Agrochemical sector set for 6–7% revenue growth in FY26: Crisil

India’s agrochemical industry is expected to witness a 6–7 per cent revenue growth in the current financial year, supported by a revival in global demand and the gradual normalisation of inventories, even as domestic consumption slows due to an extended monsoon, according to a Crisil Ratings report released on Monday.

The agency said improved farm sentiment in key global markets is likely to boost export revenues by 8–9 per cent in 2025–26. However, domestic demand is expected to remain subdued as excess rainfall has caused crop damage, increased product returns and delayed field preparation.

“With realisations stabilising after two years of significant adjustments, the overall growth outlook of 6–7 per cent remains more volume-driven than price-led,” said Anuj Sethi, Senior Director at Crisil Ratings.

The report noted that while exports will remain the primary growth engine, companies may face margin pressures stemming from volatile raw material prices and uneven domestic recovery.