Financial Performance Highlights

Standalone Q2 FY27 Performance:

  • Revenue: ₹288.0 crore, up 39% YoY from ₹206.7 crore in Q2 FY26
  • EBITDA: ₹53.7 crore, up 54% YoY with margins at 18.6% (vs 16.9% in Q2 FY26)
  • PAT: ₹21.1 crore, up 127% YoY with margins at 7.3% (vs 4.5% in Q2 FY26)
  • EPS: ₹7.60, up 115% YoY from ₹3.53

Standalone H1 FY27 Performance:

  • Revenue: ₹540.3 crore, up 38% YoY from ₹391.3 crore
  • EBITDA: ₹101.9 crore, up 46% YoY with margins at 18.9% (vs 17.8%)
  • PAT: ₹40.6 crore, up 72% YoY with margins at 7.5% (vs 6.0%)
  • EPS: ₹14.75, up 65% YoY from ₹8.93

Consolidated Q2 FY27 Performance:

  • Revenue: ₹296.0 crore, up 42% YoY from ₹208.7 crore
  • EBITDA: ₹45.3 crore, up 51% YoY with margins at 15.3% (vs 14.4%)
  • PAT: ₹8.2 crore, up 144% YoY with margins at 2.8% (vs 1.6%)
  • EPS: ₹2.96, up 131% YoY from ₹1.28

Consolidated H1 FY27 Performance:

  • Revenue: ₹546.3 crore, up 38% YoY from ₹395.4 crore
  • EBITDA: ₹93.6 crore, up 52% YoY with margins at 17.1% (vs 15.5%)
  • PAT: ₹25.3 crore, up 86% YoY with margins at 4.6% (vs 3.5%)
  • EPS: ₹9.21, up 78% YoY from ₹5.18

Key Operational Metrics

  • Battery Chemicals division (Neogen Ionics) achieved Q2 FY27 revenue of ₹37 crore (vs ₹5.4 crore in Q2 FY26)
  • Revenue breakdown: 66% domestic, 34% exports (including deemed exports); 80% organic, 20% inorganic
  • Standalone total debt: ₹750 crore in H1 FY27; Net debt: ₹378 crore
  • Consolidated total debt: ₹1,560 crore in H1 FY27; Net debt: ₹1,095 crore
  • Liquid investments (including Fixed Deposits): ₹465 crore as of September 30, 2026

Expansion Initiatives

  • Board approved expansion of Organolithium facility at Patancheru, Telangana from 300 MTPA to 600 MTPA
  • Estimated investment: up to ₹45 crore
  • Additional revenue potential: ₹150-200 crore based on lithium prices

Insurance Claim Status

  • Cumulative recoveries: ₹164 crore to date (₹155 crore insurance claims + ₹9 crore salvage realization)
  • Additional incidental charges of ₹1 crore incurred and claimed
  • On October 29, 2026: Accepted additional claim amount of ₹152 crore from insurance company
  • Total on-account claim received/receivable: ₹316 crore (inclusive of accepted claim and salvage scrap sales)

Fund Raising Activities

  • Raised ₹600 crore via QIP, oversubscribed by 6.5x
  • Proceeds utilized for debt repayment, incremental business requirements, and growth opportunities

Credit Rating Update

  • CRISIL revised long-term rating outlook to 'CRISIL A-/Stable' from 'Negative' for bank facilities (₹680 crore) and NCDs (₹200 crore)
  • Short-term ratings reaffirmed at 'CRISIL A2+'

Neogen Ionics Battery Materials Project

  • Total estimated project cost: ₹1,795 crore (cumulative CAPEX of ₹1,537 crore to date)
  • Dahej Phase 1: ₹428 crore, target completion February 2027
  • Pakhajan Phase 2: ₹1,367 crore, completion expected March 2027
  • Capacity targets: 32,000 MT Electrolyte, 5,500 MT Lithium Electrolyte Salts & Additives

Project Execution Updates

  • Electrolyte: Mechanical assembly complete, trial runs begun, validation with 5-6 giga factories underway
  • Lithium Electrolyte Salts: Provisional approvals from 5 international customers, commercial supply commenced with 2 customers
  • Business Transfer Agreement executed between NIL and Neogen Morita New Materials Limited for lithium-ion electrolyte salt undertaking for ₹245 crore
  • ₹77 crore already infused by Morita through preference allotment

Management Commentary

Dr. Harin Kanani, Managing Director, highlighted robust performance despite macroeconomic challenges including geopolitical conflicts, supply chain friction, and feedstock cost inflation. The Battery Chemicals business is transitioning from capital investment to execution phase with expected substantial scale-up in Q4 FY27 and beyond. The QIP response demonstrated strong market confidence, and insurance claim discussions are progressing constructively.

Seasonal Business Patterns

The company noted stronger financial performance typically occurs in the second half (October-March) due to European demand scaling up in October-November, HVAC segment demand in Q4 linked to capital expenditure benefits, and stronger agrochemicals demand during H2 linked to crop cycles.

Corporate History and Milestones

  • Incorporated in 1989, commenced operations with Lithium salts and organic bromide at Mahape
  • Achieved ₹100 crore turnover by FY16
  • Acquired Solaris ChemTech operations in 2016
  • Signed licensing agreement with MUIS, Japan for electrolyte technology
  • Acquired 100% stake in BuLi Chem in 2023
  • Promoter infused ₹161 crore through preferential allotment

Manufacturing Infrastructure

  • Four manufacturing facilities: Mahape (4,045 m²), Vadodara (161,874 m²), Dahej (43,374 m²), Patancheru (16,187 m²)
  • Total reactor capacity: 438 m³ Organic Chemicals, 39 m³ Inorganic Chemicals
  • All facilities ISO certified with quality control systems

Global Presence

  • Japan subsidiary: Neogen Chemicals Japan Corporation Limited
  • Representative offices in Germany and Korea
  • Export sales accounted for 34% of Q2 FY27 revenue

ESG and CSR Initiatives

  • EcoVadis Silver Medal for 2026
  • ESG risks integrated into Risk Management Committee mandate
  • Zero complaints reported regarding corruption, bribery, or human rights violations