Neogen Chemicals (NEOGEN) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 marked steady revenue growth and strategic recovery, with robust demand in pharma, flavors, fragrance, and specialty applications despite operational challenges from the Dahej fire.

• Battery chemicals segment entered a transformative phase, with a strategic Indo-Japan JV for LiPF6 salt production and capacity expansions positioning the company for future growth.

• Approved unaudited standalone and consolidated financial results for Q3 and 9M FY26, with statutory auditor review and audit committee recommendation.

• In-principle approval granted for raising up to INR 150 crore via preferential equity issue, primarily to the promoter group, subject to regulatory approvals.

• Granted 50,200 stock options to 55 eligible employees under the ESOP Scheme 2024.

Financial highlights

• Consolidated Q3 FY26 revenue rose 9% year-over-year to INR 220 crore; 9M FY26 revenue up 7% to INR 615 crore.

• Q3 FY26 consolidated EBITDA at INR 31.9 crore, with margin contraction to 14.5%; PAT for the quarter was INR 3.69 crore, impacted by higher costs and interest expenses.

• Standalone Q3 FY26 revenue was INR 215.6 crore; PAT was INR 8.77 crore.

• Organic segment revenue was INR 187 crore (86% YoY growth); inorganic segment at INR 33 crore (35% YoY growth).

• Neogen Ionics contributed INR 12 crore to revenue as battery chemicals vertical scales up.

Outlook and guidance

• Guidance for INR 400-500 crore battery chemical revenue in FY27 remains unchanged, with major contributions expected from Dahej and Pakhajan sites.

• Dahej plant commissioning is on track for Q1 FY27; Pakhajan greenfield project to start commercial production in H1 FY27 (electrolyte) and H2 FY27 (salts).

• Full customer qualification for Dahej expected by June, with sales ramping up from Q2 FY27.

• Board approved fund-raising to support growth and expansion.

• Double-digit revenue growth expected in base business for FY27 and FY28 as Dahej resumes full operations.