Neogen Chemicals Q3 FY26 Earnings: Revenue Rises 9% YoY; Battery Materials Expansion Gains Pace

Neogen Chemicals reported a stable performance for the quarter ended December 31, 2025. On a consolidated basis, revenue reached ₹220 crore, showing a 9% year-on-year increase supported by higher volumes in both organic and inorganic chemicals. 

EBITDA stood at ₹32 crore and remained steady compared with the previous quarter. Profit after tax came in at ₹4 crore due to higher finance costs linked to plant reconstruction at Dahej and expansion spending in Neogen Ionics. Earnings per share for the quarter stood at ₹1.40.

Standalone and Consolidated Snapshot

On a standalone basis, revenue was ₹216 crore, up 8% year-on-year, while EBITDA rose 4% to ₹36 crore and profit increased 39% to ₹9 crore.
On a consolidated basis, revenue grew 9% to ₹220 crore, gross profit rose 13% to ₹104 crore, EBITDA increased 8% to ₹32 crore, and profit rose 63% to ₹4 crore.

Management Commentary and Business Outlook

The company highlighted steady recovery in its base specialty chemicals business, with strong demand from non-agrochemical sectors such as pharmaceuticals and flavours and fragrances. Product optimisation and the upcoming replacement plant at Dahej are expected to support future growth.

In battery materials, Neogen aims to benefit from rising demand linked to electric vehicle and energy storage expansion. The company expects customer approvals and bulk shipments of lithium salts by the first half of FY27. The greenfield Pakhajan electrolyte plant is nearing completion and is expected to play a major role in long-term growth.

Key Developments During the Quarter

Fire Incident and Insurance Recovery

Neogen received ₹83.48 crore from insurance claims during the nine months ended December 2025, reducing the outstanding claim amount. The replacement plant construction is progressing and is expected to be commissioned in Q1 FY27.

Fundraising Plan

The board approved a proposal to raise up to ₹150 crore through a preferential equity issue to the promoter group, subject to regulatory approvals.

Battery Chemicals Expansion

The company is expanding capacity for lithium electrolyte salts and additives. Part of the new capacity has already been commissioned and shipments to customers have begun, while the remaining capacity is under trial production. Additional capacity is scheduled for commissioning by March 2026 and Q1 FY27.

At the Dahej facility, a 2,000-tonne electrolyte manufacturing plant has already been fully commissioned.

Indo-Japan Joint Venture and Pakhajan Project

Neogen Ionics formed a joint venture with Japan’s Morita Investment Limited to manufacture and sell solid LiPF6 salt globally. Neogen will hold an 80% stake, while Morita will invest $20 million for a 20% share. The partnership uses proven Japanese technology and supports supply chain diversification away from China.

Commercial production of electrolyte is expected in the first half of FY27, followed by electrolyte salt production in the second half. The company has secured long-term supply approval from a major Indian battery manufacturer and received provisional approvals from international customers, with final audits expected by Q1 FY27.

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About Neogen Chemicals

Founded in 1989, Neogen Chemicals is an Indian manufacturer of bromine-based and lithium-based speciality chemicals used across pharmaceuticals, agrochemicals, polymers, water treatment, electronics, construction chemicals, and electric vehicle battery materials.

Neogen Chemicals Share Price Movement

Neogen Chemicals share price (NSE: NEOGEN) closed at ₹1,295.00 on 11 February at 3:30 pm IST, down ₹19.60 or 1.49% for the day. The stock opened at ₹1,313.90, touched an intraday high of ₹1,357.50, and fell to a low of ₹1,289.60. Over the past 52 weeks, the stock has reached a high of ₹2,059.45 and a low of ₹966.70. It offers a dividend yield of around 0.077%, with a quarterly dividend amount of ₹0.249 per share.

Conclusion

Neogen Chemicals delivered steady revenue growth in Q3 FY26 despite temporary cost pressures and reconstruction expenses. With insurance recoveries, new capacity additions, and strong progress in battery materials, the company appears positioned for improved profitability and long-term growth in the coming years.

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