Neogen Chemicals Q2 FY27: Revenue Jumps 42% to ₹296 Crore, PAT Soars 144%
Neogen Chemicals reported Q2 FY27 consolidated revenue of ₹296 crore (up 42%) and PAT of ₹8.2 crore (up 144%). Standalone PAT grew 127% to ₹21.1 crore. The company raised ₹600 crore via QIP and approved a ₹45 crore expansion for its Organolithium facility. Battery Chemicals revenue surged to ₹37 crore.
The substantial revenue and profit growth, coupled with strategic expansions in battery chemicals and successful capital infusion, are expected to have a significant positive impact on the company's financial health and market position.
The company reported strong year-on-year growth in revenue and profit, significant expansion in the high-growth battery chemicals segment, and successful fundraising through QIP, indicating positive financial performance and strategic progress.
Neogen Chemicals Limited announced robust financial results for the quarter and half year ended September 30, 2026. The company reported consolidated revenues of ₹296 crore for Q2 FY27, a significant increase of 42% compared to ₹208.7 crore in Q2 FY26. Consolidated Profit After Tax (PAT) surged by 144% to ₹8.2 crore from ₹3.4 crore in the same period last year. Standalone revenues grew by 39% to ₹288 crore, with PAT increasing by 127% to ₹21.1 crore.
The company highlighted strong volume improvements in core segments, driven by Organolithium's expansion into high-growth emerging applications. The Battery Chemicals division, Neogen Ionics (NIL), saw a remarkable revenue surge to ₹37 crore in Q2 FY27 from ₹5.4 crore in Q2 FY26, indicating accelerated scaling in this segment.
Despite challenges like Middle East geopolitical conflicts, supply chain friction, and feedstock cost inflation, Neogen Chemicals demonstrated resilience. EBITDA performance was strong, though consolidated EBITDA margins were impacted by initial fixed-cost absorption at NIL. Interest expenses are expected to decline following term debt reduction and a credit rating upgrade.
Key updates include the successful completion of a ₹600 crore QIP, which was oversubscribed 6.5 times, with proceeds utilized for debt repayment and business growth. The company also received an additional claim amount of ₹152 crore related to the Dahej facility insurance claim. The Board approved the expansion of the Organolithium facility at Patancheru, Telangana, from 300 MTPA to 600 MTPA with an estimated investment of ₹45 crore.
Expansion initiatives in Battery Chemicals are progressing, with significant capacities planned for Lithium Electrolyte Salts and Electrolytes at Dahej and Pakhajan. The company aims to complete its Dahej Phase 1 and Pakhajan Phase 2 Battery Materials projects by February and March 2027, respectively, with a total estimated cost of ₹1,795 crore.
Dr. Harin Kanani, Managing Director, expressed optimism about the company's performance and future outlook, emphasizing the accelerated ramp-up in the Battery Chemicals business and the strategic deployment of QIP proceeds. He noted that the company is well-positioned to capitalize on the growing demand for advanced battery materials and support India's self-reliance vision.
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