Neogen Chemicals Q3 FY26 Revenue Up 9% to ₹220 Cr, PAT at ₹4 Cr
Neogen Chemicals reported Q3 FY26 consolidated revenue of ₹220 crore, up 9% YoY. Consolidated PAT was ₹4 crore, impacted by fire incident costs and expansionary spends. The company expects bulk lithium salt consignments by H1 FY27 and has received in-principle approval for a ₹150 crore preferential issue.
The reported results show mixed performance with revenue growth but a substantial drop in PAT. However, strategic expansions in battery chemicals and a planned preferential issue indicate potential future growth, warranting a medium impact.
The company reported revenue growth, but PAT was significantly impacted by incident-related costs and expansionary spending. While there are positive future outlooks and strategic initiatives, the current quarter's profitability is down year-on-year.
Neogen Chemicals Limited reported stable financial performance for the third quarter and nine months ending December 31, 2025. In Q3 FY26, consolidated revenues stood at ₹220 crore, an increase of 9% year-on-year, driven by higher volumes in both Organic and Inorganic Chemicals. Neogen Ionics (NIL) reported revenues of ₹12 crore for the quarter.
Consolidated EBITDA for Q3 FY26 was ₹32 crore. While sequentially resilient, year-on-year comparisons were impacted by increased overheads for Neogen Ionics, elevated insurance premiums due to a fire incident, and interim toll manufacturing expenses. The company expects to recover eligible costs through Loss of Profit insurance claims.
Consolidated Profit After Tax (PAT) for Q3 FY26 stood at ₹4 crore, further affected by higher finance costs for Dahej plant reconstruction and expansionary spending at Neogen Ionics. Consolidated Earnings Per Share (EPS) was ₹1.40 per share (not annualized).
Standalone performance showed revenues of ₹216 crore (up 8% YoY) and PAT of ₹9 crore (up 39% YoY). Consolidated revenues reached ₹220 crore (up 9% YoY) with PAT at ₹4 crore (down 63% YoY).
Dr. Harin Kanani, Managing Director, highlighted the steady recovery and strategic pivot towards a future-ready portfolio, with strong resilience in the base business and a transformative phase in Battery Materials. Neogen is positioned as a cost-efficient lithium salt and electrolyte source, anticipating bulk consignments by H1 FY27. The Greenfield Pakhajan Electrolyte plant is nearing mechanical completion.
Key updates include ₹83.48 crore received from insurance claims related to the fire incident, with ₹80.00 crore as an on-account payment. The replacement plant is progressing rapidly, scheduled for commissioning in Q1 FY27. The Board has granted in-principle approval to raise up to ₹150 crore through a preferential issue to the Promoter Group, subject to regulatory approvals.
Expansion initiatives in Battery Chemicals include 400 MTPA for Lithium Electrolyte Salts, with 200 MTPA commissioned and trial production ongoing for the remaining. An additional 1,100 MT is expected by March 2026 and 1,000 MT by Q1 FY27. The 2,000 MT Electrolyte plant at Dahej is fully commissioned.
The Indo-Japan Joint Venture with Morita Investment Limited (MIL) for Electrolyte Salt Production, Neogen Morita New Materials Limited (NML), is progressing, with Neogen holding an 80% stake. The JV leverages Japanese technology to enhance production efficiency and market access. Commercial production of Electrolyte is expected in H1 FY27 and Electrolyte Salt in H2 FY27. The company has secured long-term commercial supply approval from a Giga-scale Indian customer for Electrolyte.
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