Neogen Chemicals Limited (NEOGEN) share price

₹2431.30 on NSE as of 2026-10-07. +0.09% on the day. market cap ₹6,414 Cr. P/E 182.9. 52-week range ₹979.80 to ₹2488.40. Chemicals.

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

At a glance

Neogen Chemicals makes bromine and lithium compounds for drugmakers, crop-chemical firms and battery producers. Consolidated revenue for the three months to June 2026 was ₹250 crore, up 34 per cent. Revenue in the same quarter a year earlier had been ₹187 crore. Operating profit rose to ₹48 crore from ₹32 crore a year before. Net profit was ₹17.1 crore for the quarter, against ₹10.3 crore. Earnings per share, the profit attributed to each share, came to ₹6.29.

All of that arrived while the Dahej special economic zone plant was still not producing. A fire damaged that plant in March 2025 and it has not produced since. Management says reconstruction is complete and that trial runs are now under way. It expects commercial production to start in the three months to September 2026. Management attributes the quarter's output to toll manufacturing and to higher throughput at the other sites. Toll manufacturing means paying another firm's factory to make the product for a fee.

Two further developments landed within the same fortnight as the quarterly numbers. On 17 July 2026, Crisil, a credit-rating agency, cut the long-term rating to Crisil A-/Negative from Crisil A/Negative. Crisil also cut the short-term rating to Crisil A2+ from Crisil A1. The agency cited higher debt, higher finance costs, the fire and delays in the battery-chemicals spending. Per the company's filing, the downgrade raised the coupon on its ₹200 crore debentures. The rate moved from 10.50 per cent to 11.00 per cent on the same date. On 24 July the board approved raising up to ₹600 crore, partly through a share sale to institutions.

Consolidated borrowings stood at ₹1,395 crore in March 2026, against ₹597 crore a year earlier. Finance cost in the quarter was ₹20.8 crore, a rise of 64 per cent. Net worth, the shareholders' own funds in the business, stood at ₹816 crore in March 2026.

Introduction

Neogen was incorporated in 1989 and began operations in 1991 at Mahape in Navi Mumbai. It started with a handful of bromine and lithium compounds and little else. Founder Dr Haridas Kanani is a chemical engineer from IIT Bombay who took up bromine chemistry in the early 1970s. His first plant in Gujarat was destroyed by flooding after a dam collapsed at Morbi. He spent the years to 1984 consulting on other people's plants to recover those losses. He guided the company as Chairman and Managing Director from 1989 until 2025. Having crossed 80, he now holds the title of Chairman Emeritus. Dr Harin Kanani rejoined in 2008 after a doctorate at the University of Maryland and is Managing Director.

The company listed in May 2019 after an initial public offering of ₹132 crore. The growth since has been bought about as much as it has been built. The Solaris ChemTech bromine derivatives plant at Vadodara came in 2016 through a slump sale, where an entire business unit transfers for a single price. A preferential allotment, meaning shares issued to selected buyers, raised ₹225 crore in December 2021. A licensing agreement with MU Ionic Solutions of Japan brought in electrolyte manufacturing technology. The company bought all of BuLi Chem from Livent for ₹19.35 crore in the year to March 2024. Another preferential allotment raised ₹253 crore in November 2023. It also holds 65 acres at Pakhajan, inside the Dahej petroleum and chemicals investment region, for the battery materials project.

The recent stretch has been busier still. The company issued ₹200 crore of non-convertible debentures in the six months to September 2025. Those are borrowings raised from the market that never turn into shares. Neogen Ionics and Morita Investment Limited formed a joint venture, Neogen Morita New Materials, incorporated in July 2025. It is to make solid lithium hexafluorophosphate, a salt used in battery electrolytes. In April 2026 a promoter group entity, Cadamba Solutions, put in ₹161 crore through ten lakh fresh shares. Then came the in-principle approval for ₹600 crore, which management describes as "primarily" for debt reduction, "as a temporary measure". Annual revenue is ₹862 crore.

Business model

The company reports in two segments, and the older one still carries most of the sales.

Organic Chemicals covers bromine compounds, meaning organic molecules containing bromine, chlorine, fluorine or iodine. It also covers grignard reagents, a class of compounds chemists use to build larger molecules. Organolithium products sit here too, including N-Butyl Lithium, made from highly reactive lithium metal. So do advanced intermediates and custom synthesis, where a product is built to one customer's requirement using in-house process know-how. The end markets are pharmaceuticals, agrochemicals, and flavours and fragrances. Electronic chemicals and semiconductors take the rest.

Inorganic Chemicals is specialty lithium-based products, sold into pharmaceuticals, battery chemicals, construction chemicals and specialty polymers. The segment also holds vapour absorption machines, a type of cooling equipment. Per the company's own seasonality note, demand in the three months to March is strong, because air-conditioning spending carries a 100 per cent depreciation benefit. Buyers therefore wait for March rather as students wait for the last day before a deadline.

In the three months to June 2026 the organic side brought ₹194 crore, up 18 per cent. The inorganic side brought ₹57 crore, up 158 per cent. Exports were 30 per cent of the quarter and went to more than 33 countries. The main destinations are the United States, Europe, Japan and China, with Korea and the Middle East behind them. The portfolio has gone from 20 products in 2001, when the first dedicated research unit was commissioned, to 258 today. A research team of 125 people, including nine PhDs, supports it. Customers include Sun Pharma, Divi's, Aurobindo and Hetero. Viatris, Piramal and Hikal also buy, as do Solvay, Thermax, Voltas and Kirloskar. A sales team covering that spread has to speak fluent pharma, fluent air-conditioning and fluent agro before lunch.

Manufacturing sits at four sites. Mahape holds 69 cubic metres of organic and 9 cubic metres of inorganic capacity. Its 4,045 square metre plot is fully used, so there is nowhere left to put another reactor. Vadodara holds 111 cubic metres on 161,874 square metres, of which a fifth is used. Patancheru near Hyderabad makes 300 tonnes a year of organic products, the former BuLi plant expanded from 120 tonnes of active capacity. Dahej held 258 cubic metres of organic and 30 cubic metres of inorganic capacity before the fire, and holds none now.

Neogen Ionics, a wholly owned subsidiary, builds electrolytes and lithium electrolyte salts. A three-decade lithium importer is putting a battery-materials business next to a bromine business. The subsidiary has 2,000 tonnes of electrolyte capacity at Dahej. Planned at Pakhajan are 30,000 tonnes of electrolyte and 3,000 tonnes of salts.

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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