Jefferies has flagged a potential setback for Indian chemical exporters following the imposition of a 27% US tariff on chemical imports, warning that companies like Navin Fluorine, PI Industries, UPL, and SRF are among the most exposed.
According to Jefferies, Navin Fluorine could see the sharpest EBITDA impact at around 9% in FY26 if 50% of the tariffs are absorbed. PI Industries may face a 6% hit, while UPL and SRF could see EBITDA contractions of 5% and 3%, respectively.
While the brokerage notes that companies may be able to pass on a portion of the increased costs to US customers, it cautions that US retail prices may rise as a result. This development underscores the rising trade friction risks and their potential earnings impact on India’s specialty chemical exporters.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
