Financial Performance (Consolidated Q1 FY27)

  • Revenue: ₹250 crore, up 34% Year-over-Year (YoY)
  • Gross Profit: ₹117 crore, up 37% YoY
  • EBITDA: ₹48 crore, up 53% YoY
  • Profit After Tax (PAT): ₹17 crore, up 67% YoY
  • Earnings Per Share (EPS): ₹6.29 per share (not annualized)
  • Finance costs increased by 64% YoY due to higher debt drawdown for CAPEX funding and increased working capital intensity

Business Segment Performance

  • Organolithium Portfolio: Achieved highest-ever quarterly revenues
  • Battery Chemicals: Achieved highest-ever quarterly revenues
  • Neogen Ionics Limited (subsidiary): Q1 FY27 revenue reached ₹19 crore (vs. ₹5 crore in Q1 FY26)
  • Strong volume growth in Inorganic Chemicals

Dahej Fire Incident Update

  • Cumulative recoveries: ₹164 crore as of June 30, 2026
  • ₹155 crore in on-account insurance claims (including ₹15 crore received in July 2026)
  • ₹9 crore from salvage realization
  • Incidental charges of ₹1 crore incurred and claimed under insurance policy
  • Net claim receivable: ₹186 crore on consolidated basis
  • Reconstruction of Dahej plant complete with trial runs underway; commercial production to begin soon

Fundraising Approval

  • Board approved raising up to ₹600 crore through issue of eligible securities
  • Method: Qualified Institutional Placement (QIP)
  • Currency: Indian rupees or foreign currency
  • Subject to necessary shareholder and statutory approvals

Expansion Initiatives - Battery Chemicals (Neogen Ionics)

Project Cost & Funding

  • Total estimated project cost: ₹1,795 crore for Dahej Phase 1 and Pakhajan Phase 2
  • Q1 FY27 expenditure: ₹218 crore
  • Cumulative expenditure to date: ₹1,298 crore
  • Dahej Phase 1: ₹428 crore project cost, target completion by February 2027
  • Pakhajan Phase 2: ₹1,367 crore project cost, target completion by March 2027
  • Funding: Promoter equity infusion and planned JV partner funding support
  • Morita's $20 million equity contribution toward JV remains committed

Capacity Expansion Details

  • New capacity of 1,000 MTPA for manufacturing Lithium Electrolyte Salts and Additives
  • Trial production ongoing for remaining 1,300 MTPA
  • 1,000 MT to be commissioned by H2 FY27
  • 500 MT additional intermediate to be commissioned in H2 FY27
  • 2,000 MT fully commissioned

Project Execution Status

  • Project completion timelines on schedule:
  • Electrolytes: H1 FY27
  • Electrolyte Salts: H2 FY27
  • Electrolyte: Mechanical assembly complete, trial runs initiated
  • Facility validation and product approvals by domestic battery manufacturers underway
  • Strong engagement with domestic and global cell manufacturers for electrolyte salt supplies
  • Lithium Electrolyte Salts: Provisional approvals secured from 4 major international customers
  • Completed final site audits for 3 US-based electrolyte manufacturers
  • Commercial supplies to begin post-final approvals of plant trials

Management Commentary

Dr. Harin Kanani, Managing Director, stated that Q1 performance was driven by volume gains across core business lines, highest revenue ever in Organolithium portfolio, and strong start at Neogen Ionics. Despite global supply chain pressures and elevated input costs, underlying business fundamentals remain sound. The company reaffirmed previously shared guidance and remains focused on executing strategic CAPEX roadmap.

Company Background

Neogen Chemicals Limited, incorporated in 1989, is a leading manufacturer of Bromine-based and Lithium-based specialty chemicals with over 258 products. Products are used in pharmaceutical and agrochemical intermediates, engineering fluids, electronic chemicals, polymer additives, water treatment, construction chemicals, aroma chemicals, and lithium-ion battery materials for energy storage and EV applications.

Manufacturing Facilities

  • Four manufacturing facilities located in Mahape (Navi Mumbai, Maharashtra), Dahej SEZ (Bharuch, Gujarat), Karakhadi (Vadodara, Gujarat), and Patancheru (Hyderabad)
  • Patancheru facility acquired through merger with Buli Chemicals India Private Limited in January 2025
  • Wholly owned subsidiary Neogen Ionics Limited dedicated to battery materials projects, operating LIB electrolyte facility at Dahej SEZ since April 2024