Neogen Chemicals Q2 FY27 Revenue up 42% to ₹296 Cr, PAT surges 144% to ₹8 Cr
Neogen Chemicals reported Q2 FY27 consolidated revenue of ₹296 crore, up 42% YoY. PAT surged 144% to ₹8 crore. The company raised ₹600 crore via QIP and received an additional ₹152 crore insurance claim for the Dahej incident. Expansion of Organolithium facility approved with ₹45 crore investment.
The announcement includes significant financial performance improvements, a major fundraising event (QIP), a substantial insurance claim settlement, and strategic expansion plans, all of which are material to the company's financial health and future growth prospects.
The company reported strong year-on-year growth in revenue, EBITDA, and profit after tax, along with positive commentary from the Managing Director regarding future outlook and strategic initiatives. The successful QIP and credit rating upgrade also contribute to a positive sentiment.
Neogen Chemicals Limited (Neogen) reported strong financial performance for the second quarter and half-year ended September 30, 2026. In Q2 FY27 (consolidated), revenues stood at ₹296 crore, a 42% year-on-year increase. This growth was achieved despite challenges including geopolitical tensions, supply chain disruptions, and rising feedstock costs, driven by sustained volume growth and expansion in Organolithium applications.
The company's subsidiary, Neogen Ionics (NIL), saw its Q2 FY27 revenue reach ₹37 crore, a significant increase from ₹5.4 crore in Q2 FY26. Consolidated EBITDA for Q2 FY27 was ₹45 crore, up 51% year-on-year, reflecting improved operational performance despite higher costs related to the Dahej plant rebuild, tolling arrangements, NIL capital expenditure, and elevated input costs. Consolidated EBITDA also reflects initial fixed-cost absorption at NIL, with revenue scale-up and capacity utilization still ramping up, which is expected to drive future operating leverage.
Neogen's profit after tax for Q2 FY27 (consolidated) was ₹8 crore, a 144% increase year-on-year. This growth in PAT was impacted temporarily by higher interest and depreciation costs from ongoing CAPEX initiatives. Interest expenses are anticipated to decline due to term debt reduction using QIP proceeds and lower borrowing costs following a credit rating upgrade. Consolidated Earnings Per Share (EPS) for Q2 FY27 stood at ₹2.96 per share (not annualized).
Dr. Harin Kanani, Managing Director, Neogen Chemicals, commented on the performance, highlighting the company's agility and resilience in a challenging macroeconomic environment. He noted the accelerated ramp-up in the Battery Chemicals business and the strategic importance of the QIP proceeds for de-leveraging the balance sheet and funding growth initiatives. Regarding the Dahej facility insurance claims, he stated that the majority of the recognized claim amount has been received through on-account payouts, with constructive discussions ongoing for the remaining balance. The company has raised ₹600 crore via its first-ever QIP, which was oversubscribed 6.5 times. CRISIL Ratings revised the rating outlook on Neogen Chemicals Limited’s long-term bank facilities and Non-Convertible Debentures to 'CRISIL A-/Stable'.
Key updates include board approval for the expansion of the Organolithium facility at Patancheru, Telangana, from 300 MTPA to 600 MTPA with an estimated investment of up to ₹45 crore. Cumulative recoveries for the Dahej Fire Incident stand at ₹164 crore to date, with an additional claim amount of ₹152 crore accepted from the insurance company on October 29, 2026. The company has also commissioned 200 MTPA of its 1,500 MTPA Battery Chemicals capacity, with another 1,000 MTPA commissioned in Q2 FY27. The Dahej Phase 1 project is targeted for completion by February 2027, and Pakhajan Phase 2 by March 2027.
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