Neogen Chemicals' Q2 FY26 revenue grows, strategic shifts progress

Neogen Chemicals reported an 8% year-on-year revenue growth, reaching INR 209 crore in Q2 FY26, driven by sustained demand and increased volume in its base and organolithium businesses. Gross profit improved by 16%, but elevated operating costs, including higher employee expenses, increased insurance premiums post-fire, and rising job work and conversion costs, impacted EBITDA and PAT. The company recorded a PAT of INR 3 crore for the quarter. Neogen Ionics contributed INR 5.42 crore to the quarter's revenue.

The company announced key corporate governance enhancements, including the separation of chairman and managing director roles effective October 1, 2025. Strategically, Neogen is progressing with its greenfield electrolyte facility at Pakhajan Dahej PCPIR, anticipating commercial production in the first half of FY27, with electrolyte salt in H2 FY27. They have also secured crucial PPAP approval from a leading Indian gigascale customer for long-term commercial electrolyte supply.

Neogen successfully executed a private placement of INR 200 crore NCDs to bolster financial flexibility for ongoing growth projects and rebuild the Dahej organic plant. Consolidated total debt stood at INR 1,078 crore, with net debt at INR 900 crore. The company projects FY27 revenue for Neogen Ionics to be between INR 400 crore to INR 500 crore, aiming for full utilization by FY29 with a target ROCE of 20%.