For the September quarter, Neogen Chemicals delivered exceptional financial results with consolidated net profit rising 144% year-on-year to ₹8.2 crore and revenue from operations increasing 42% YoY to ₹296 crore. The specialty chemical manufacturer's standalone performance was equally impressive, with standalone net profit growing 127% YoY to ₹21.1 crore and revenue from operations rising 39% YoY to ₹288 crore. According to the latest results, consolidated EBITDA stood at ₹45.3 crore, higher by 51% YoY, while standalone operating margin expanded to 18.65% in Q2FY27 from 16.91% in Q2FY25. The company's consolidated earnings per share (EPS) for Q2FY27 stood at ₹2.96 per share, reflecting robust operational efficiency despite higher costs related to Dahej plant rebuild and tolling arrangements. The net profit margin widened to 7.34% from 4.50% in the corresponding quarter last year, demonstrating improved profitability across all metrics.
Driven by expanding production capacity and seasonal momentum, Neogen Chemicals Ltd. has raised its revenue outlook for the standalone legacy business. The specialty chemical producer now targets ₹1,100+ crore in FY27 revenue, up from its earlier guidance of ₹950 crore – ₹1,050 crore. According to reports from CNBC TV18, this upward revision comes as new capacity at its Dahej facility comes online and a historically stronger second half of the fiscal year approaches. The company's consolidated revenue growth of 42% YoY to ₹296 crore reflects robust demand across its product segments and accelerated scale-up in battery chemicals. The operating margin expansion to 18.65% from 16.91% in Q2FY25 demonstrates the company's ability to improve operational leverage despite challenging market conditions.
The company's battery chemicals subsidiary Neogen Ionics Limited (NIL) demonstrated remarkable growth with Q2FY27 revenue surging to ₹37 crore from ₹5.4 crore in the corresponding quarter last year. As reported in the latest results, this significant revenue scale-up highlights the accelerated growth trajectory of the battery chemicals vertical. However, the consolidated profit before tax stood at ₹12.72 crore in Q2FY27, significantly lower than the standalone figure of ₹28.43 crore, indicating that subsidiaries are currently incurring losses or higher costs that dilute the parent company's profitability. The board's decision to provide substantial corporate guarantees and loans to these entities reflects a continued strategic focus on nurturing these high-growth but currently loss-making verticals.
To support its medium-term growth strategy, Neogen announced a major brownfield expansion at its Patancheru unit in Telangana. The company will double its manufacturing capacity for Organo-Lithium chemicals from 300 MTPA to 600 MTPA of active material. As reported by CNBC TV18, the proposed capital expenditure of ₹45 crore will be funded through a mix of internal accruals and debt. The Organo-Lithium expansion is expected to be completed by 1HFY28, contributing approximately ₹50 crore – ₹75 crore in revenue during FY28. The company provided updates on key operational projects during its recent analyst conference call, indicating continued focus on capacity expansion to meet growing demand.
The company's financial position has strengthened significantly following recent capital raises. Total equity increased to ₹1,630.13 crore as of September 30, 2026, from ₹853.80 crore in March 2026, primarily due to the Qualified Institutions Placement (QIP) completed in September 2026, which raised gross proceeds of ₹600 crore and was oversubscribed 6.5x. Cash and cash equivalents also saw a substantial rise to ₹353.97 crore, providing ample liquidity for approved debt redemption and capex plans. CRISIL Ratings revised the rating outlook on Neogen Chemicals Limited's long-term bank facilities and Non-Convertible Debentures to 'CRISIL A-/Stable' from 'Negative', while reaffirming short-term ratings at 'CRISIL A2+'. Interest expenses are expected to decline moving ahead, supported by term debt reduction using QIP proceeds and lower borrowing costs following the credit rating upgrade.
