Recovery in chemicals may be delayed until FY25, more downgrades ahead

Further downgrades on the cards as lukewarm demand may weigh on Q3 showing

The chemicals sector's recovery could be delayed until FY25 if the current trends of weak demand and flat pricing continue. Following a subdued September quarter, the revenue and profit performance of listed chemical companies are anticipated to fall short of initial expectations of an improvement. 
 

Despite some price stability, the demand trajectory remains uncertain. A disappointing Q3 and ongoing demand issues could lead to further downgrades for companies in the sector.
 

Specialty chemical majors, after a 17 per cent year-on-year fall in revenues in the September quarter, are expected to report an 18 per cent drop in the top line