Neogen Chemicals Limited , a prominent player in the specialty chemicals sector, has announced its financial results for the quarter ended September 30, 2025, showcasing a mixed performance with revenue growth and regulatory challenges.

Revenue and Profit Performance

The company reported a revenue from operations of ₹206.68 crore for Q2 FY2026, marking a significant increase from ₹186.54 crore in the corresponding quarter of the previous year. This 10.8% year-on-year growth demonstrates Neogen Chemicals' resilience in a competitive market landscape.

Neogen Chemicals' profit after tax for the quarter stood at ₹9.31 crore, reflecting the company's ability to maintain profitability amidst various operational challenges.

Financial Highlights

Regulatory Compliance and Fines

The company disclosed receipt of fine notices from both BSE and NSE, totaling ₹1,69,920. These fines were imposed for non-compliance with Regulation 17(1A) of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations. The regulation pertains to the requirement of passing a special resolution for the continuation of a non-executive director beyond the age of 75 years.

Neogen Chemicals has stated that it has applied for a waiver of these fines and is currently awaiting a response from the stock exchanges.

Insurance Claim Update

During the half-year period, Neogen Chemicals received ₹80.92 crore from insurance claims related to a fire incident at its Dahej plant in March 2025. This substantial inflow is expected to aid in the company's recovery and operational stabilization following the incident.

Debt Issuance

In a move to strengthen its financial position, Neogen Chemicals issued non-convertible debentures (NCDs) worth ₹200 crore in August 2025. This debt issuance may provide the company with additional capital for its growth initiatives and operational needs.

Outlook

While Neogen Chemicals has demonstrated revenue growth, the regulatory fine and the ongoing recovery from the March 2025 fire incident present challenges that the company will need to navigate carefully. The successful resolution of the compliance issue and the effective utilization of the insurance claim proceeds will be crucial for the company's performance in the coming quarters.

Investors and market observers will likely keep a close watch on how Neogen Chemicals balances its growth initiatives with regulatory compliance and operational recovery in the near future.

Neogen Chemicals Limited, a leading manufacturer of specialty chemicals in India, has made a significant stride in corporate governance by appointing its first non-promoter family member as Chairman. This move, effective October 1, 2025, marks a new chapter in the company's 36-year history and aligns with best practices in corporate governance.

Key Appointments and Structural Changes

The board of Neogen Chemicals has approved several high-profile appointments, separating the roles of Chairman and Managing Director:

Enhanced Governance and Strategic Vision

The appointment of Anurag Surana as Non-Executive Chairman is particularly noteworthy. With his extensive experience in the specialty chemical industry and board positions in several leading companies, Surana is expected to bring valuable expertise and mentorship to Neogen's leadership team.

Dr. Harin Kanani, Managing Director at Neogen Chemicals, commented on the changes: "This structural enhancement is the bedrock of Neogen's commitment to best-in-class governance, demonstrating our dedication to accountability and transparency. Moreover, this move will empower our existing leaders, ensuring they are well-equipped to contribute significantly to the Company's future growth."

Future Growth and Expansion

These appointments come at a crucial time for Neogen Chemicals. The company has been expanding its product portfolio and manufacturing capabilities:

• Currently manufactures over 246 specialty chemical products
• Operates four manufacturing facilities across Maharashtra and Gujarat
• Plans to manufacture Lithium-Ion battery materials, including electrolytes and Lithium electrolyte salts
• Neogen Ionics Limited, a wholly-owned subsidiary, has acquired 65 acres in Dahej PCPIR, Gujarat, for battery material projects

Implications for Investors

The separation of ownership and control, along with the appointment of experienced industry professionals, signals Neogen Chemicals' commitment to sustainable, professionally-driven growth. This move may potentially enhance investor confidence and contribute to long-term stakeholder value.

As Neogen Chemicals enters this new phase of corporate governance and strategic growth, investors and industry observers will be watching closely to see how these changes translate into operational efficiency and market performance.