Neogen Chemicals Limited , a leading specialty chemicals manufacturer, has reported an 8% year-on-year revenue growth to INR 209.00 crore in Q2, despite facing operational challenges. The company's performance was marked by resilience in the face of a fire incident at its Dahej plant, which led to increased costs and a revised outlook for its battery chemicals business.

Financial Highlights

• Revenue: INR 209.00 crore, up 8% year-on-year
• Gross Profit: Improved by 16%, with a 350 basis points margin expansion
• EBITDA and PAT: Affected by elevated costs related to the Dahej plant fire incident

Operational Resilience

Dr. Harin Kanani, Managing Director of Neogen Chemicals, highlighted the company's operational resilience in Q2. Despite the temporary impact of the Dahej plant outage, Neogen swiftly relocated production to alternate plants and leveraged capacity from key outsource partners. This strategic maneuver ensured the maintenance of volume trajectory, although it incurred additional temporary costs.

Battery Chemicals Business Update

The company has revised its guidance for the battery chemicals business due to delays in Indian gigafactory ramp-ups and customer approvals:

• Revenue Forecast: Revised to INR 30.00-40.00 crore (down from the earlier estimate of INR 300.00 crore)
• Future Revenue Projection: INR 400.00-500.00 crore

Dr. Kanani explained, "We anticipate mechanical completion before the end of this year and then commence trial production followed by commercial production in first half of FY27, which is April to September 2026 and electrolyte salt in H2 of FY27 aligning with the expected rollout of ACC battery capacities in India and growing non-FEOC global demand for the salt."

Strategic Developments

Indo-Japan Joint Venture

Neogen has formed a strategic joint venture with Morita Investments for lithium-ion battery materials, positioning itself as a key player in the non-FEOC (Foreign Entities of Concern) compliant supply chain.

Customer Approvals

A leading Indian gigascale customer has completed the stringent Production Part Approval Process (PPAP) for Neogen's Dahej plant, approving it for long-term commercial electrolyte supply.

International Market Response

The company received positive feedback from the international community for its joint venture, offering a combination of low cost from India with reliability from international technology for electrolyte salt.

Future Outlook

Neogen Chemicals remains committed to its long-term growth strategy, focusing on volume growth, operational efficiency, and transformative projects. The company aims to achieve full utilization of its battery chemicals capacity by FY29, with projected revenues of INR 2,400.00-2,900.00 crore at full utilization.

Dr. Kanani concluded, "Despite global economic headwinds, our commitment to volume growth, enhancing operational efficiency and driving transformative projects reinforces our confidence in achieving a robust long-term trajectory and delivering sustainable value creation."

As Neogen Chemicals navigates through these challenges and opportunities, investors and industry observers will be keenly watching the company's progress in the rapidly evolving specialty chemicals and battery materials markets.

Neogen Chemicals Limited , a prominent player in the Indian chemical industry, has issued a corrigendum to address typographical errors in its unaudited financial results for the quarter and half-year ended September 30, 2025. The company has revised several key financial ratios in both its standalone and consolidated results, emphasizing that these corrections do not materially impact the financial statements.

Standalone Results Corrections

The company has made significant adjustments to its standalone financial ratios:

Consolidated Results Revisions

For the consolidated results, Neogen Chemicals has made the following corrections:

Impact and Company Statement

Neogen Chemicals has clarified that these corrections are not material errors and do not impact the financial statements in any manner. The company promptly executed the necessary corrections upon noticing the inadvertent typographical errors in Note No. 1 of its financial results.

Transparency Measures

In line with regulatory requirements, Neogen Chemicals has:

1. Submitted the revised information to both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
2. Updated the corrected financial information on the company's official website.
3. Hosted an Earnings Conference Call for analysts and investors on November 10, 2025, with the audio recording available on the company's website.

These actions demonstrate Neogen Chemicals' commitment to transparency and accurate financial reporting, ensuring that investors and stakeholders have access to the most up-to-date and correct financial information.

Investors and analysts are advised to refer to the corrected ratios for a more accurate assessment of Neogen Chemicals' financial performance for the quarter and half-year ended September 30, 2025.