5 ‘Hidden’ stocks that form the secret backbone of India’s booming EV industry – Stock Insights News

Picture the base of a magnificent building, lying unseen under the surface yet carrying the weight of the entire edifice. While going unnoticed, the foundation dictates the height the building can reach and for how long it can remain steadfast. In like manner, in India’s dream electric vehicle (EV) revolution is being built on the foundations of specialty chemicals.

India’s chemical sector has increasingly evolved from commodity chemicals to high-value specialty chemicals. Influenced by greater profitability and tailor-made solutions, such specialty chemicals have emerged as critical in various industries, ranging from pharmaceuticals to agrochemicals.

And now, as India increasingly adopts electric mobility at breakneck speed, specialty chemicals are becoming the unsung backbone behind this revolution. Vital materials like battery electrolytes, binders, cathode materials, and additives are softly driving improvements in battery performance, safety, and longevity, reshaping the very horizon of the EV industry.

Recognizing this, we have shortlisted five specialty chemical firms already significantly entrenched within India’s EV ecosystem, proactively contributing to its development. There are many more specialty chemical companies lined up to join them, further enhancing this lively sector. The below list is indicative and not comprehensive.

#1 Himadri Specialty Chemical

Himadri Speciality Chemical is primarily engaged in the manufacturing of carbon materials and chemicals. It is the No.1 coal pitch manufacturer in India and is the only company to manufacture advanced carbon material in India. It is also the largest player of Naphthalene and SNF in India.

Himadri Speciality Chemical is proactively increasing its presence in India’s EV battery market. It has signed an exclusive tie-up with Sicona, an Australian firm focused on innovative battery materials. Under this partnership, Himadri is localizing and commercializing Sicona’s proprietary Silicon-carbon anode technology (SiCx®) in India. This cutting-edge technology increases battery energy density by a maximum of 20% and charging speed by 40%.

Expanding its plans, Himadri is setting up India’s first commercial Lithium Iron Phosphate (LFP) cathode active material unit outside China. The facility is designed with an overall capacity of 200,000 MTPA, to be built in phases over 5-6 years. The first phase of 40,000 MTPA is slated to start commercial production by Q3 FY2027.

Furthermore, Himadri has made a strategic investment in acquiring a 16.24% holding in International Battery Company (IBC). This will allow Himadri to provide its anode and cathode materials to IBC’s Bengaluru-based lithium-ion battery Gigafactory. Production at the facility is expected to start by Q4 FY2026.

Himadri wants to be a worldwide leader in the EV and battery material business. It is aggressively acquiring sustainable and dependable sources of essential raw materials through strategic collaborations and investments.

In the past one year, its share price has rallied 26.8%.

Himadri Specialty Chemical Share Price Performance – 1 Year Chart

Source: Screener.in

#2 Neogen Chemicals

Neogen Chemicals, incorporated in 1991, manufactures bromine and lithium-based organic and organo-metallic compounds, used in the pharmaceutical, agricultural chemicals, and engineering industries.

The company is actively expanding into lithium-ion battery materials, specifically electrolyte salts and electrolytes used in EV batteries. It has established Neogen Ionics, a wholly-owned subsidiary, dedicated to manufacturing battery electrolyte salts and additives.

Neogen has placed orders for 400 metric tonnes annually of lithium electrolyte salts and additives as of now. Out of this, 200 tonnes capacity is already working, and trial production is in progress for the other 200 tonnes.

Moreover, a new plant with an electrolyte capacity of 2,000 metric tonnes per year is commissioned in full. Trial production with a leading ACC battery maker is underway and commercial production is anticipated in Q1 or Q2 FY26.

Neogen’s long-term plan in EV battery materials is high capacity addition. By September 2025, it will add another 1,100 metric tonnes per annum capacity of electrolyte salts. Thereafter, another 1,000 metric tonnes capacity will come up by March 2026.

In addition, the firm is building a greenfield battery materials plant based on MUIS technology with an operating target of March 2026 or sooner. The plant will help Neogen make its foray into high-growth lithium-ion battery materials at a faster rate, allowing it to capture meaningful market share and end India’s import reliance.

Furthermore, Neogen is forming a joint venture with Morita Chemical Industries, a Japanese company with extensive experience in electrolyte salts. This JV aims to leverage Morita’s proven expertise and technology to enhance product quality, competitiveness, and market access globally.

Neogen’s strategic plans reflect its determination to grab growth opportunities in the EV space. It wants to become a key supplier in India’s cutting-edge battery supply chain, riding the tide of being a local manufacturer at scale.

In the past one year, its share price is up 0.7%.

Neogen Chemicals Share Price Performance – 1 Year Chart

Source: Screener.in

#3 Navin Flourine International

Navin Fluorine International is primary engaged in producing refrigeration gases, inorganic fluorides, specialty organofluorines and offers contract research and manufacturing services. Its portfolio includes 50+ fluorinated compounds developed over the years.

Navin Fluorine International is strategically increasing its footprint in India’s EV battery market. The firm has partnered with BUSS ChemTech AG, Switzerland, through a technology partnership. As part of this agreement, Navin Fluorine would exclusively market solar and electronic-grade hydrofluoric acid (HF). This high-purity HF is a key requirement for the production of lithium-ion batteries for electric vehicles.

