Neogen Chemicals

Neogen Chemicals has established a joint venture with Morita to manufacture LiPF₆, a key component used in lithium-ion batteries. The partnership, named Neogen Ionics, will be owned 80% by Neogen Chemicals and 20% by Morita. This venture positions the companies to participate in the lithium-ion battery supply chain through the production of this specialized chemical compound.

Neogen Chemicals Limited allotted 20,000 non-convertible debentures worth Rs 200 crore through private placement. The NCDs have a face value of Rs 1 lakh each and carry an interest rate of 10.50% per annum payable monthly. The debentures have a tenure of 30 months with maturity date of February 12, 2028. The issue was fully subscribed by 7 investors. The NCDs are secured by subservient charges on the company's present and future assets, including immovable properties in Vadodara and Bharuch, Gujarat. The debentures will be listed on BSE Limited's Wholesale Debt Market segment. Principal repayment will be made at maturity, while interest payments are scheduled monthly except for the last payment which will be clubbed with principal redemption.

Neogen Chemicals achieved revenue of INR 186.7 crore in Q1FY26, up 4% year-on-year, despite the Dahej plant remaining unavailable throughout the quarter due to a fire incident. The company maintained EBITDA at INR 31.5 crore with margins of 18.8% on standalone basis. Neogen Ionics contributed INR 5.4 crore in revenue. The company received INR 50.55 crore insurance claim in June and additional INR 30 crore in July, with net claim receivable of INR 268.27 crore remaining. Recovery efforts are progressing with the replacement plant's civil foundation work completed and equipment orders placed. Chairman Haridas Kanani will retire on September 30, 2025, and will become Chairman Emeritus from October 1. Anurag Surana has been designated as Chairman and Non-Executive Director. The company is advancing its battery chemicals expansion with INR 506 crore deployed out of total INR 1,500 crore CAPEX for the Pakhajan facility. A joint venture with Morita Chemical Industries is progressing for lithium salt production. The Board approved raising INR 200 crore through NCDs for additional liquidity during ongoing CAPEX projects.