4 Chemical Stocks With Strong Capex Plans of Up to ₹6,000 Cr to Add to Your Watchlist

Synopsis: Four specialty chemical companies such as PI Industries, Navin Fluorine, and two others are expanding aggressively through strong capex pipelines, capacity additions, and strategic projects, positioning themselves for long-term growth across agrochemicals, pharma, and advanced materials segments.

India’s specialty chemicals sector continues to attract strong investor interest, driven by global supply chain shifts, rising demand, and capacity expansion. Companies with robust capex pipelines are positioning themselves for long-term growth by scaling manufacturing, enhancing capabilities, and entering high-value segments.

P I Industries Ltd  

P I Industries Ltd is one of the leading Indian agriscience companies. It develops and manufactures crop protection chemicals, with strong R&D and global partnerships, serving both domestic and international markets.

With a market capitalisation of Rs. 44,110 cr, the shares of P I Industries Ltd closed at Rs. 2,907.40 per share, up from its previous close of Rs. 2892.45 per share.  Total capex for 9M FY26 was Rs. 722.5 crore and 9M FY25 was Rs. 648.5 crore, indicating sustained investment in manufacturing capacity and R&D infrastructure.

The Pharma platform continues to scale its CRDMO portfolio, supported by new customer additions and strong demand from large pharma clients. Q3FY26 revenue declined to Rs. 59.9 crore from Rs. 63.7 crore in Q3FY25, while PBT improved to Rs 75.0 crore from a loss of Rs. 56.2 crore. 

For 9MFY26, revenue grew ~50% YoY to Rs. 195.7 crore from Rs. 130.1 crore, with PBT losses narrowing to Rs. 48.5 crore from Rs. 182.7 crore. Growth was driven by new account onboarding, despite one-off costs and higher investments in capabilities and infrastructure, with capex at Rs. 61.6 crore from Rs. 95.4 crore in 9MFY25. 

The company continues to invest in manufacturing, R&D, regulatory capabilities, and global business development, while navigating challenges such as biotech funding slowdown and geopolitical factors.

The company has indicated an initial FY27 capex of around Rs. 500–600 crore, subject to board approval, with updated guidance expected next quarter. It also plans to announce a non-GMP pharma plant in India soon. 

On capital allocation, the company is exploring synergistic M&A opportunities across its businesses without prioritising any specific segment. On the ESG front, it has strengthened its sustainability profile, achieving a 98th percentile ranking in S&P Global’s assessment and earning a place in the Sustainability Yearbook.

Outlook of the company 

The company remains focused on portfolio diversification to drive high-quality revenue, supported by a positive outlook from a strong Rabi season, increasing adoption of new products, and a gradual revival in the biological segment, despite continued pricing pressure in generics.

Growth is expected to be driven by accelerated commercialisation of new products, scaling of recent launches, and a steady flow of new enquiries, with capacity expansion backed by targeted capex and visibility for sequential growth in Q4.

The business is strengthening its global presence through the expansion of GMP facilities in Lodi, Italy, building relationships with biotech and large pharma players, and improving R&D pipeline visibility over the next 1–2 years.

The company is advancing its technology platforms to unlock new opportunities, progressing commercialisation of its own NCEs, maintaining a strong global biologics pipeline, and evaluating inorganic growth opportunities to support long-term expansion, with overall growth momentum expected to pick up from Q4FY26.

Navin Fluorine International Ltd  

The company specialises in specialty fluorochemicals, producing refrigerants, inorganic fluorides, and high-performance fluoro compounds for pharmaceuticals, agrochemicals, and industrial applications.

With a market capitalisation of Rs. 31,387 cr, the shares of Navin Fluorine International Ltd closed at Rs. 6,124.55 per share, down from its previous close of Rs. 6,268.30  per share. 

Ongoing Capex Plans

The company is expanding HFC capacity by up to 15,000 MTPA of R32, supported by favourable global demand-supply dynamics driven by the transition to low-GWP gases and rising RAC demand in domestic and export markets. 

The project involves a capex of ~Rs. 236.5 crore funded through internal accruals and is expected to be commissioned by Q3FY27, with a peak revenue potential of ~Rs. 600–825 crore annually.

The MPP capex focuses on de-bottlenecking capacity at Dahej to support the launch of a new molecule for a global innovator. Backed by strong demand visibility and confirmed purchase orders for CY26, the project entails a capex of ~Rs. 75 crore (internally funded) and is targeted for commissioning by Q3FY27, with an estimated peak revenue potential of ~Rs. 140–160 crore per year.

The company is setting up initial commercial-scale capacity for innovative liquid cooling products while expanding its footprint in emerging advanced materials. This project involves a capex of ~Rs. 120 crore, with 35% funded by a customer and the balance through internal accruals, and is expected to be commissioned by Q1FY27. Revenue potential remains confidential at this stage.

Deepak Nitrite Ltd  

Deepak Nitrite Ltd is an integrated chemical manufacturer producing basic intermediates, fine and specialty chemicals, phenol, and acetone, serving industries like pharmaceuticals, agrochemicals, paints, and detergents. With a market capitalisation of Rs. 18,970 cr, the shares of Deepak Nitrite Ltd closed at Rs. 1,390.85 per share, up from its previous close of Rs. 1,383.05 per share. 

The company plans to spend around Rs. 100 crore in the remaining part of FY26, bringing total capex for the year to approximately Rs. 1,200–1,300 crore. For FY27, it has outlined a higher capital expenditure plan of about Rs. 2,500 crore.

Key Developments

Deepak Chem Tech has commenced manufacturing at its Nitric Acid Plant in Nandesari, Vadodara (Gujarat). This facility strengthens both backward and forward integration across the group’s chemical portfolio, improving supply chain efficiency.

The company has also commissioned a new Nitration and second Hydrogenation plant at Dahej, Bharuch (Gujarat). These additions significantly expand the group’s manufacturing footprint and capabilities.

With these developments, the company enters a select league of global players with full vertical integration across the ammonia–nitration–amines value chain. This integration enhances operational resilience, supports downstream product expansion, reduces exposure to nitric acid market fluctuations, and is expected to drive margin growth, optimize working capital, and improve overall cost efficiency.

Gujarat Fluorochemicals Ltd 

Gujarat Fluorochemicals Ltd produces fluoropolymers, refrigerants, and specialty fluorochemicals, including PTFE, for automotive, electronics, and industrial sectors, with both domestic and international markets.

With a market capitalisation of Rs. 34,977 cr, the shares of Gujarat Fluorochemicals Ltd closed at Rs. 3,184.15 per share, up from its previous close of Rs. 3,164.65 per share. 

The company has announced a greenfield advanced battery materials project in Oman, with an estimated investment of around $216 million (also indicated at ~$260 million in a phased manner). This project is part of its broader Rs. 6,000 crore capex plan for battery materials. The project is expected to be completed in about 18 months, with commissioning targeted between mid and end of 2027.

Strategically, Oman offers key advantages such as favorable trade access through FTAs with the U.S. and India, lower energy costs due to gas and power availability, and the potential development of a supporting raw material ecosystem over time.

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