Neogen Chemicals Limited announced stable financial results for the third quarter ending December 31, 2025. Consolidated revenues grew by 9% Year-over-Year (YoY) to INR 220 crore, driven by strong volume growth in both Organic and Inorganic Chemicals. While profitability faced temporary headwinds from insurance costs and expansion spends, the company highlighted significant strategic progress in its Battery Chemicals vertical, including a new Indo-Japan Joint Venture.
Q3 FY26 Financial Highlights
Neogen Chemicals Limited demonstrated a stable performance for the third quarter ending December 31, 2025. Consolidated revenues reached INR 220 crore, marking a growth of 9% YoY, supported by increased demand and volumes across its chemical segments. Neogen lonics (NIL) contributed INR 12 crore to the Q3 revenue.
Consolidated Performance Summary (INR crore)
- Consolidated Revenues: 220 (up 9% YoY)
- Consolidated Gross Profit: 104 (up 13% YoY)
- Consolidated EBITDA: 32 (up 8% YoY)
- Consolidated Profit After Tax (PAT): 4 (down 63% YoY)
The Consolidated Earnings Per Share (EPS) for Q3 FY26 stood at INR 1.40 (not annualized). The notable decline in PAT was attributed to higher finance costs related to the Dahej plant reconstruction and pre-operative expenses for Neogen lonics.
Management Commentary on Strategic Direction
Dr. Harin Kanani, Managing Director, emphasized a steady recovery and a strategic pivot toward a future-ready portfolio. He noted strong resilience in the core business across non-agchem applications like Pharma, F&F, and others. The company anticipates core operations remaining robust due to demand stability and optimization initiatives.
In the Battery Materials sector, Neogen is positioned to become a cost-efficient source for lithium salt and electrolyte, leveraging proven Japanese technologies. The company expects to finalize approvals for large-scale lithium salt customers, leading to bulk consignments by H1 FY27.
Key Operational Updates
Fire Incident Resolution
- During the Nine months ended December 31, 2025, the Company received INR 83.48 Crore from insurance, reducing the net claim receivable to INR 251.12 Crore.
- The replacement plant construction is progressing rapidly, with commissioning scheduled for Q1 FY27.
Expansion Initiatives Progress
Significant milestones were achieved across expansion projects:
| Project | Status Update |
|---|---|
| New capacity of 400 MTPA for Lithium Electrolyte Salts and Additives | 200 MTPA commissioned; trial production ongoing for the remaining 200 MTPA. |
| Plant for manufacturing 2,000 MT of Electrolyte at Dahej | 2,000 MT fully commissioned. |
Landmark Indo-Japan Joint Venture
Neogen lonics (NIL) concluded a Joint Venture with Japan’s Morita Investment Limited (MIL) to produce, develop, and sell solid LiPF6 salt globally. Neogen will hold a 80% majority stake in the new entity, Neogen Morita New Materials Limited (NML), with MIL contributing $20 million for the remaining 20%. This JV establishes India’s only non-FEOC compliant electrolyte salt plant leveraging proven Japanese technology.
Pakhajan Greenfield Project
Commercial production of Electrolyte (slated for H1 FY27) and Electrolyte Salt (H2 FY27) remains on track. The company has secured long-term commercial supply approval from a Giga-scale Indian customer for Electrolyte and received provisional approvals for Lithium Electrolyte Salts from multiple international customers, with final site audits expected by Q1 FY27.
Source: BSE
