India’s specialty chemicals show signs of recovery; pharma exports maintain growth

India’s specialty chemicals sector is showing early signs of recovery in Q4 FY25, while pharmaceutical exports continue to grow at 8-9%, driven by strong demand for drugs like gRevlimid (blood cancer treatment) and Mirabegron (overactive bladder treatment). Key companies such as Zydus Life, Sun Pharma, and Lupin have benefited from rising exports to the U.S., while major specialty chemical firms report mixed trends amid global uncertainties, according to PhillipCapital’s Pharma and Chemicals EXIM Monthly Update – March 2025.
 
“India’s pharmaceutical exports remain strong, largely supported by special drug opportunities such as gRevlimid and Mirabegron. Meanwhile, in chemicals, there are early signs of price recovery, both locally and globally, despite ongoing geopolitical and macroeconomic headwinds. Stable input costs and softening crude prices have provided some relief, but global demand trends remain a key watchpoint,” said Surya Patra, Research Analyst, and Bhavya Sanghavi, Research Associate at PhillipCapital .
 
The specialty chemicals sector has faced headwinds over the past year, but Q4 FY25 shows signs of stabilisation. While chemical exports posted muted single-digit growth, price recovery is evident in key segments, which could support profitability going forward.
 
PhillipCapital’s report highlights that Vinati Organics recorded a 25% YoY and 46% QoQ growth in exports in February 2025. “Vinati Organics’ ATBS export surprised positively despite a high base from Q4 FY24. With its ready 50% capacity expansion and global leadership in ATBS, the company is well-positioned for future growth,” the report stated.
 
Meanwhile, SRF Ltd. posted a 45% QoQ and 9% YoY increase in exports, primarily driven by strong seasonal trends in specialty chemicals and refrigerant gases. However, the report noted that “the overall export run rate (particularly for specialty chemicals) remains in line with previous Q4 estimates”.
 
Indian pharmaceutical exports have maintained an 8-9% YoY growth rate, propelled by demand for generics such as gRevlimid. “gRevlimid exports continue to remain sporadic for Indian players; however, for February 2025, Zydus Life recorded its highest-ever export of ₹12,416 crore in a single month since inception. Sun Pharma had supplied ₹19,409 crore in January 2025,” the PhillipCapital report noted.
 
With gRevlimid’s patent expiring in Q4 FY26, Indian pharma companies are expected to accelerate exports before competition intensifies. “We believe all players will ramp up gRevlimid supplies to maximise sales ahead of patent expiry,” the report stated.
 
Another key driver has been Mirabegron, used to treat overactive bladder. Zydus Life and Lupin launched Mirabegron in the U.S. under exclusivity in April 2024, leading to rapid export growth. Since approval, Zydus has exported $326 million worth of Mirabegron, while Lupin’s exports total $101 million.
 
The contract development and manufacturing organisation (CDMO) segment has also seen strong growth. Laurus Labs registered a 63% QoQ export rise, driven by a new CDMO compound supply to Pfizer worth $17 million.
 
Despite positive signs, challenges remain in both pharma and specialty chemicals due to geopolitical tensions and macroeconomic conditions. However, companies with strong export exposure and differentiated product portfolios are likely to benefit as global demand stabilises.