Neogen Chemicals (NEOGEN) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 22% year-over-year to INR 201 crore, with EBITDA up 71% and PAT up 844% on a consolidated basis, driven by volume growth, BuLi Chem integration, and operational efficiencies.

• 9M FY25 consolidated revenue rose 17% year-over-year to INR 575 crore, with EBITDA up 35% and PAT up 73%, reflecting robust base business and new product launches.

• Successfully navigated depressed pricing and global headwinds through new product launches and export focus, with strategic diversification into semiconductors, flavors & fragrance, and custom synthesis.

• Export sales contributed 27% in FY24, with key geographies including the USA, Europe, China, Korea, and Japan.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Consolidated Q3 FY25 revenue: INR 201.43 crore (up 22% YoY); EBITDA: INR 34.6 crore (up 71% YoY); PAT: INR 10.01 crore (up 844% YoY).

• 9M FY25 consolidated revenue: INR 574.74 crore (up 17% YoY); EBITDA: INR 99.9 crore (up 35% YoY); PAT: INR 32.42 crore (up 73% YoY).

• Standalone Q3 FY25 revenue: INR 200.41 crore; net profit: INR 14.41 crore; EPS: INR 5.46.

• Standalone EBITDA margin improved to 18.8% in Q3 FY25; consolidated EBITDA margin at 17.2%.

• Revenue growth achieved despite lower raw material prices and weak pricing in several product categories.

Outlook and guidance

• FY26 standalone revenue guidance set at INR 950–1,000 crore; rapid scale-up in Neogen Ionics expected to drive consolidated growth beyond FY26.

• Battery chemicals revenue for FY25 expected at INR 20–30 crore due to delayed approvals, with FY26 guidance in the INR 300–500 crore range, depending on customer ramp-up and approvals.

• Peak revenue potential from battery materials expansion estimated at INR 2,500–2,950 crore, depending on lithium prices.

• Greenfield battery materials facility on track for commissioning in H2 FY26, with majority of erection and engineering works complete.

• TSM (contract manufacturing) business targeted to contribute 15–20% of revenue next year.