Neogen Chemicals Ltd
NSE:NEOGEN
Neogen Chemicals Ltd
Neogen Chemicals Ltd. engages in the manufacture of specialty chemicals which are used in pharmaceutical, engineering, and agro chemical industries. The Company’s products include organic chemicals, advance intermediates, inorganic chemicals, chemistries and grignard reagents. The firm operates through three segments: organic chemicals, inorganic chemicals, and custom synthesis and manufacturing. Organic chemicals segment is involved in the manufacturing of organic bromine-based compounds, advanced intermediates, specialty compounds and Grignard reagents. The inorganic chemicals segment is involved in manufacturing inorganic lithium and bromine salts. Custom synthesis and manufacturing segment is involved in developing and manufacturing new processes and customized products.
Neogen Chemicals Ltd. engages in the manufacture of specialty chemicals which are used in pharmaceutical, engineering, and agro chemical industries. The Company’s products include organic chemicals, advance intermediates, inorganic chemicals, chemistries and grignard reagents. The firm operates through three segments: organic chemicals, inorganic chemicals, and custom synthesis and manufacturing. Organic chemicals segment is involved in the manufacturing of organic bromine-based compounds, advanced intermediates, specialty compounds and Grignard reagents. The inorganic chemicals segment is involved in manufacturing inorganic lithium and bromine salts. Custom synthesis and manufacturing segment is involved in developing and manufacturing new processes and customized products.
Revenue Growth: Neogen delivered 9% revenue growth in Q3 FY26, reaching INR 220 crores, driven by steady demand in pharma, flavors, fragrances, and specialty chemicals.
Margin Expansion: Gross profit rose 13% with about 150 basis points margin expansion, though EBITDA and PAT were under pressure from transitional costs.
Transitional Headwinds: Profitability was hit by ramp-up costs for Neogen Ionics, extra expenses from the Dahej fire, reliance on toll manufacturing, and higher finance costs, though much of this is temporary.
Insurance Claims: Neogen received INR 83.48 crores in insurance claims so far, with another INR 210 crores expected by March, supporting cash flows for plant rebuilding.
Battery Materials Strategy: The Indo-Japan Morita JV for LiPF6 salt production was finalized, with Neogen holding 80% and Morita investing $20 million for the rest, providing technology and a China-alternative supply chain.
Guidance Maintained: Despite project delays, management reaffirmed guidance of INR 400-500 crores battery chemicals revenue in FY27, expecting major commercial production from Dahej and Pakhajan plants.
Fundraising: Board approved a preferential equity issue to promoters for up to INR 150 crores, with combined insurance, JV, and promoter inflows of about INR 550 crores expected by Q1 FY27.
Capacity Ramps: Dahej replacement plant and Pakhajan greenfield project are on track, with the former commissioning in Q1 FY27 and the latter targeting electrolyte production in H1 and salt in H2 FY27.
