Neogen Chemicals Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance picture with revenue growth offset by margin pressures.

Financial Performance Overview

The specialty chemicals company reported standalone revenue from operations of ₹215.60 crore for Q3 FY26, marking an increase from ₹200.41 crore in the corresponding quarter of the previous year. However, profitability faced headwinds as net profit declined to ₹8.77 crore compared to ₹14.41 crore in Q3 FY25.

Nine-Month Performance Demonstrates Resilience

For the nine-month period ended December 31, 2025, the company showed stronger overall performance. Revenue from operations reached ₹606.86 crore compared to ₹569.90 crore in the corresponding period last year. Net profit for the nine months stood at ₹32.30 crore, though lower than ₹43.21 crore in the previous year.

Consolidated Results Show Similar Trends

On a consolidated basis, the company reported revenue of ₹220.02 crore for Q3 FY26 compared to ₹201.43 crore in the previous year. Consolidated net profit for the quarter was ₹3.69 crore versus ₹10.01 crore in Q3 FY25. The nine-month consolidated revenue stood at ₹615.40 crore with net profit of ₹17.33 crore.

Corporate Actions and Strategic Initiatives

The Board of Directors approved several significant corporate actions during their meeting held on February 11, 2026:

Fund Raising Initiative:

• Granted in-principle approval for raising funds up to ₹150 crore through preferential equity issue
• Based on intent received from the Promoter Group
• Subject to regulatory approvals under SEBI ICDR Regulations

Employee Stock Option Scheme:

• Approved grant of 50,200 stock options in Tranche II to 55 eligible employees
• Options convertible into equal number of equity shares with face value of ₹10 each
• Approved vesting of 4,650 employee stock options effective from April 1, 2026

Key Financial Ratios and Metrics

The company maintained reasonable financial health indicators as of December 31, 2025:

Fire Incident Impact Continues

The company continues to manage the aftermath of the fire incident at its Dahej SEZ Plant that occurred on March 5, 2025. During the nine months ended December 31, 2025, the company received ₹83.48 crore from insurance settlements, comprising ₹80.00 crore as on-account payment from the insurance company and ₹3.48 crore from scrap sales.

The results were reviewed by statutory auditors Chandabhoy & Jassoobhoy and recommended by the Audit Committee before Board approval on February 11, 2026.

Source: Neogen Chemicals Limited

Neogen Chemicals Limited has announced significant developments in its Employee Stock Option Plan, with the Nomination and Remuneration Committee approving both new option grants and vesting of previously allocated options under the NCL ESOP Scheme 2024.

Tranche II Option Grant Details

The company's Nomination and Remuneration Committee, in its meeting held on February 11, 2026, approved the grant of 50,200 stock options in Tranche II to 55 eligible employees of the company and its subsidiaries in India. Each option is convertible into one equity share of face value Rs. 10 each.

The exercise price of Rs. 1,183.14 per option represents a 10% discount to the market price, calculated based on the closing price on the National Stock Exchange on the previous trading day.

Vesting Schedule for Tranche II

The Tranche II options will vest over a three-year period following a structured timeline:

After vesting, options can be exercised within a maximum period of 2 years from the respective vesting date.

Tranche I Vesting Approval

Simultaneously, the committee approved the vesting of 4,650 employee stock options from Tranche I, which were originally granted to employees on April 1, 2025. The Tranche I grant involved 36,400 options distributed among 41 eligible employees at an exercise price of Rs. 1,389 per option.

ESOP Scheme Framework

The NCL ESOP Scheme 2024 allows for a maximum of 2,50,000 options, representing 0.95% of the company's total paid-up share capital. The scheme is implemented through a trust route, where the trust may acquire shares through secondary market acquisition or fresh allotment from the company.

Key features of the scheme include:

• Vesting period: Minimum 1 year to maximum 5 years from grant date
• Exercise period: Maximum 2 years from vesting date
• Exercise price linked to market price with committee-approved discounts
• Shares rank pari-passu with existing equity shares
• No lock-in period for allotted shares

The scheme is administered by the Nomination and Remuneration Committee, which delegates administrative powers to the trust for proper scheme management. All equity shares allotted pursuant to option exercise will rank equally with existing equity shares in all respects.