Neogen Chemicals Limited (Neogen) reported a strong financial performance for the year ended 31st March, 2025. In FY25, Neogen’s revenues stood at Rs. 778 crore, higher by 13% Yo-Y. Robust volumes in the base business (including that of BuLi Chem’s) and incremental contribution from Neogen Ionics fueled Neogen’s revenue growth. This was despite the prices remained soft across product categories due to oversupply, sluggish global demand and unavailability of the Dahej plant for part of Q4 FY25 due to a fire incident.

Neogen Ionics’ FY25 revenue stood at Rs. 12 crore, which was also partly impacted due to a fire incident as it resulted in loss of finished goods.

EBITDA for FY25 for Neogen stood at Rs. 136 crore, higher by 24% Y-o-Y. Strong EBITDA growth stemmed from operating leverage achieved through higher volumes, further bolstered by cost optimization initiatives. EBITDA Margin for FY25 stood at 17.5% (15.9% in FY24).

Neogen’s profit after tax for FY25 stood at Rs. 35 crore. PAT would have been higher, but for the Exceptional Item of Rs. 14.08 crore on account of damage to certain property, plant & equipment, inventory and estimated cost of incidental charges due to fire incident at the Dahej plant.

Earnings per share (EPS) for FY25 stood at Rs. 13.20 per share (Rs. 13.96 per share in FY24)after including the impact of loss due to fire.

Commenting on the Q4 FY25 performance, Haridas Kanani, Chairman & Managing Director, Neogen Chemicals said: "We have closed FY25 on a strong note, achieving 13% revenue growth & 24% improvement in EBITDA. We accomplished this against a difficult & challenging global industry backdrop.

This led to weak pricing, despite some pockets of domestic demand resilience. In addition, our Dahej plant was not fully operational towards the end of Q4 due to the fire incident. Our solid performance was a result of our ability to swiftly adapt to a challenging environment by strategically pivoting towards product applications that had favorable demand.

Concerning the recent fire incident at our Dahej plant, I would like to reassure all our stakeholders that this is just a temporary setback. With our dedicated team and unwavering resolve, we are confident we will not only overcome the setback but emerge stronger and more efficient. In fact, we have already begun construction of another plant at an adjacent location at the same site which will replace the existing plant.

We are making strong progress on the Neogen Ionics' Lithium Salts and Electrolytes project. As several domestic battery manufacturers are set to commence production in FY26, boosting demand for battery materials, we are also on track to commission, by the end of FY26, our greenfield Battery Materials facility, using MUIS technology.

While FY25 was a challenging year, the road ahead looks promising. Neogen Chemicals is well poised to leverage its expertise across multiple chemistries to drive sustained growth going forward. In addition to actively focusing on higher-value specialty chemicals, significant contribution from upcoming lithium-ion battery materials segment will further diversify our revenue streams and accelerate our growth trajectory.”

Several domestic and international customers visited and approved the facility of Battery Materials. Neogen Ionics is now awaiting approval of commercial products manufactured from the site.