Neogen Chemicals Approves Q2 FY27 Results, Related Party Transactions, and Capex
Neogen Chemicals reported Q2 FY27 standalone revenue of ₹288 crore and PAT of ₹21.14 crore, with basic EPS at ₹7.60. The Board approved RPTs up to ₹500 crore with NML and NIL, and approved a ₹45 crore capex for Organo-Lithium facility expansion to 600 MT/PA by end of FY28. The company also approved the early redemption of ₹200 crore NCDs.
The approval of substantial related party transactions, a significant capacity expansion project with clear revenue potential, and the early redemption of NCDs are all material events that will have a considerable impact on the company's financial and operational future.
The company reported improved financial results, approved significant related party transactions that support business operations, and announced a strategic capacity expansion, all of which are positive indicators for future growth.
Neogen Chemicals Limited announced the outcome of its Board Meeting held on October 31, 2026. The Board approved the un-audited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026, along with the limited review report.
The company also approved an increase in the threshold for granting loans, corporate guarantees, and making investments up to ₹500 crore. Furthermore, material related party transactions (RPTs) were approved between the Company and its step-down subsidiary, Neogen Morita New Materials Limited (NML), and between its wholly-owned subsidiary, Neogen Ionics Limited (NIL), and NML. These transactions, including granting corporate guarantees, loans, sale/purchase of goods, and leasing of property, are proposed for the period December 8, 2026, to December 7, 2027, and will require shareholder approval via postal ballot.
The Board also approved the pre-mature redemption of 20,000 secured, listed, rated, redeemable, non-cumulative, non-convertible debentures worth ₹200 crore, originally issued on August 12, 2025.
In a significant strategic move, Neogen Chemicals will expand its Organo-Lithium chemicals manufacturing facility at Patancheru, Telangana, from 300 MT/PA to 600 MT/PA of active capacity. This expansion, with an estimated investment of up to ₹45 crore funded by internal accruals or debt, is expected to add ₹150-200 crore in revenue potential and is targeted for completion by the end of the next financial year.
The Board of Neogen Ionics Limited (NIL) approved an increased threshold for loans, guarantees, and investments up to ₹700 crore and advancing loans up to ₹200 crore. NIL's Board also approved RPTs with NML, similar in nature to those approved by the parent company.
The Board of NML also approved RPTs with NIL and the ultimate holding company, Neogen Chemicals Limited, for the period December 8, 2026, to December 7, 2027. Additionally, NML's Articles of Association will be altered, subject to shareholder approval.
Key financial highlights for the quarter ended September 30, 2026, include standalone revenue from operations of ₹288 crore, profit after tax of ₹21.14 crore, and basic EPS of ₹7.60. The balance sheet shows total assets of ₹2,979.75 crore and total equity of ₹1,630.13 crore.
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