Neogen Chemicals Limited released its earnings presentation for the quarter and nine months ended December 31, 2025, providing comprehensive insights into financial performance and strategic expansion initiatives in the lithium battery chemicals sector. The company also hosted an earnings conference call on February 12, 2026, with the recording made available to stakeholders.

Financial Performance Overview

The specialty chemicals company reported standalone revenue from operations of ₹215.60 crore for Q3 FY26, marking a 7% 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 with revenue from operations reaching ₹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, representing a 9% growth. 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.

Major Expansion Initiatives in Battery Chemicals

The earnings presentation highlighted significant expansion plans through Neogen Ionics for lithium battery chemicals manufacturing:

The aggregate CAPEX stands at ₹1,500 crore, with peak revenue potential ranging from ₹2,500 to ₹2,950 crore by FY29.

Strategic Joint Venture with Japanese Partner

Neogen Ionics concluded a landmark joint venture with Japan's Morita Investment Limited to produce solid LiPF6 salt globally. Neogen will hold an 80% majority stake in the new entity, Neogen Morita New Materials Limited, with the Japanese partner contributing $20 million for the remaining 20% stake. This establishes India's only non-FEOC compliant electrolyte salt plant with proven Japanese technology.

Corporate Actions and Fund Raising

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

Fire Incident Impact and Insurance Recovery

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 and ₹3.48 crore from scrap sales. The presentation noted that recoveries from the Loss on Profit Policy are expected in FY27.

Earnings Conference Call for Stakeholders

In compliance with regulatory requirements, Neogen Chemicals hosted an earnings conference call for analysts and investors on February 12, 2026, at 2:00 p.m. The company made the audio recording of the conference call available on its website at https://neogenchem.com/wp-content/uploads/ecr003.mp3 for stakeholder access.

The earnings presentation was made available on the company's website at https://neogenchem.com/financial-performance/ and communicated to stock exchanges on February 12, 2026.

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.