Indian chemical sector recovery begins, but return on capital may take 2-3 years to recover: Equirus

India's chemicals sector is showing signs of recovery after a downturn in recent years. Median revenue across 72 listed companies grew by 22 percent year-on-year in the first quarter of FY27. However, established and newly commissioned plants operate at low capacity utilisation rates, influencing recovery speed. The long-term demand for India's specialty chemicals market remains strong despite the cyclical downturn.