The specialty chemicals and advanced intermediates industry in India is undergoing a structural shift, with semiconductor-related opportunities opening new growth avenues. Global supply chain diversification away from China, combined with rising demand for high-purity chemicals, is creating a strong runway for Indian players positioned in high-entry-barrier markets like semiconductor-grade photoresists.
Acutaas Chemicals Ltd, with a market capitalisation of Rs. 12,001 crore, is one such stock in focus. The company’s shares currently trade at Rs. 1,466, delivering a stellar one-year return of 85.23 percent, reflecting investor optimism around its expanding portfolio and leadership in niche high-purity chemicals.
Business Overview
Acutaas Chemicals Limited is engaged in research, development, manufacturing, and sale of pharmaceutical intermediates and specialty chemicals across India and global markets. Its pharmaceutical intermediates cater to regulated and generic APIs for therapeutic categories such as anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson’s, antidepressant, and anticoagulant applications.
Beyond pharma, the company manufactures specialty chemicals for batteries, personal care, agrochemicals, coatings, and industrial processes. Importantly, it produces photoresist chemicals used in semiconductor applications, along with electrolyte additives for lithium battery cells. Other offerings include parabens, methyl salicylate, and various commodity chemicals for cosmetics, agrochemicals, and fine chemicals.
The company, founded in 2004 and headquartered in Surat, was earlier known as Ami Organics Limited before being renamed Acutaas Chemicals Limited in May 2025. Today, Acutaas stands as India’s only producer of semiconductor-grade photoresist chemicals—an area requiring ultra-high purity levels down to parts-per-billion. Its strength lies in contamination control, clean process design, and advanced quality systems that meet the demanding benchmarks of semiconductor manufacturing.
Strategic Entry into Semiconductors
In FY2023, Acutaas Chemicals made a strategic foray into the semiconductor space by acquiring a 55 percent stake in Baba Fine Chemicals (BFC), effective April 1, 2023. BFC is known for producing high-value specialty chemicals, including photoresist chemicals critical to semiconductor fabrication. The acquisition provided Acutaas with a gateway into a low-competition, high-barrier industry driven by advanced technology.
Baba Fine Chemicals operates a specialised unit in Greater Noida dedicated to electronic-grade photoresist chemicals. This advanced facility supports both lab-scale and commercial-scale manufacturing under stringent quality protocols.
It features seven dedicated lab rooms with 500-litre glass-lined capacity and 14 glass assemblies with a combined 1,300-litre capacity, enabling efficient scale-up while maintaining product integrity.
The unit aligns with Acutaas’s broader portfolio of 610+ commercialised products spanning semiconductors, battery chemicals, and advanced pharma intermediates. It also underscores the company’s pioneering role as the first Indian firm outside China to develop global electrolyte additives and semiconductor chemicals, strengthening its relevance under the China+1 supply chain strategy.
Global Expansion and Joint Ventures
Acutaas is actively building an international presence in semiconductor hubs such as Japan, South Korea, and Taiwan, markets that demand top-tier chemical performance and purity.
As part of this strategy, the company has formed a joint venture in South Korea named Indichem, with an investment commitment of around KRW 30 billion. Acutaas will hold a 75 percent stake, while its Korean partner contributes technology and market access for the remaining 25 percent.
The new facility will manufacture specialty chemicals for chip production, with capex execution expected to complete by the second half of 2026. Commercial production is projected by late 2026 or early 2027, providing visibility on both product mix and customer base.
Meanwhile, demand from Baba Fine Chemicals’ semiconductor customers has been soft in recent quarters, but Acutaas remains focused on expanding into Korea, Japan, and Taiwan where traction is improving. This geographic diversification is expected to strengthen its semiconductor chemicals business over the medium term.
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Operational Highlights Q1FY26
During the first quarter of FY26, Acutaas reported strong momentum in its Advanced Pharmaceutical Intermediates business, which drove overall revenue growth. Specialty chemicals maintained stability during the quarter. Cost optimisation measures and an improved product mix led to better gross margins, translating into a stronger EBITDA.
Robust EBITDA performance, coupled with growth in other income—largely driven by foreign exchange gains—helped the company deliver a healthy bottom line in Q1FY26.
Financial Performance
Quarter-on-Quarter (QoQ) Performance: Revenue fell from Rs. 308 crore in the previous quarter to Rs. 207 crore in Q1FY26, representing a decline of 32.8 percent. Operating profit dropped from Rs. 85 crore to Rs. 51 crore, down 40 percent.
Profit before tax (PBT) decreased from Rs. 83 crore to Rs. 58 crore, a decline of 30.1 percent. Net profit also moderated from Rs. 63 crore to Rs. 44 crore, marking a 30.1 percent drop.
Year-on-Year (YoY) Performance: On an annual comparison, revenues grew from Rs. 177 crore in Q1FY25 to Rs. 207 crore in Q1FY26, reflecting a 16.9 percent increase. Operating profit surged from Rs. 30 crore to Rs. 51 crore, up 70 percent. PBT rose sharply from Rs. 20 crore to Rs. 58 crore, a growth of 190 percent. Net profit increased from Rs. 15 crore to Rs. 44 crore, recording an impressive 193.3 percent rise.
Business Mix
For FY25, the company derived 85 percent of its revenue from pharmaceutical intermediates and 15 percent from specialty chemicals. The diversified yet high-value portfolio highlights Acutaas’s balanced approach to growth across traditional pharma intermediates and cutting-edge chemical solutions for emerging sectors like semiconductors and batteries.
Outlook
Acutaas Chemicals is positioning itself at the intersection of advanced pharmaceuticals and next-generation specialty chemicals, with a unique edge in semiconductor-grade photoresists.
Its acquisition of Baba Fine Chemicals, global expansion into Korea, Japan, and Taiwan, and upcoming JV-based capacity in South Korea underpin its strategic intent to scale in a high-barrier industry.
While short-term softness in semiconductor demand remains a challenge, the company’s long-term roadmap reflects strong opportunities aligned with global trends in supply chain diversification and semiconductor manufacturing growth.
For investors, Acutaas offers both growth visibility in pharma intermediates and a high-technology optionality in semiconductors, making it a differentiated play in the chemicals sector.
Written By Manan Gangwar
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