Neogen Chemicals Reports 8% Revenue Growth in Q2 Despite Dahej Setback

Neogen Chemicals Limited (Neogen) reported steady financial performance for the quarter ended 30th September 2025. Consolidated revenues reached INR 209 crore in Q2 FY26, achieving 8% year-on-year (YoY) growth.

This growth was attributed to sustained demand and higher volumes across its base business and organolithium portfolio, demonstrating operational continuity despite the temporary unavailability of the Dahej plant.

Neogen Ionics, the battery chemicals subsidiary, contributed INR 5.42 crore in Q2 FY26 revenue.

However, profitability metrics faced pressure. While Gross Profit grew 16% YoY to INR 97 crore, consolidated EBITDA stood at INR 30 crore.

The EBITDA percentage was constrained by higher employee costs (due to incentives and strategic additions), a sharp increase in insurance premiums following the fire incident, and elevated job work/conversion costs.

Consolidated Profit After Tax (PAT) for Q2 FY26 was reported at INR 3 crore. PAT was negatively impacted by increased finance costs related to capital deployed for inventory and the necessary plant rebuild.

Additionally, the consolidated performance was affected because the Lithium-Ion Battery (LIB) business within Neogen Ionics is currently in startup mode. Management noted that the financial pressure is expected to ease once the insurance payout is received, and some increased costs covered under Loss on Profit Insurance will be claimed in FY27.

Dr. Harin Kanani, Managing Director, commented that the performance showed “remarkable operational resilience,” confirming that the core business maintained its volume trajectory despite volatile pricing and geopolitical uncertainty.

The company has engaged outsourced partners to ensure seamless customer supply in the interim, and the Dahej plant rebuild remains on track for completion next year, promising a significant lift to base business growth.

Neogen Chemicals remains strategically focused on the high-growth battery materials segment. This focus is validated by the commencement of commercial-grade Electrolyte supply to domestic manufacturers.

Key progress includes commissioning 200 MTPA capacity for Lithium Electrolyte Salts/Additives and achieving final quality system approval (PPAP) from an Indian Giga scale customer for long-term commercial Electrolyte supply from the Dahej plant.

Furthermore, Neogen Ionics executed a Joint Venture Agreement (JVA) with Morita Investment (MIL), forming Neogen Morita New Materials Limited (NML).

This JV aims to produce solid LiPF6 salt. Notably, this venture is positioned as the only non-FEOC compliant plant for Electrolyte Salt in India utilizing established Japanese technology, offering benefits in cost, speed, and reliability.

In a governance update, the Board approved the separation of the positions of Chairman and Managing Director. Effective October 1, 2025, Mr. Anurag Surana was designated as the Non-Executive Chairman.

To support ongoing projects and expedite the Dahej rebuild, Neogen successfully raised INR 200 crore through the private placement of non-convertible debentures (NCDs).

The Press Release on the Un-Audited Financial Results was signed by Unnati Kanani, Company Secretary and Compliance Officer. This disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.

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