Neogen Chemicals (NEOGEN) Q2 24/25 earnings summary

Executive summary

• Achieved 20% year-on-year consolidated revenue growth to INR 193.4 crore in Q2 FY25, with PAT up 38% to INR 11 crore, driven by volume gains in core business, BuLi Chemicals, and Neogen Ionics.

• EBITDA increased 33% year-on-year to INR 35 crore, with margins improving to 17.9% despite weak demand and pricing pressures.

• Battery Chemicals (Neogen Ionics) commenced initial commercial sales of lithium salts and electrolytes, with strong customer response and ongoing expansion projects.

• Expansion activities include commissioning of new lithium electrolyte salt capacity, ongoing construction of a greenfield battery material facility with Mitsubishi, and incorporation of a Japan subsidiary.

• Profit after tax rose 30–38% year-on-year to INR 11 crore, reflecting strong operational execution.

Financial highlights

• Q2 FY25 consolidated revenue grew 20% year-on-year to INR 193.4 crore; standalone revenue up 4% to INR 174.5 crore.

• Organic chemical revenue up 34% year-on-year to INR 164 crore; inorganic chemical revenue down 24% to INR 29 crore due to lower lithium prices.

• EBITDA rose 33% to INR 35 crore; EBITDA margin at 17.9%.

• PAT grew 38% to INR 11 crore; EPS up 31% to INR 4.15.

• Domestic/export revenue mix: 74%/26% for the quarter; organic chemicals contributed 85% and inorganic 15% to Q2 revenue.

Outlook and guidance

• FY25 battery chemical revenue expected in the INR 50–75 crore range, lower than initial guidance due to slower approvals.

• FY26 battery chemical revenue expected at INR 400–500 crore, with base business guidance of INR 950–1,000 crore including BuLi.

• FY27 base business revenue target of INR 1,150–1,200 crore; battery segment expected to exceed INR 1,000 crore.

• CSM business targeted to reach 20% of base business by FY26.

• Strategic focus on expanding organic/inorganic capacities, advanced intermediates, and battery materials.