Neogen Chemicals Receives Additional Insurance Payment Following Fire Incident at Dahej Facility
Neogen Chemicals Limited has received an additional on-account payment of Rs. 15 Crore from its insurance provider following a fire incident that occurred at the company's Dahej SEZ facility in March 2025. The payment, received on July 16, 2026, pertains to the loss of property, plant, and equipment.The current payment follows recommendations provided by surveyors in an interim report. The company stated that further settlements will be determined in various stages upon completion of a comprehensive assessment regarding the loss of property, plant, and equipment, as well as other assets at the Dahej SEZ Plant. This evaluation also includes the loss of profit due to business interruption and the reinstatement value of assets.
With this latest payment included, the total on-account claim received by Neogen Chemicals Ltd to date stands at Rs. 155 Crore.
Impact Assessment and Financials
The company has recognized a total loss of Rs. 348.16 Crore (Rs. 362.90 Crore on a consolidated basis) resulting from damage to property, plant, equipment, inventory, and estimated incidental charges. The insurance claim receivable is currently assessed at Rs. 334.60 Crore (Rs. 348.82 Crore on a consolidated basis).The company has reported the following financial breakdown related to the incident:
| Description | Amount / Detail |
|---|---|
| Total Loss Recognized | Rs. 348.16 Crore (Rs. 362.90 Crore on consolidated basis) |
| Insurance Claim Receivable | Rs. 334.60 Crore (Rs. 348.82 Crore on consolidated basis) |
| Net Loss Considered in FY 2024-25 | Rs. 13.56 Crore (Rs. 14.08 Crore on consolidated basis) |
| Sale of Salvaged Scrap | Rs. 9.38 Crore |
| Additional Incidental Charges | Rs. 1.41 Crore |
Operational Updates and Recovery Measures
Operations at the Multi-Purpose Plant (MPP3) facility, including the warehouse and tank farms affected by the fire, remain temporarily suspended. However, Neogen Chemicals has initiated several measures to mitigate business disruption:The company is currently constructing a replacement plant, which is expected to be commissioned in the first half of fiscal year 2027 (H1FY27). To maintain production during this period, the company has shifted the manufacturing of critical select specialty products to other sites with customer approval. Furthermore, planned expansions at the Patancheru Plant are intended to help minimize the impact on future earnings and reduce business disruption.
NEOGEN Stock Price Movement
Neogen Chemicals Limited shares tumbled by 7.06% to settle at ₹2,157.5 today after a sharp sell-off in the post-market session. The stock shed ₹163.90 from its previous close amid a trading volume of 184,996 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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