Neogen Chemicals (NEOGEN) Q4 24/25 earnings summary

Executive summary

• Achieved 13% consolidated revenue growth in FY25, reaching ₹778 crore, and 24% EBITDA growth to ₹136 crore, despite a fire at the Dahej facility and weak global pricing.

• PAT for FY25 was ₹34.8 crore, down 2% due to an exceptional loss of ₹14 crore from the fire; profitability would have been higher excluding this charge.

• Demonstrated operational resilience by shifting production to other sites, beginning reconstruction at Dahej, and focusing on high-demand segments like semiconductors, flavors, fragrances, and pharma.

• Initiated strategic expansion in lithium and battery materials, including a JV with Morita Chemical Industries, capacity additions in lithium electrolyte salts and additives, and incorporation of a new subsidiary.

• Audited standalone and consolidated financial results for Q4 and FY25 approved, with unmodified audit opinions; final dividend of Re. 1 per share recommended.

Financial highlights

• FY25 consolidated revenue: ₹777.6 crore (up 13% YoY); standalone revenue: ₹773.7 crore (up 10%).

• FY25 consolidated EBITDA: ₹136.3 crore (+24%), margin at 17.5% (+160 bps YoY); standalone EBITDA: ₹105.51 crore.

• FY25 consolidated PAT: ₹34.8 crore, down 2% YoY due to exceptional items; standalone PAT: ₹48.41 crore.

• Q4 FY25 consolidated revenue: ₹202.8 crore; EBITDA: ₹36.4 crore; PAT: ₹2.4 crore, impacted by the fire.

• Standalone EPS for FY25: ₹18.35; consolidated EPS: ₹13.20.

Outlook and guidance

• FY26 revenue guidance revised to ₹750–850 crore due to the Dahej fire, with plant reconstruction targeted for Q4 FY26.

• Battery chemicals revenue for FY26 expected closer to ₹300 crore, with a target of over ₹1,000 crore in FY27, subject to market ramp-up and customer approvals.

• Greenfield battery materials facility using MUIS technology on track for commissioning by March 2026.

• Company continues to focus on specialty chemicals as a single operating segment, with expansion into lithium-ion battery materials.