According to latest shareholding data from BSE, ace investor Ashish Kacholia has reduced his holdings in four companies during Q1FY27. The latest disclosures show he reduced his stake in Yasho Industries to 2.1% from 2.3% at the end of March 2026 quarter, representing a decline of 0.2 percentage points. Additionally, he trimmed his holding in Fineotex Chemicals to 2.06% from 2.60%, marking a reduction of 0.54 percentage points during the quarter. His holding in SG Finserve fell below the 1% disclosure threshold from 2.37% at the end of March 2026 quarter, indicating a likely exit from the non-banking financial company. These moves occurred after the stocks delivered substantial returns of 114% for Yasho Industries and 58% for Fineotex Chemicals in the last six months.
As reported by The Economic Times, the chemical sector faces significant supply chain disruptions due to geopolitical tensions. In the fourth quarter of the last financial year, companies continued to face raw material shortages due to disruptions caused by the West Asia conflict. India's chemicals industry, primarily through higher crude oil prices and supply chain disruptions, has seen elevated input costs that pressure profit margins. Disruptions around the Strait of Hormuz have raised freight and insurance costs while delaying shipments of key inputs, though raw material prices have eased since end-May with gradual improvement in availability.
According to InCred Equities analysis reported by The Economic Times, China's persistent capacity expansion continues to exert significant pressure on the global chemicals industry. Chinese producers, particularly in petrochemicals, intermediates and commodity chemicals, have added capacity well ahead of demand and are exporting surplus output at lower prices, forcing global competitors to either cut prices or lose market share. The brokerage suggests that Indian chemical companies should leverage China's cost advantage rather than compete directly in commoditised products, focusing on moving downstream into higher-value products such as specialty chemicals, formulations, pharma intermediates, and customised CDMO products.
As reported by Axis Direct to The Economic Times, the brokerage expects mixed earnings performance for the chemicals and agrochemicals sector in Q1FY27. The delayed onset of southwest monsoon has pushed Kharif-related agrochemical demand into the second quarter, resulting in a relatively subdued quarter for domestic formulation companies. However, companies with exposure to CDMO, fluorochemicals and refrigerants are expected to outperform due to healthy order execution and favourable product mix. The brokerage believes pricing pressure from Chinese competition will continue to weigh on commoditised chemical manufacturers, limiting margin expansion, while companies supported by strong domestic infrastructure-linked order books may deliver healthy growth through robust execution.
