Neogen Chemicals (NEOGEN) Q2 25/26 earnings summary

Executive summary

• Q2 FY 2026 saw 8% revenue growth and 16% gross profit improvement, despite operational disruptions from a Dahej plant outage, which was mitigated by shifting production and outsourcing, incurring temporary costs.

• Strategic milestones included the formation of an Indo-Japan JV for battery materials, key customer approvals for electrolyte and salt, and enhanced corporate governance with board role separation.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with limited review by statutory auditors and no material misstatements identified.

• Amalgamation of Buli Chemicals India Private Limited completed, with retrospective restatement of prior periods.

Financial highlights

• Q2 FY 2026 consolidated revenue was INR 209 crore, up 8% year-over-year; organic revenue grew 12% to INR 184 crore, inorganic revenue was INR 24 crore.

• Neogen Ionics contributed INR 5.42 crore to revenue; EBITDA was INR 30 crore, with margin pressure from higher employee costs, insurance premiums, and outsourcing.

• PAT for Q2 FY 2026 was INR 3 crore, impacted by increased operational and finance costs, and lower Dahej plant utilization.

• Standalone revenue for Q2 FY26 was INR 206.7 crore; standalone PAT was INR 9.3 crore.

• Standalone EBITDA margin for H1 FY26: 17%; consolidated EBITDA margin for H1 FY26: 14%.

Outlook and guidance

• Battery Chemicals revenue guidance for FY 2026 revised down to INR 30–40 crore due to delayed customer ramp-up; FY 2027 guidance is INR 400–500 crore, with full utilization targeted by FY 2029 (INR 2,400–2,900 crore).

• Base business revenue on track for INR 850 crore in FY 2026 and INR 950–1,000 crore in FY 2027, with double-digit growth targeted for FY 2028 without major CapEx.

• Margin guidance for standalone business is 18% ±1–1.5% at full utilization; Neogen Ionics targets 20% ROC, with EBITDA margin for battery business expected at 16–20% depending on lithium prices.

• Significant ramp-up in battery materials expected next year as new projects commission and Dahej plant rebuild completes.