Neogen Chemicals Reports 69% Fall in Q2 Profit Despite 8% Revenue Growth; Stock Price Down Nearly 9%

Mumbai, November 10, 2025 – The share price of Neogen Chemicals Ltd. declined 8.88% by midday Monday, despite the company reporting a resilient 8% revenue growth for the quarter ended September 30, 2025. The results highlighted a steep 69% fall in net profit, reflecting higher operational and financial costs during the period.

Consolidated & Standalone Financial Performance

Neogen Chemicals reported consolidated revenue of ₹209 crore for Q2 FY26, up 8% YoY, with gross profit rising 16% to ₹97 crore. EBITDA stood at ₹30 crore, down 13%, while net profit fell sharply by 69% to ₹3 crore. On a standalone basis, revenue reached ₹207 crore, up 7% YoY. Gross profit rose 15% to ₹95 crore, EBITDA declined 4%, and PAT dropped 37% during the quarter.

What Does the Management Say?

Managing Director of Neogen Chemicals, Dr. Harini Kanani said that Neogen’s diversified business model enabled it to maintain its growth momentum despite all the operational challenges. She further added that to facilitate the domestic manufacturers, the commercial-grade electrolyte supply has begun. As new projects are streamlined and come online, the company is expecting a significant ramp-up in the coming year.

Expansion and Strategic Initiatives

• Lithium Electrolyte Salts & Additives: Neogen has set up a 400 MTPA capacity plant, out of which 200 MTPA has already been commissioned. The remaining capacity is under trial. This particular project is expected to reach its full capacity by FY27.
• Electrolyte Manufacturing at Dahej: It has a fully operational capacity of 2000 MT electrolyte manufacturing plant at Dahej.
• Neogen Ionics Greenfield Project (Pakhajan, Dahej PCPIR): In alignment with India’s advanced chemistry cell rollout, the company has planned to start electrolyte production in the first half of FY27. Lithium salt production is planned in the second half of FY27.
• Neogen–Morita Joint Venture: The company marked India’s first Indo-Japanese JV. The JV is made on the basis of producing Solid LiPF6 electrolyte salt. In this JV, Neogen holds an 89% stake, Japan’s Morita Corporation holds a 20% stake.

Share Price Update

Neogen Chemicals shares have dipped 33% in the last year, 40% in the year-to-date, 14% in the last six months, and 9.54% in the previous 5 days. The scrip opened at ₹1,400, hit an intraday high at the same value, and a low of ₹1,307. Currently, the company’s market capitalization stands at ₹3,490 crore.

Neogen Chemicals Limited is one of India’s leading manufacturers of bromine-based and lithium-based specialty chemicals. The company caters to pharmaceuticals, agrochemicals, electronics, and advanced materials sectors. Neogen has four manufacturing facilities. They are located across Maharashtra, Gujarat, and Telangana.

REF: https://nsearchives.nseindia.com/corporate/NEOGEN_09112025135534_PR.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations