Neogen Chemicals has reported a strong financial performance for the second quarter of FY27, with consolidated revenue jumping 42% year-on-year (YoY) to Rs 296 crore for the quarter ended September 30, 2026.
This, driven by sustained volume growth across core businesses and an accelerating contribution from its battery chemicals operations.
The company's consolidated EBITDA rose 51% YoY to Rs 45 crore, while profit after tax (PAT) surged 144% to Rs 8 crore, reflecting improved operating performance despite geopolitical tensions in the Middle East, supply chain disruptions and rising feedstock costs.
A key growth driver was the rapid scale-up of Neogen Ionics Ltd (NIL), the company's battery chemicals subsidiary. NIL's revenue soared to Rs 37 crore in Q2 FY27, compared with Rs 5.4 crore in the corresponding quarter last year, underscoring the growing contribution of the battery chemicals business.
The company's performance was supported by sustained volume growth in its core segments, with its Organolithium business expanding into high-growth emerging applications.
Neogen, however, continued to face cost pressures arising from the Dahej plant rebuild, tolling arrangements, capital expenditure at NIL and elevated input costs.
The company said consolidated EBITDA also reflected the initial fixed-cost burden at NIL, as revenue scale-up and capacity utilisation continue to gather momentum. The ongoing ramp-up is expected to create a foundation for improved operating leverage in the coming quarters.
Gross profit for the quarter stood at Rs 133 crore, registering 36% growth over the year-ago period.
PAT, meanwhile, was impacted by higher interest and depreciation expenses linked to ongoing capital expenditure programmes. Neogen expects interest costs to ease going forward, supported by the reduction of term debt using proceeds from its qualified institutional placement (QIP) and lower borrowing costs following an upgrade in its credit rating.
Consolidated earnings per share (EPS) for Q2 FY27 stood at Rs 2.96, not annualised.
The results point to growing momentum in Neogen's battery chemicals business, even as the company navigates elevated costs and capacity ramp-up challenges. The coming quarters will be crucial in determining how quickly the expansion at Neogen Ionics translates into stronger capacity utilisation, operating leverage and sustained profitability.
