New Delhi, March 6 -- The Indian chemicals sector has had a rough FY26. Weak demand in an oversupplied market has played spoilsport for a large part of the year. The ongoing tensions in the Middle East could accentuate the pain. Chemical companies that rely on Gulf countries for imports of key raw materials such as crude-based derivatives (propylene, xylene, methanol, styrene, polymers) could feel the heat in the form of a likely near-term supply shock.

According to Emkay Global Financial Services, "As of FY25, Indian chemical companies' Middle East exposure is around 0-9% in terms of revenue, with the highest being for Fine Organic Industries Ltd at 9% and 6% each for Aarti Industries Ltd and Navin Fluorine International Ltd." Higher fr...