India Waives Customs Duty on Petrochemicals: 5 Stocks That Stand to Gain

India Waives Customs Duty on Petrochemicals: 5 Stocks That Stand to Gain

The Indian government on April 2 exempted customs duty on approximately 41 critical petrochemical products, effective until June 30, 2026. The move comes as the escalating US-Iran conflict in West Asia has sent crude oil prices surging, threatening supply chains for industries that rely on petroleum-derived raw materials. The duty relief, estimated to cost the exchequer around Rs 1,800 crore over three months, is designed to shield domestic manufacturers in plastics, textiles, auto components, and chemicals from a cost shock.

For retail investors, the question is straightforward: which companies stand to benefit the most? We dug into corporate filings on NSE to find the answer.

1. Filatex India (FILATEX) -- Polyester Yarn

Filatex is one of India's largest polyester yarn manufacturers, with production capacity exceeding 3.9 lakh metric tonnes. Per their FY25 annual report, the company reported revenue of INR 4,252 crore and EBITDA of INR 257.7 crore. Their primary raw materials -- PTA (purified terephthalic acid) and MEG (mono ethylene glycol) -- are petrochemical derivatives directly linked to crude oil prices. Management noted in their FY24 results that EBITDA improved from INR 45 crore to INR 75 crore in a single quarter when raw material pricing stabilised. A customs duty waiver on these inputs could provide a similar margin tailwind, even as crude itself rises.

2. Polyplex Corporation (POLYPLEX) -- PET Films

Polyplex manufactures BOPET (biaxially oriented polyethylene terephthalate) films used in packaging and industrial applications. Per their annual report, PET resin -- derived from PTA and MEG -- is "the single-largest component of total production costs." The company reported normalised EBITDA of INR 751.81 crore on revenue of INR 6,869 crore in FY25, with EBITDA margins recovering to 11% from a trough of 8%. The filing notes that selling prices are renegotiated monthly or quarterly, meaning there is typically a one-to-three-month lag before raw material cost changes flow through. The duty waiver could provide a meaningful cost reduction in Q1 FY27 before selling prices adjust downward -- a window of margin expansion.

3. Deepak Nitrite (DEEPAKNTR) -- Phenol and Acetone

Deepak Nitrite is India's leading phenol-acetone manufacturer, operating its plant at over 120% utilisation. Per their annual report, revenues grew to Rs 4,986 crore in FY23. Their key raw materials -- benzene and propylene -- are core petrochemical imports. The company disclosed that EBITDA margin stood at 14%, achieved "despite weak global demand and price increases in key raw materials such as propylene and benzene combined with high prices of coal." A customs duty reduction on benzene and propylene would directly lower input costs for their phenol complex, which produces high-volume import substitutes used across laminates, automotive, construction, and pharmaceuticals.

4. Styrenix Performance Materials (STYRENIX) -- Polystyrene and ABS

Styrenix manufactures polystyrene and ABS (acrylonitrile butadiene styrene), both downstream petrochemical products used in packaging, appliances, and automotive. Their annual report shows EBITDA margins compressed sharply from 37% to 22.4% over two years due to market volatility and raw material dynamics. Styrene monomer, their key feedstock, is a crude-oil derivative that India largely imports. The duty exemption on styrene and related intermediates directly benefits Styrenix, which has maintained a net profit margin of 14.8% and a return on net worth of 37%. Any cost relief on imported styrene monomer flows almost directly to the bottom line.

5. Apollo Tyres (APOLLOTYRE) -- Tyres

Apollo Tyres is one of India's largest tyre manufacturers. Per their annual report, the company experienced an approximately 11% increase in raw material costs in one year, driven by higher natural rubber prices and rising crude-based synthetic rubber costs, compounded by rupee depreciation. The company reported an operating margin of 16.84%. Crude-derived materials -- synthetic rubber, carbon black, and nylon tyre cord -- make up a significant portion of their input basket. With the customs duty waiver covering key petrochemical intermediates, Apollo stands to see some relief on the synthetic rubber and carbon black front, helping protect margins at a time when crude prices are elevated.

What retail investors should do

This duty waiver is temporary -- it expires June 30, 2026. That means the benefit is real but time-bound. Companies with the highest raw material cost as a percentage of revenue (like Filatex and Polyplex, where petrochemical inputs dominate costs) will see the most meaningful margin relief. Auto and tyre companies like Apollo benefit too, but their raw material basket is more diversified.

The key risk: if crude oil continues rising due to the West Asia conflict, the duty waiver may only partially offset the damage. Watch for Q1 FY27 quarterly results (July-August 2026) to see which companies actually captured the margin benefit.

Don't chase these stocks purely on the duty waiver news -- but if you already hold positions in downstream petrochemical consumers, this policy provides a near-term floor under margins that the market may not have fully priced in.

Data sourced from company filings on NSE via Xaro.