Neogen Chemicals Q3 FY26 Earnings Presentation: Focus on Battery Materials and Expansion
Neogen Chemicals reported Q3 FY26 consolidated revenue of ₹220 crore (up 9% YoY) but PAT declined 63% to ₹3.7 crore due to increased costs. The company is expanding battery materials capacity with ₹1,500 crore CAPEX and formed a JV with Japan's Morita Investment for LiPF6 salt. Replacement plant for fire incident to be commissioned in Q1 FY27. Board approved ₹150 crore preferential issue to promoter group.
The announcement includes crucial updates on financial performance, ongoing expansion projects in the high-growth battery materials segment, a significant joint venture, and progress on recovery from the fire incident. The capital raise further signals commitment to growth, impacting investor sentiment and strategic outlook.
While the company reported revenue growth, the significant drop in PAT and EBITDA due to fire-related costs and expansionary expenses indicates a mixed financial performance. The strategic focus on battery materials and the JV are positive long-term developments, but near-term profitability is impacted.
Neogen Chemicals Limited has released its Earnings Presentation for the Un-Audited Financial Results for the quarter and nine months ended December 31, 2025. The presentation details the company's financial performance, expansion initiatives, and strategic focus on battery materials.
For the third quarter of FY26, Neogen Chemicals reported consolidated revenue of ₹220.0 crore, an increase of 9% compared to ₹201.4 crore in Q3 FY25. However, consolidated EBITDA saw a decline of 8% to ₹31.9 crore from ₹34.6 crore in the same period last year, primarily due to increased overheads for Neogen Ionics (Battery Chemicals), higher insurance premiums following a fire incident, and interim toll manufacturing expenses. Consolidated Profit After Tax (PAT) was ₹3.7 crore, a significant decrease from ₹10.0 crore in Q3 FY25, impacted by higher finance costs related to Dahej plant reconstruction and expansionary spends in Neogen Ionics.
Standalone revenue for Q3 FY26 stood at ₹215.6 crore, an 8% increase year-on-year, while standalone EBITDA decreased by 4% to ₹36.3 crore. Standalone PAT declined by 39% to ₹8.8 crore from ₹14.4 crore in Q3 FY25.
The company provided an update on the fire incident, stating that it has received ₹83.48 crore in insurance claims, with a net claim receivable of ₹251.12 crore as of the reporting date. The construction of the replacement plant is progressing rapidly, with commissioning scheduled for Q1 FY27.
Neogen Chemicals is significantly expanding its battery chemicals business through Neogen Ionics (NIL). The company is developing manufacturing capacities for Electrolyte and Lithium Electrolyte Salts, with planned capacities reaching 30,000 MT and 5,500 MT respectively by FY27. The aggregate CAPEX for these initiatives is ₹1,500 crore, with a peak revenue potential of ₹2,500 to ₹2,950 crore by FY29.
A key development is the Joint Venture with Japan's Morita Investment Limited (MIL) to produce and sell solid LiPF6 salt globally. Neogen will hold an 80% stake in the new entity, Neogen Morita New Materials Limited (NML). This JV leverages Japanese technology to enhance production efficiency and access international markets, positioning India as a non-FEOC compliant supplier.
The Pakhajan Greenfield Project for Electrolyte and Electrolyte Salt production is on track, with commercial production expected in H1 FY27 and H2 FY27, respectively. The company has secured long-term commercial supply approval from a Giga-scale Indian customer for Electrolyte.
Dr. Harin Kanani, Managing Director, highlighted the steady recovery and strategic pivot towards future-ready portfolios, emphasizing the resilience in the base business and the transformative phase in battery materials. He expressed confidence in Neogen Ionics becoming a cornerstone of growth, leveraging proven Japanese technologies and the growing demand for non-FEOC compliant materials.
The Board has also granted in-principle approval to raise up to ₹150 crore through a preferential issue of equity shares to the Promoter Group, subject to regulatory approvals, reinforcing their commitment to the company's growth.
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