New Delhi, Sept. 29 -- The specialty chemical sector is headed for a tepid finish to the first half of FY26 (H1FY26), grappling with geopolitical headwinds and the lingering effects of US tariffs.

After a mixed performance in Q1FY26, expectations for Q2FY26 are muted. The second quarter is seasonally weak for most bulk and non-agrochemical firms. For agrochemical companies, meanwhile, excess rainfall across key Indian states likely disrupted crop-protection sprays, hurting demand. That, coupled with weaker exports, following pre-tariff buying in Q1, are also expected to weigh on Q2 earnings performance.

Except some pockets, latest chemical prices trends are discouraging as the dynamic tariff scenario has led to a pause in investments by...