The firm is in the process of building a new anhydrous hydrofluoric acid (AHF) plant, to be commissioned in Q2 FY26. The new plant will facilitate Navin Fluorine’s entry into the EV battery materials business, with special emphasis on solar and electronic-grade HF. The AHF facility will greatly augment Navin Fluorine’s production capacity, allowing the firm to address domestic as well as international markets for battery-grade chemicals.

Navin Fluorine’s approach is to use advanced technologies through alliances and frugal capital investments. The new AHF factory will be in step with the anticipated increase in demand for battery chemicals. This will put the firm in the position to capitalize on growth prospects stemming from rising EV penetration in India and worldwide.

Although specific EV battery business revenue percentages are not provided, the strategic investment and foray into high-purity HF distinctly reflect the company’s focus on the EV battery business. Navin Fluorine is going to further expand its capacity, further establishing itself as a leading player in the emerging EV battery materials segment.

In the past one year, its share price has surged 35.3%.

Navin Flourine International Share Price Performance – 1 Year Chart

Source: Screener.in

#4 Tatva Chintan Pharma Chem

Tatva Chintan Pharma Chem was incorporated in 1996 and it is a manufacturer of a diverse portfolio of structure Directing Agents, Phase Transfer Catalysts, electrolyte salts for batteries, and Pharmaceutical and Agrochemical Intermediates and other Speciality chemicals.

Tatva Chintan Pharma Chem is proactively expanding its footprint in the EV battery material space. It has forayed into electrolyte salts specifically for use in energy storage devices. The firm has begun gaining traction with customers utilizing their electrolyte offerings, with volumes increasing from the initial quarter of FY26.

Tatva Chintan has also made significant strides towards advancing electrolyte solutions. It was able to receive formal customer validation of a pilot-scale sample needed to manufacture electrolyte solutions. The firm is currently undertaking small-scale modifications to its current setup. These modifications will allow the commercial supply of high-purity materials for electrolyte solutions. It intends to dispatch commercial-scale samples for the purpose of final customer validation in Q2 FY26.

In addition, Tatva Chintan is in the qualifying stage with another strategic customer. This one is a battery manufacturing business for hybrid vehicles. The response from this customer has been encouraging, solidifying Tatva’s technical fit with customer expectations.

Tatva Chintan sees its electrolyte salts business as a slow but consistent growth segment. It hopes to have this business become a major long-term contributor, keeping pace with world trends towards electrification and green mobility. The company foresees the electrolyte salts business to record around 200% revenue growth in the next financial year, seeing revenue growth from about Rs. 6 crores to Rs. 23-26 crores.

As for future strategy, Tatva Chintan plans to go deeper with customer interaction, transition from electrolyte salts to electrolytes solutions, and increase commercial production capacity. The continuous alterations in its current infrastructure and successful qualifications of customers emphasize its focus on this segment.

In the past one year, its share price is down 7.4%.

Tatva Chintan Pharma Chem Share Price Performance – 1 Year Chart

Source: Screener.in

#5 SRF

Incorporated in 1970, SRF manufactures and sells technical textiles, chemicals, packaging films, aluminum foils, and other polymers.

SRF Limited is increasingly building its position in the EV battery material segment. It is doing so through its business segment of Specialty Chemicals, which is industriously working on fluorinated intermediates that find applications in lithium-ion battery products. These intermediates are key constituents in electrolyte formulation in EV batteries.

The company has established continuous customer interactions in this space. It is in late qualification stages for battery chemicals with cross-border customers. These tests and verifications are on track and form a part of SRF’s long-term growth strategy.

SRF has also started capital investments for creating future capacity for EV-linked fluorochemicals. It is going to increase its capacity for fluorinated specialty molecules and intermediates. These will serve the increasing demand in the global battery and electronics market.

While the company has not provided revenue data specific to its EV battery business, its management has guided that this segment is a strategic priority area. SRF considers the business of battery chemicals as one of its promising growth drivers in the next 3 to 5 years.

In short, SRF is making good progress in the EV business through product development, customer validation, and capacity planning. Its future plans include scaling up fluorinated intermediates and catering to the global demand for battery-grade chemicals.

In the past one year, its share price has rallied 34.4%.

SRF Share Price Performance – 1 Year Chart

Source: Screener.in

Conclusion

The EV industry’s huge opportunity is impossible to ignore. As the planet embraces cleaner mobility, an increasing number of specialty chemical companies are establishing their presence in battery materials. Some are adding capacity. Others are entering worldwide partnerships. Many are developing new chemistries that meet the requirements of lithium-ion batteries.

But though the story of growth is exciting, investors need to proceed with caution. Business potential is only one aspect of the equation. Valuations, profit margins, debt, R&D expenditure, and return ratios need to be taken into account before making an investment decision. Future preparedness is crucial—but so is current-day financial resilience.

An objective perspective, supported by research and cautious comparison, will enable better investment choices in this emerging sector.

Dislcaimer:

Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. 

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only. 

Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to dig deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article. 

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