Neogen Chemicals Q3FY26 Earnings Transcript Released; JV with Morita and Funding Updates
Neogen Chemicals reported Q3 FY26 revenue of ₹220 crore, up 9% YoY, with a JV formed with Morita for LiPF6 salt production. The company plans to raise ₹150 crore via preferential issue to promoters and expects ₹550 crore in fund inflows from insurance, JV partner, and promoters by Q1 FY27. Dahej plant commissioning is set for Q1 FY27, and Pakhajan project for H1 FY27.
The formation of a significant joint venture in the high-growth battery chemicals sector, coupled with fundraising plans and progress on new manufacturing facilities, are material developments expected to significantly impact the company's future revenue and market position.
The company reported revenue growth and provided positive updates on strategic initiatives like the JV with Morita and the progress of its greenfield projects. Despite some short-term cost pressures, the outlook for future growth, particularly in battery chemicals, remains strong.
Neogen Chemicals Limited has released the transcript of its Q3 FY26 earnings conference call, which was held on February 12, 2026. The company reported a 9% year-on-year revenue growth for the quarter, reaching ₹220 crore, with gross profit up by 13% and a 150 basis points margin expansion. However, EBITDA and Profit After Tax (PAT) were impacted by transient costs related to the Neogen Ionics ramp-up, elevated operational expenses from a fire incident, and higher finance costs. The company received ₹83.48 crore in insurance claims for the fire incident up to nine months of FY26, with a net claim receivable of ₹251.12 crore. The replacement plant at Dahej is on track for commissioning in Q1 FY27.
In strategic updates, Neogen has formed a joint venture with Japan's Morita Investment Limited, named Neogen Morita New Materials Limited, to produce and sell LiPF6 salt globally. Neogen will hold an 80% stake, with Morita investing $20 million for the remaining 20%. This JV is positioned as India's only non-FEOC compliant electrolyte salt plant with established technology, offering an alternative to the Chinese supply chain. The Pakhajan greenfield project is also progressing, targeting commercial production for electrolyte in H1 FY27 and electrolyte salts in H2 FY27.
The company's CFO indicated that the Board has approved raising up to ₹150 crore via a preferential issue of equity shares to the Promoter Group to support expansion initiatives. The company expects significant fund inflows, including around ₹60 crore from insurance claims within the current week, ₹150-170 crore from the main stock claim before March 2026, $20 million from Morita by Q1 FY27, and ₹150 crore from the Promoter by March 2026 or Q1 FY27. In total, approximately ₹550 crore is expected in the current or next fiscal quarter.
Regarding future guidance, the company maintains its FY27 revenue guidance of ₹400-500 crore from battery chemicals, as the Dahej site is expected to be ready by June 2026, with sales commencing from Q1 FY27 and majorly from Q2 FY27. The company also discussed its capacity expansion plans and the strategic importance of its collaborations and indigenous manufacturing capabilities in the growing battery chemicals market.
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