Neogen Q4 FY26 Revenue Up 22% to ₹247 Cr; Board Recommends ₹1 Dividend

Neogen Chemicals Limited reported a robust financial performance for the fourth quarter and full financial year ended March 31, 2026. For Q4 FY26 on a consolidated basis, revenues reached ₹247 crore, marking a 22% year-on-year increase. This growth was achieved despite challenges including the Dahej plant transition, elevated input costs, and geopolitical supply chain disruptions, driven by increased volumes and high plant utilization. Strategic pass-through mechanisms are in place to manage input cost inflation.

Consolidated EBITDA for Q4 FY26 stood at ₹44 crore, a 21% rise year-on-year, with margins sustaining at 17.8%. Performance improvement occurred despite Neogen Ionics expansion overheads, Middle East geopolitical issues, and one-off Dahej replacement/toll manufacturing costs. The company anticipates accelerated momentum post-transition, supported by better fixed-cost absorption as the Pakhajan and Dahej sites scale up, along with eligible insurance recoveries.

Profit after tax (PAT) for Q4 FY26 (consolidated) was ₹11 crore, aligned with the strong overall performance. The base quarter had one-off expenses related to the Dahej fire incident, impacting the year-on-year comparison. Finance costs increased due to CAPEX deployment for Neogen Ionics and the Dahej facility rebuild. Consolidated Earnings per share (EPS) for Q4 FY26 was ₹4.32 per share.

The Board of Directors has recommended a final dividend of ₹1 per equity share for FY26, subject to shareholder approval. Neogen Ionics (NIL) recorded ₹13 crore in revenue for Q4 FY26.

For the full fiscal year FY26, consolidated revenues were ₹862 crore, an 11% increase year-on-year. EBITDA was ₹137 crore (1% growth), and PAT was ₹29 crore (a 17% decrease).

Dr. Harin Kanani, Managing Director, highlighted the company's operational resilience and strong Q4 & FY26 performance amidst a challenging geopolitical backdrop. He noted that input cost inflation is largely a pass-through, protecting core profitability. Promoters have infused ₹161 crore of capital to support expansion plans, reflecting confidence in Neogen's long-term growth. Neogen Ionics is strengthening its position in India's lithium-ion battery materials ecosystem, aligning with the 'Atmanirbhar Bharat' vision. The Pakhajan Greenfield Project timelines remain on track, with Electrolyte expected in H1 FY27 and Electrolyte Salts in H2 FY27. Trial runs have commenced for the specialized MUIS Electrolyte plant. Provisional approvals have been received from additional international customers for Electrolyte Salts, with final site audits underway.

FY27 is projected to be transformative with the commissioning of one of India's largest greenfield facilities for Battery Materials at Pakhajan. Neogen Ionics' Dahej plant has also received audit approval from three US-based electrolyte makers and will scale up this year. The standalone operations are expected to resume a normalized growth trajectory, with the replacement plant at Dahej anticipated to be commissioned by June 2026. Based on these drivers, Neogen is confident of achieving standalone revenues in the range of ₹875–950 crore in FY27, with full production from MPP-5 starting in Q2 FY26.

Key updates include cumulative on-account insurance claims received to date of ₹140 crore for the fire incident, with ₹60 crore received in Feb 2026. The net claim receivable is ₹203 crore, and the replacement plant commissioning is expected by June 2026. A preferential allotment of 10 lakh equity shares to a promoter group entity for ₹161 crore has been approved, at an investment of ₹1,610 per share, to fund Neogen Ionics expansion, working capital, and general corporate purposes.

Expansion initiatives include capacity of 1,500 MTPA for Lithium Electrolyte Salts and Additives, with 200 MTPA commissioned and trial production ongoing for the remaining 1,300 MTPA. New capacity of 1,000 MTPA for Lithium Electrolyte Salts and Additives is planned for commissioning by Q3 FY27, along with 500 MT additional intermediate. A plant for manufacturing 2,000 MT of Electrolyte at the Dahej facility is fully commissioned.

Neogen Ionics has revised project timelines and capital outlay for its Dahej Phase 1 and Pakhajan Phase 2 Battery Materials projects to an aggregate cost of ₹1,795 crore. Dahej Phase 1 cost is revised to ₹428 crore (completion by Feb 2027), and Pakhajan Phase 2 cost to ₹1,367 crore (completion by March 2027). These revisions are due to design optimization, adoption of Japanese technologies, and increased localization. Morita's equity contribution of $20 million to the Joint Venture is scheduled for infusion by Q1 FY27.