Neogen Chemicals Reports Robust Q1 FY27 Results; Revenue Up 34% YoY as Battery Materials Push Gains

Neogen Chemicals Reports Robust Q1 FY27 Results; Revenue Up 34% YoY as Battery Materials Push Gains​

Neogen Chemicals Limited reported a strong financial performance for the first quarter of fiscal year 2027 (Q1 FY27) ended June 30, 2026. The company posted consolidated revenue of INR 250 crore, marking a 34% increase year-on-year. Profit after tax (PAT) reached INR 17 crore, reflecting a substantial rise of 67% compared to the previous year period.

The robust performance was achieved despite navigating global headwinds and managing the temporary shutdown of the Dahej plant, bolstered by efficient operations across its toll manufacturing sites. The expansion in product lines drove revenue growth, with the Organolithium Portfolio delivering significant gains due to enhanced plant throughput.

Financial Highlights for Q1 FY27 (Consolidated)​

The company's operational efficiency was reflected in a 53% year-on-year increase in EBITDA, reaching INR 48 crore. Management initiated cost pass-throughs related to raw materials and input costs (including freight, packaging, and utilities) to maintain operating margins, aided by a favorable product mix.

The company achieved its highest quarterly revenues ever recorded in both the Organolithium and Battery Chemicals segments, alongside strong volume growth in Inorganic Chemicals. However, PAT was partially moderated by increased finance costs, which rose 64% year-on-year, attributed to higher debt drawdown used for ongoing Capital Expenditure (CAPEX), coupled with working capital intensity driven by supply chain inflation and insurance receipt delays.

Consolidated Earnings Per Share (EPS) for Q1 FY27 stood at INR 6.29 per share (not annualized).

Performance metrics are summarized below:

Operational and Strategic Updates​

Neogen Chemicals reported that the Organolithium portfolio delivered robust gains, while Neogen Ionics showed a stellar start. The subsidiary recorded Q1 FY27 revenue of INR 19 crore against INR 5 crore in Q1 FY26.

Dr. Harin Kanani, Managing Director at Neogen Chemicals, stated that the performance reflects sound underlying business fundamentals despite global supply chain pressures and facility transition activities at Dahej. He highlighted that battery materials project remains on track, backed by successful customer validations and client approvals.

Regarding strategy, Dr. Kanani noted that Neogen Ionics is well-positioned as a preferred partner for domestic and global cell manufacturers. The company plans to accelerate supply chain localization through the advanced battery chemistry components, supporting India's mission toward a self-reliant ecosystem for EV and energy storage applications while servicing non-FEOC global demand.

Key Project and Incident Updates​

Dahej Fire Incident:
The cumulative recoveries stand at INR 164 crore as of June 30, 2026. This includes INR 155 crore in on-account insurance claims (which included a recent tranche of INR 15 crore in July 2026) and INR 9 crore from salvage realization. Further incidental charges totaling INR 1 crore have been incurred and are also claimed under the policy. The net claim receivable stands at INR 186 crore consolidatedly. Crucially, reconstruction of the Dahej plant is complete, with trial runs underway, and commercial production is expected soon.

Expansion Initiatives:
The company has several expansion projects underway in its battery chemicals division:

Battery Materials Project Execution Roadmap​

Neogen Ionics' Dahej Phase 1 and Pakhajan Phase 2 projects have an estimated total cost of INR 1,795 crore (INR 218 crore incurred in Q1 FY27; cumulative INR 1,298 crore to date).

The project details are as follows:

• Dahej Phase 1: Cost is INR 428 crore, targeted for completion by February 2027.
• Pakhajan Phase 2: Budgeted at INR 1,367 crore, expected to complete by March 2027.

Both projects reflect design optimizations using advanced Japanese technology and enhanced localization of critical subcomponents to improve operational reliability. Project completion timelines remain on schedule for Electrolytes (H1 FY27) and Electrolyte Salts (H2 FY27). Strong engagement is ongoing with domestic and global cell manufacturers regarding electrolyte salt supplies.

Board Approval for Fund Raise​

The Board has approved raising up to INR 600 Crore (in INR or foreign currency) through the issue of eligible securities via a Qualified Institutional Placement (QIP), subject to requisite statutory and shareholder approval.

NEOGEN Stock Price Movement​

Shares of Neogen Chemicals Limited on Friday slipped by 1.53%, settling at ₹2062.8 after closing down ₹32.00 from the previous close. The stock traded a volume of 54,018 shares during the session.