Chemicals – Apr-Jun’26 Earnings Preview – Soft quarter anticipated
Published on 07 Jul 2026
Specialty chemical companies within our coverage universe are expected to deliver revenue growth of 12% YoY and 2% QoQ, driven by improved realizations in select product categories and a favorable product mix, while volume growth remains mixed across the sector. EBITDA margin is expected to contract by 40bps QoQ and 100bps YoY, due to a sharp increase in key input costs following the rise in raw material and energy prices amid the West Asia conflict since Mar'26. Companies with exposure to the Middle East faced near-term disruptions during the quarter, as geopolitical tensions affected trade flows, leading to shipment delays and elevated freight costs. While the recent easing of West Asia tensions is expected to support a gradual normalization of logistics and supply chains, the timing of volume recovery remains uncertain as customers continue to maintain a cautious inventory approach. Prices of key refrigerant gases remained elevated and broadly flat on QoQ basis, continuing to support earnings for companies exposed to the fluorochemicals value chain.
