Neogen Chemicals Limited (NEOGEN) share price

₹2373.00 on NSE as of 2026-09-11. -0.67% on the day. market cap ₹6,498 Cr. P/E 178.6. 52-week range ₹979.80 to ₹2388.90. Chemicals.

Neogen Chemicals Q1 FY27: A ₹250 Crore Quarter Built While the Flagship Plant Was Still Under Reconstruction

At a glance

Neogen Chemicals reported consolidated revenue of ₹250 crore for the quarter ended June 2026, up 34% from ₹187 crore a year earlier. Operating profit came in at ₹48 crore against ₹32 crore, and PAT at ₹17.1 crore against ₹10.3 crore. EPS for the quarter was ₹6.29.

All of that arrived while the Dahej SEZ plant — damaged in a March 2025 fire — was still not producing. Management says reconstruction is complete with trial runs underway and commercial production to begin in Q2, and attributes the quarter's output to toll manufacturing arrangements and higher throughput elsewhere.

Two other things landed in the same fortnight. On 17 July 2026, Crisil downgraded the company's long-term rating to Crisil A-/Negative from Crisil A/Negative and the short-term rating to Crisil A2+ from Crisil A1, citing higher debt, higher finance costs, the fire, and delays in the battery-chemicals capex. Per the company's filing, the downgrade pushed the coupon on its ₹200 crore NCDs from 10.50% to 11.00% effective the same date. On 24 July, the board approved raising up to ₹600 crore, including by way of a QIP.

Consolidated borrowings stood at ₹1,395 crore as of March 2026, against ₹597 crore a year earlier. Finance cost in the quarter was ₹20.8 crore, up 64% year on year. Net worth as of March 2026 was ₹816 crore.

So the P&L accelerated, the balance sheet expanded, and the rating moved the other way — three things happening in the same three months. What's underneath them is where it gets interesting.

Introduction

Neogen was incorporated in 1989 and commenced operations in 1991 at Mahape, Navi Mumbai, making a handful of bromine and lithium compounds. Founder Dr. Haridas Kanani, a chemical engineer from IIT Bombay, had been working with bromine chemistry since the early 1970s — his first plant in Gujarat was destroyed by flooding after a dam collapse in Morbi, and he spent the years to 1984 consulting on other people's plants to recover the losses. He guided the company as Chairman and Managing Director from 1989 to 2025 and now holds the title of Chairman Emeritus, having crossed 80. Dr. Harin Kanani, who rejoined in 2008 after a doctorate at the University of Maryland, is Managing Director.

The company listed in May 2019 after a ₹132 crore IPO. Since then the growth has been bought as much as built: the Solaris ChemTech bromine derivatives plant at Vadodara in 2016 via slump sale, ₹225 crore raised through preferential allotment in December 2021, a licensing agreement with MU Ionic Solutions of Japan for electrolyte manufacturing technology, a 100% stake in BuLi Chem acquired from Livent for ₹19.35 crore in FY24, another ₹253 crore preferential allotment in November 2023, and 65 acres at Pakhajan in Dahej PCPIR for the battery materials project.

The recent stretch has been busier still. ₹200 crore of NCDs in H1 FY26. A joint venture between Neogen Ionics and Morita Investment Limited, forming Neogen Morita New Materials, incorporated July 2025, to make solid LiPF6 salt. A ₹161 crore promoter infusion in April 2026, via 10,00,000 shares at ₹1,610 each to Cadamba Solutions, a promoter group entity. And now the ₹600 crore in-principle approval — which management describes as "primarily" for debt reduction, "as a temporary measure."

For a company doing ₹862 crore of annual revenue, the funding calendar reads busier than the sales calendar.

Business model

Two buckets, and one of them has recently developed opinions about the future.

**Organic Chemicals** covers bromine compounds — organic molecules containing bromine, chlorine, fluorine, iodine and combinations thereof, plus grignard reagents — along with organolithium (N-Butyl Lithium and friends, made from highly reactive lithium metal), advanced intermediates, and custom synthesis where a product is built to a specific customer's requirement using in-house process know-how. End markets: pharmaceuticals, agrochemicals, flavours and fragrances, electronic chemicals, semiconductors.

**Inorganic Chemicals** is specialty lithium-based products, going into pharmaceuticals, battery chemicals, construction chemicals and specialty polymers. Also vapour absorption machines for cooling — which is why, per the company's own seasonality note, Q4 demand is strong: air-conditioning capex enjoys 100% depreciation benefits, so buyers wait for March like students wait for the last day of the deadline.

In Q1 FY27 the split was ₹194 crore organic (+18%) and ₹57 crore inorganic (+158%). Exports were 30% of the quarter, into 33+ countries, majorly the US, Europe, Japan, China, Korea and the Middle East.

The portfolio has gone from 20 products in 2001, when the first dedicated R&D unit was commissioned, to 258 now, supported by a 125-member R&D team including 9 PhDs. The clientele list runs Sun Pharma, Divi's, Aurobindo, Hetero, Viatris, Piramal, Hikal, Solvay, Thermax, Voltas, Kirloskar — a spread that means no single end-market failure takes the whole thing down, and also that the sales team has to speak fluent pharma, fluent HVAC and fluent agro before lunch.

Manufacturing sits at four sites: Mahape (69 m³ organic, 9 m³ inorganic, on 4,045 m² that is 100% utilised — there is nowhere left to put a reactor), Vadodara (111 m³, on 161,874 m² that is 20% utilised, which is the opposite problem), Patancheru near Hyderabad (300 MTA organic, the ex-BuLi plant, expanded from 120 MT active to 300 MT active), and Dahej, which had 258 m³ organic and 30 m³ inorganic before the fire and currently has none.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Neogen Chemicals Limited.

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