Neochem Bio Solutions Limited reported a 32% year-on-year increase in revenue from operations to INR110.7 crore for the financial year ended March 31, 2026. Profit after tax surged 62% to INR12 crore, driven by a favorable product mix, higher capacity utilization, and operating leverage benefits. EBITDA for the year increased by 53% to INR22.6 crore, with margins expanding by 321 basis points to 20.4%.

The company’s strategic shift towards its own brand business, which now constitutes over 80% of operations compared to 75% white-label business in FY22, underpinned the profitability improvement. Total income for FY26 stood at INR113.4 crore, reflecting a 32% growth. The board attributed the strong performance to deepened customer relationships and an expanded specialty product portfolio.

Operational Performance

Neochem’s integrated manufacturing facility at Moraiya, Ahmedabad, operates with an installed capacity of 22,000 metric tons per annum. Capacity utilization improved steadily from approximately 35% in FY24 to 53% in FY26. The company noted that nearly 47% capacity headroom remains available within the existing facility, providing embedded growth potential without requiring major manufacturing capex in the near term.

Financial Highlights

The second half of the fiscal year contributed significantly, with H2 FY26 revenue from operations standing at INR64.9 crore, a 37% increase year-on-year. EBITDA for H2 was INR12.6 crores, translating to a margin of 19.4%, while PAT for the period was INR6.9 crores.

Strategic Developments

The Home and Personal Care (HPC) segment grew to contribute 14% of revenue in FY26, up from 2% in FY24. The company also commercialized its partnership with Lamoral Coatings from the Netherlands, focusing on bio-based fluorine-free water and stain repellent technology. Exports accounted for approximately 5% of revenue in FY26, with a presence across 12 countries including Bangladesh, Vietnam, and Canada.

Balance Sheet Strength

FY26 witnessed a substantial strengthening of the balance sheet, with long-term borrowings reduced to INR0.7 crore from INR14.3 crore in FY25. The debt-to-equity ratio improved significantly from 1.8 in FY25 to 0.2 in FY26. Short-term borrowings stood at INR17.1 crore, primarily comprising working capital facilities.

Neochem Bio Solutions Limited has announced its audited financial results for the financial year ended March 31, 2026. The company reported a significant improvement in profitability, with Profit After Tax (PAT) rising by 62% to ₹1,203 lakh compared to the previous year. Revenue from operations increased by 32% to ₹11,069 lakh, driven by strong operational performance. Following the announcement, the company has scheduled an earnings conference call to discuss these results.

Financial Performance

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 48% to ₹2,193 lakh for FY26. The basic Earnings Per Share (EPS) stood at ₹8.71 for the year, calculated on the weighted average of outstanding shares following the company's Initial Public Offering (IPO) in December 2025.

*The company completed its IPO in December 2025. The EPS reported is calculated on the weighted average of outstanding shares for the relevant period.

Board Approval and Audit

The Board of Directors approved the audited standalone financial results at its meeting held on May 18, 2026. M/s. Patel Mehta & Associates, Chartered Accountants, issued an audit report with an unmodified opinion on the financial statements. The auditors noted an emphasis of matter regarding a subsidy receivable of ₹485.40 lakhs, which remains unrealized and is dependent upon government approval.

Balance Sheet Highlights

The company's total equity and liabilities stood at ₹11,711.52 lakh as of March 31, 2026, up from ₹7,889.13 lakh in the previous year. Shareholders' funds increased significantly to ₹7,884.47 lakh, primarily due to the IPO proceeds. Total assets also rose to ₹11,711.52 lakh, with non-current assets at ₹3,119.72 lakh and current assets at ₹8,591.80 lakh.

Earnings Conference Call

Neochem Bio Solutions Limited has scheduled a conference call for analysts and investors on Friday, May 22, 2026, at 2:00 PM IST. The call will discuss the audited financial results for the half year and year ended March 31, 2026. Management participants include Mr. Swapnil Makati, Managing Director; Mr. Pradip Solanki, Chief Financial Officer; and Mr. Shamik Nagar, Associate Director, Business Operations. The presentation and audio recording will be available on the company's website.