Neogen Chemicals has delivered a strong start to FY27, reporting robust growth in revenue and profitability despite a temporary shutdown at its Dahej plant following last year's fire incident.
The specialty chemicals manufacturer posted consolidated revenue of Rs. 250 crore for the quarter ended June 30, 2026, up 34% year-on-year, driven by higher volumes across key product lines, record performance in its Organolithium portfolio and rapid growth at Neogen Ionics.
Consolidated profit after tax (PAT) climbed 67% year-on-year to Rs. 17 crore, while EBITDA rose 53% to Rs. 48 crore, reflecting resilient operating performance despite elevated raw material costs, higher freight and utility expenses, and transition-related costs linked to the Dahej plant reconstruction.
The company said revenue growth was achieved despite the temporary shutdown of the Dahej facility through efficient management of toll manufacturing operations. Higher plant throughput in the Organolithium business and strong volume growth in Inorganic Chemicals further supported performance.
Neogen Ionics continued its rapid scale-up, reporting quarterly revenue of Rs. 19 crore, compared with Rs. 5 crore in the corresponding quarter last year.
Gross profit increased 37% year-on-year to Rs. 117 crore, while consolidated earnings per share (EPS) stood at Rs. 6.29 for the quarter, on a non-annualised basis.
Although operating performance remained strong, the company said higher finance costs, which rose 64% year-on-year, moderated profit growth. The increase was primarily due to higher borrowings for ongoing capital expenditure, greater working capital requirements amid geopolitical supply chain inflation, and delays in insurance claim receipts.
Neogen said reconstruction of its Dahej manufacturing facility has been completed, with trial runs currently underway. Commercial production is expected to commence shortly.
The company has recovered Rs. 164 crore related to the Dahej fire incident so far, including Rs. 155 crore in insurance claims and Rs. 9 crore from salvage realisation. It has also incurred additional incidental charges of Rs. 1 crore, which have been submitted under the insurance policy. As of June 30, 2026, the net claim receivable stood at Rs. 186 crore on a consolidated basis.
The Board has approved raising up to Rs. 600 crore through the issuance of eligible securities, including via a Qualified Institutional Placement (QIP), subject to shareholder and statutory approvals.
Harin Kanani, Managing Director, Neogen Chemicals said: "We have delivered robust performance in Q1 FY27, marking a strong start to the new financial year. This performance was driven by volume gains across our core business lines led by sustained customer off-take and the highest revenue ever recorded in our Organolithium portfolio, alongside a stellar start at Neogen Ionics, which generated over 50% of its entire prior-year revenue in Q1 FY27 alone.
"Despite global supply chain pressures, elevated inputs costs and plant transition activities at Dahej, our underlying business fundamentals remain sound. As our replacement Dahej plant scales up, we are well-positioned to leverage our expanded capacities and drive sustainable growth."
He added: "Our battery materials project remains firmly on track with projected timelines. Backed by successful customer validations, international site audits, and key client approvals, Neogen Ionics stands at a pivotal junction, uniquely positioned as a preferred partner for domestic and global cell manufacturers.
"This position is further strengthened by favorable Government support and policy actions, alongside production ramp-up by PLI ACC battery manufacturers and the allocation of the 10 GWh re-bidding tranche.
"More importantly, the Government’s intention to incentivize battery component manufacturers through a proposed PLI scheme will accelerate supply chain localization. Through the localization of advanced battery chemistry, we will actively support India’s mission to build a self-reliant domestic ecosystem for EV and energy storage applications, while servicing global non-FEOC demand."
Moving forward, he said, FY27 will be a defining year of execution for Neogen Chemicals, "as we commission and scale up our battery materials project to emerge as a critical player in the battery chemicals ecosystem."
"Concurrently, with our replacement Dahej facility nearing operational readiness, our core base business is set to resume its normalized growth trajectory this year. Reaffirming our previously shared guidance, we remain focused on executing our strategic CAPEX roadmap and unlocking operating leverage to deliver sustainable, long-term growth and value creation for shareholders.”
