term financial and operational challenges for even the chemical industry.

Factors to Consider Before Investing in Chemical Stocks

• Technological Developments: Technology is rapidly changing the chemical sector, with new innovations emerging all the time. Therefore, before investing, ensure that the companies you are considering invest enough time in R&D to stay ahead of the curve.
• Competition: The chemical sector is highly competitive, with many large players vying for market share. So, before investing, it’s important to analyse the competitive advantage of the stocks you are considering.
• Environmental and Social Responsibility: Some chemicals that are harmful to the planet are harmful to humankind as well. Hence, while investing, it is important to consider whether the companies are following sustainable practices or not.