Neogen Chemicals Ltd, incorporated in 1991, manufactures bromine and lithium-based organic and organo-metallic compounds, used in the pharmaceutical, agricultural chemicals, and engineering industries.
Q2 FY26 Earnings Results
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Revenue from Operations: ₹209 crore, up 8% YoY from ₹194.91 crore in Q2 FY25
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EBITDA: ₹30 crore, down from previous quarters due to increased employee costs and insurance premiums
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Profit After Tax (PAT): ₹3.37 crore, down 69% YoY from ₹10.9 crore in Q2 FY25 due to higher interest costs and expenses related to the Dahej plant fire incident
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EBITDA margin shrank to 14.36% from 17.85% YoY
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Interest coverage ratio declined to 1.54x from 2.77x in Q2 FY24, suggesting increased financial leverage stress
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Neogen Ionics (battery chemicals) contributed ₹5.42 crore in revenue
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Despite operational challenges, the company reported highest-ever quarterly revenue driven by volume growth
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Capital intensive expansion and fire-related costs impacted short-term profitability
Management Commentary & Strategic Insights
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Dr. Harin Kanani, Managing Director, stated that the company showed operational resilience despite Dahej plant outage
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Diversified business model helped offset challenges from the plant fire
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Focus remains on completing plant rebuild, optimizing costs, and ramping up capacity
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Ongoing investments in high-margin organolithium and specialty chemicals to drive medium- to long-term growth
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Strategic initiatives include expanding battery chemicals segment and exploring new markets
Q1 FY26 Earnings Results
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Revenue: ₹186.7 crore, up 4% YoY despite Dahej plant disruption
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EBITDA: ₹31.5 crore, stable YoY with margins of 18.8%
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PAT: ₹10.3 crore, steady YoY
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Operational resilience maintained with stable profitability despite supply constraints.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.