Neogen Chemicals reports resilient performance; Revenue at Rs 220 crore, higher by 9%YoY
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Its operations are distributed across four strategic manufacturing hubs in Maharashtra, Gujarat, and Telangana—including the recently integrated Patancheru facility—with its dedicated subsidiary, Neogen Ionics Limited, spearheading battery material projects from its Dahej SEZ site.
Neogen Chemicals Limited reported a stable financial performance for Q3 FY26, with consolidated revenues reaching Rs 220 crore, marking a 9 per cent year-on-year increase. This growth was primarily fuelled by rising volumes in both Organic and Inorganic chemicals, underpinned by steady demand in non-agchem sectors like Pharmaceuticals and Flavours & Fragrances. Despite capacity bottlenecks at the Dahej facility following a previous fire incident, the company maintained resilient operating volumes through strategic toll manufacturing arrangements. The newly established Neogen Ionics (NIL) division also began contributing to the top line, recording a revenue of Rs 12 crore for the quarter.
Profitability metrics faced temporary pressure due to several transitory factors and expansionary overheads. Consolidated EBITDA stood at Rs 32 crore, impacted by elevated insurance premiums and the costs associated with interim toll manufacturing. Furthermore, Profit After Tax (PAT) was recorded at Rs 4 crore, influenced by higher finance costs related to the reConstruction of the Dahej plant and pre-operative spends for battery chemical initiatives. However, the company expects to recover eligible costs through Loss of Profit insurance claims in FY27 and has already received Rs 83.48 crore toward its fire insurance claim, reducing the net receivable to Rs 251.12 crore.
Looking ahead, Neogen is pivotally positioned in the battery materials sector through its subsidiary, Neogen Ionics, and a landmark joint venture with Japan's Morita Investment Limited. The Greenfield Pakhajan Electrolyte plant is nearing mechanical completion, with commercial production of electrolytes and lithium salts scheduled for H1 and H2FY27, respectively. By leveraging proven Japanese technology and maintaining a non-FEOC-compliant supply chain, Neogen aims to capitalise on the global shift away from Chinese imports and the rollout of India’s Advanced Chemistry Cell (ACC) battery capacities. To support these growth initiatives, the Board has approved a preferential equity issue of up to Rs 150 crore to the Promoter Group.
About the Company
Founded in 1989, Neogen Chemicals Limited has established itself as a premier Indian manufacturer of Bromine-based and Lithium-based specialty chemicals, maintaining a diverse portfolio of over 258 products across organic and inorganic segments. The company serves a wide array of high-growth industries, including pharmaceuticals, agrochemicals, engineering fluids, and aroma chemicals, while also providing specialised custom synthesis and contract manufacturing services. Leveraging three decades of expertise in Lithium chemistry, Neogen is aggressively pivoting toward the electric vehicle and energy storage markets by producing critical lithium-ion battery materials, such as electrolytes and lithium salts. Its operations are distributed across four strategic manufacturing hubs in Maharashtra, Gujarat, and Telangana—including the recently integrated Patancheru facility—with its dedicated subsidiary, Neogen Ionics Limited, spearheading battery material projects from its Dahej SEZ site.
Disclaimer: The article is for informational purposes only and not investment advice.