Neogen Chemicals Ltd(NEOGEN)

NSE: NEOGENBSE: 542665

₹ 2,176.25-2.70%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 6,538 crWebsite: www.neogenchem.comUpdated: 24 Oct 2026

About

Neogen Chemicals Ltd is an Indian specialty chemicals manufacturer producing organic and inorganic chemicals, with a growing battery chemicals vertical (Neogen Ionics) making lithium electrolyte and LiPF6 salt. Consolidated revenue was INR 861.96 crore in FY26, rising to INR 250 crore in Q1 FY27 (+34% YoY). The company operates plants at Dahej, Mahape, Karakhadi and a greenfield at Pakhajan, and is scaling into battery materials via a JV with Japan's Morita Investment Limited.^[1]

Business segments

Organic chemicals: INR 194 crore in Q1 FY27 (+18% YoY), the largest segment, covering custom synthesis, CDMO, advanced intermediates and organolithium reagents.^[2]
Inorganic chemicals: INR 57 crore in Q1 FY27 (+158% YoY), driven by organolithium by-product lithium recycling and strong base demand.^[2]
Battery chemicals (Neogen Ionics): INR 19 crore in Q1 FY27, up from INR 5 crore in Q1 FY26; full-year FY26 contribution was INR 36 crore, primarily from electrolyte salt merchant sales.^[2]
Exports made up 29% of consolidated revenue in FY26.^[3]

Operations and capacity

Organolithium plant at Patancheru: installed capacity 300 MT/year (expanded 2.5x from ~120 MT at acquisition); reached full utilisation for the first time in Q1 FY27.^[2]
Dahej organic chemicals plant: destroyed by fire and rebuilt as a replacement facility; trial runs underway as of Q1 FY27, with commercial restart targeted within Q2 FY27.^[2]
During the Dahej outage, production continued from the Mahape and Karakhadi sites; CDMO/advanced intermediates revenue for the first nine months was flat against the prior year (as of Q3 FY26).^[4]
Pakhajan greenfield: lithium electrolyte plant mechanical assembly complete and in trial runs; commercial electrolyte production targeted H1 FY27, electrolyte salt H2 FY27.^[2]
Dahej: additional 1,000 MT lithium electrolyte salt capacity and 500 MT intermediate capacity targeted by Q3 FY27.^[3]

Key operating numbers

Organolithium demand volume grew approximately 12x in the two to three years since the plant was acquired (as of Q1 FY27).^[2]
Custom synthesis and contract manufacturing reached approximately 16% of revenue in Q2 FY26, despite the Dahej fire.^[5]

Battery chemicals - Neogen Ionics

Neogen Ionics revenue of INR 19 crore in Q1 FY27 was more than 50% of its full-year FY26 revenue of INR 36 crore, mainly from merchant sales of electrolyte salt.^[2]
Provisional approvals secured from 4 international customers for lithium electrolyte salt as of Q1 FY27; final site audits completed with all 4 electrolyte manufacturers.^[2]
A prominent giga-scale Indian manufacturer gave long-term commercial supply approval for electrolyte after PPAP was completed (Q3 FY26); the company says this may be the only such plant approval in India.^[4]
FY27 plan: INR 200 crore from Dahej electrolyte salt (mainly H2, from non-FEOC 45X US demand) and INR 100 crore from electrolyte for domestic ACC PLI cell makers; Pakhajan electrolyte volume is treated as upside.^[2]
Management projects India's battery demand rising from 33 GWh in FY25 to 92 GWh by 2027 and over 200 GWh by 2032, with four of six gigafactories expected to start commercial production in FY27.^[2]

Morita JV

Neogen Morita New Materials Limited, a JV with Japan's Morita Investment Limited, was concluded in Q3 FY26. Neogen Ionics holds at least 80%; Morita holds at most 20% through a $20 million equity contribution.^[4]
The JV will make and sell LiPF6 salt globally using Morita's 30+ years of Japanese technology; it is described as the only non-FEOC compliant LiPF6 plant in India.^[4]
Morita's $20 million equity contribution is now expected in Q2-Q3 FY27, later than the original Q1 FY27 target.^[2]

Expansion and capex

Neogen Ionics gross block is targeted at INR 1,700-1,800 crore by end FY27 once the battery capex is complete; FY27 consolidated capex outflow is expected at about INR 800 crore.^[3]
An organolithium capacity addition by end FY27 is planned at less than INR 10-15 crore of capex; the decision will be taken after Q2 FY27, depending on demand visibility.^[2]
An extra 2,000 MT of salt capacity at Pakhajan and 500 MT of additives at Dahej can be added within 15 months of a decision; the decision is likely at end FY27 or early FY28, for readiness in FY29.^[2]
Peak revenue at full Neogen Ionics utilisation is guided at INR 2,400-2,900 crore by FY29, based on current capex covering ~30 GWh of electrolyte (domestic) and ~5-10 GWh salt equivalent (international).^[2]

Recent developments

September 2026: CRISIL revised its outlooks to Stable from Negative, rating Neogen Chemicals A-/Stable and Neogen Ionics BBB+/Stable.^[6]
September 2026: The CGST Commissioner issued a show cause cum demand notice for INR 6,97,08,028, including interest and penalty, over GSTR-1 vs GSTR-3B mismatches and excess ITC claims for FY 2022-23.^[7]
FY26 annual report: shareholders are asked to pass an enabling special resolution to raise up to Rs 600 crore through QIP/securities. Stated uses include growth, capex, working capital, debt repayment and investment in subsidiaries.^[8]
Q1 FY27: management said the QIP of up to INR 600 crore is mainly to cut debt, with an estimated annual finance cost saving of INR 40-50 crore if all of it goes to debt repayment.^[2]
Haridas Kanani stepped down as Chairman and MD on September 30, 2025 and was named Chairman Emeritus. Dr. Harin Kanani is MD, Anurag Surana is Non-Executive Chairman and TCN Sai Krishnan joined as Executive Director.^[8][5]
Q2 FY26: the promoter group's preferential allotment of INR 161 crore (10 lakh shares at INR 1,610 per share) was approved to fund the Neogen Ionics expansion.^[3]
Fire insurance: INR 164 crore received cumulatively as of Q1 FY27, with a net INR 186 crore still receivable.^[2]
FY25 annual report: bank loan facilities rated totalled ₹680 crore. The stock exchanges fined the company over an independent director continuing past age 75 (Regulation 17(1A)), and the fines were paid.^[9]

Revenue guidance

Standalone FY27 revenue guidance was raised to INR 950-1,050 crore from INR 875-950 crore, on organolithium at full utilisation and growth in the related inorganic lithium by-product (Q1 FY27).^[2]
Battery chemicals FY27 revenue guidance kept at INR 300 crore, mostly in H2 (Q1 FY27).^[2]
FY28 targets: base business standalone revenue of INR 1,100-1,200 crore; battery chemicals revenue expected above INR 1,000 crore (Q1 FY27).^[2]

Market Cap

₹6,538 Cr

High / Low

₹2,785 / 978

Stock P/E

188.3

Price / Book

8.1

Book Value

₹309

EPS

₹10.9

No. of Shares

2.64 Cr

ROCE

6.6%

ROE

3.6%

OPM

13.4%

Debt / Equity

1.63

Sales

₹862 Cr

Net Profit

₹29 Cr

Promoter holding

48.3%

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