NCNeogen Chemicals542665Quarterly results

Q2 FY27 press release: revenue up 42%, EBITDA up 51%; Dahej claims received/receivable Rs. 316 crore

Q2 FY27 consolidated revenue INR 296 crore, up 42% YoY.

By ScoutQuest · Sun 1 Nov 2026, 11:28 PM IST · 2 min read

Q2 FY27 consolidated revenue

INR 296 crore, up 42% YoY

EBITDA

INR 45 crore, up 51% YoY

PAT

INR 8 crore

What the company reported

• Consolidated revenue of INR 296 crore for Q2 FY27, higher by 42% year on year
• EBITDA of INR 45 crore, higher by 51% year on year
• Profit after tax of INR 8 crore

The company said growth came from sustained volumes across its core segments and the ramp-up of its battery chemicals business, even as it carried costs linked to the Dahej plant rebuild, tolling arrangements and higher input costs. Profit after tax was impacted by higher interest and depreciation costs from ongoing capex; the company expects interest costs to ease as term debt is repaid using QIP proceeds and as borrowing costs fall after the credit rating action.

Fund raise and credit rating

• Raised INR 600 crore through its first-ever qualified institutions placement, which the company said was oversubscribed with participation from domestic and global institutional investors
• CRISIL revised the outlook on the company's long-term bank facilities and non-convertible debentures to 'CRISIL A-/Stable' from 'Negative', while reaffirming short-term ratings at 'CRISIL A2+'
• Proceeds are being deployed towards debt repayment, incremental business requirements and growth opportunities, per the release

Dahej fire — insurance recovery

• On October 29, 2026, the company accepted an additional claim amount from the insurance company, to be released as part-payment of the total receivable
• Total on-account claim received or receivable now stands at Rs. 316 crore, including insurance claims and salvage scrap sales
• Discussions with insurers for the remaining balance are described as progressing

Expansion and battery chemicals

• The board approved expansion of the Organolithium manufacturing facility at Patancheru, Telangana
• Total estimated project cost for Neogen Ionics' Dahej Phase 1 and Pakhajan Phase 2 battery materials projects is INR 1,795 crore, with Dahej Phase 1 targeted for February 2027 and Pakhajan Phase 2 by March 2027
• Lithium electrolyte salts capacity is being commissioned in phases, and the electrolyte plant at the Dahej facility is stated to be fully commissioned
• A Business Transfer Agreement between Neogen Ionics and step-down subsidiary Neogen Morita New Materials will consolidate the lithium-ion electrolyte salt undertaking
• The company said it has provisional approvals from international customers and is in active discussions with domestic and international cell manufacturers

What retail investors may take away

The release points to a quarter of strong growth in revenue and operating profit, a completed fund raise that the company says will be used to reduce debt, and an improved outlook from the credit rating agency. The insurance recovery adds cash, while the fire-related disruption and higher interest costs weighed on profit after tax. How quickly the battery chemicals business turns into earnings will depend on commissioning and customer approvals progressing as stated.

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