1. Aether Industries
- Aether Industries is increasingly shifting toward higher-value CRAMS and contract/exclusive manufacturing, which could provide better margins and stronger customer relationships.
- The company operates across three key verticals: Contract Research and Manufacturing Services (CRAMS), Contract & Exclusive Manufacturing (CEM), and Large-Scale Manufacturing (LSM).
- The key attraction is the increasing contribution from the higher-value CRAMS and CEM businesses, which accounted for around 60% of revenue in Q1 FY27. The company also has more than 65 live CRAMS projects, with a significant proportion outside traditional pharma and agrochemical applications.
- Aether is being selected for its transition toward higher-value manufacturing, growing global customer relationships and potential China+1 opportunities.
2. Aarti Industries
- Aarti Industries has a diversified specialty-chemical portfolio serving industries including energy, agrochemicals, polymers, dyes and pigments, pharmaceuticals and other applications.
- The company’s energy and additives segment contributed approximately 43% of FY26 revenue, while agrochemicals and fertilizers contributed 18% and polymers and additives another 14%.
- The company reported 12% revenue growth and 27% PAT growth in FY26, indicating improving business momentum.
- Another potential catalyst is improving export demand, supported by India’s trade agreements and China’s changing export policies. Recovery across agrochemical, pharmaceutical and polymer value chains could also improve capacity utilization.
- Aarti Industries offers diversified exposure across several specialty-chemical end markets, with potential benefits from demand recovery, exports and backward integration.
3. Anupam Rasayan
- Anupam Rasayan stands out because its growth strategy extends beyond its traditional pharmaceutical-intermediate business into battery chemicals and semiconductor chemicals.
- The company has been expanding its CDMO business while developing opportunities in high-growth areas such as EV batteries, semiconductor chemicals and photoresist-related products.
- One major development is the commencement of commercial supplies from its battery chemicals plant in Q1 FY27. Management also sees a long-term opportunity in semiconductor chemicals as AI-driven demand increases memory-chip production.
- The company is simultaneously moving away from lower-value commodity chemicals toward higher-margin specialty products.
- Anupam Rasayan offers exposure to multiple structural growth themes — pharmaceuticals, EV batteries, semiconductors and AI infrastructure.
4. Privi Speciality Chemicals
- The company manufactures more than 75 aroma chemicals, while approximately 70% of revenue comes through annual contracts. This recurring-contract model can provide greater revenue visibility and partly reduce exposure to raw-material volatility.
- Another competitive advantage is its 51:49 strategic joint venture with JBO, through which more than 40 specialty products are manufactured exclusively.
- Privi delivered 22% revenue growth and 75% PAT growth in FY26, while EBITDA margins improved to approximately 25.8%.
- The company is also expanding capacity, with Phase I expected to increase capacity from 48,000 tonnes to 54,000 tonnes, followed by additional Phase II and Phase III projects.
- Management continues to target ₹5,000 crore of revenue and more than ₹1,000 crore of EBITDA over the next three to four years.
- Privi’s selection is based on its niche global position, recurring contracts, improving profitability and capacity-expansion pipeline.
5. Navin Fluorine International
- Navin Fluorine International provides exposure to fluorochemistry, an area with significant applications across refrigeration, electronics, advanced materials, agrochemicals and pharmaceuticals.The company operates across three major businesses: HPP, specialty chemicals and CDMO.
- HPP was the largest contributor in FY26, accounting for approximately 49% of revenue, while specialty chemicals contributed 35% and CDMO 16%.
- To sustain this momentum, Navin Fluorine is executing approximately ₹432 crore of expansion capex in FY27, including HFC capacity expansion, the Dahej project, debottlenecking and advanced-materials investments.
- Navin Fluorine combines established fluorochemical capabilities with growth opportunities in specialty chemicals, advanced materials and CDMO.
