Neogen Chemicals Ltd reported a strong performance in FY25, with revenue rising 13% YoY to ₹778 crore. This growth was driven by higher volumes in its base business (including BuLi Chem) and a contribution of ₹12 crore from its new business, Neogen Ionics. However, pricing across categories remained weak due to global oversupply and soft demand.
Despite a fire incident at the Dahej plant in Q4, which temporarily impacted operations, Neogen’s EBITDA grew 24% YoY to ₹136 crore. This improvement was mainly due to better operating efficiency and cost-saving measures. The EBITDA margin improved to 17.5% in FY25, up from 15.9% in FY24.
The company reported a profit after tax (PAT) of ₹35 crore for FY25. Profit was affected by an exceptional loss of ₹14.08 crore related to damage from the Dahej fire. This included damage to plant equipment, inventory, and other costs. Without this one-time expense, PAT would have been higher.
Earnings per share (EPS) stood at ₹13.20 in FY25, slightly lower than ₹13.96 in FY24.
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Chairman & MD Mr. Haridas Kanani said the company performed well despite a tough global environment and fire-related disruption. He emphasised that the setback is temporary and construction of a replacement plant at Dahej is already underway. He also reaffirmed Neogen’s commitment to growth, especially in the lithium-ion battery materials space.
Neogen is rapidly expanding its battery chemicals capacity through its unit, Neogen Ionics:
Neogen Ionics is planning to form a new subsidiary, Neogen Morita New Materials Limited, for lithium-ion battery materials. The company is in advanced discussions with Japan’s Morita Chemical Industries for forming a Joint Venture in India to manufacture electrolyte salts for domestic and global use.
Due to the fire impact, Neogen has lowered its FY26 revenue guidance to ₹775–₹850 crore, down from the earlier estimate of ₹950–₹1,000 crore.
Established in 1989, Neogen Chemicals is one of India’s leading producers of speciality chemicals, particularly those based on bromine and lithium.
As of May 19, 2025, shares of Neogen Chemicals were trading at ₹1,536.10, down 0.56% for the day. The stock opened at ₹1,533.10 and touched a high of ₹1,554.70 and a low of ₹1,508.00 during the session. The company has a market capitalisation of ₹4,060 crore and is trading at a P/E ratio of 82.06. Its quarterly dividend amount is ₹0.50 per share, translating to a dividend yield of 0.13%. The stock has a 52-week high of ₹2,420.00 and a 52-week low of ₹1,378.05.
Neogen Chemicals has demonstrated strong resilience in FY25, achieving solid growth despite external challenges and a one-off setback. With strategic investments in battery materials, a recovering core business, and a potential JV with Japan’s Morita Chemical Industries, the company remains well-positioned for long-term growth. The temporary disruption due to the fire is being swiftly addressed, signalling a strong rebound ahead in FY26 and beyond.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: May 19, 2025, 11:55 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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