Neogen Chemicals Limited has disclosed receiving a customs penalty order from regulatory authorities, imposing significant financial implications totaling ₹1.23 crore. The specialty chemicals manufacturer received the order on February 10, 2026, relating to compliance issues under the advance authorization scheme.

Penalty Details and Financial Impact

The Office of the Commissioner of Customs, Raigad, Maharashtra issued Order no. 382/2025-26/Commr./NS-II/CAC/JNCH dated February 9, 2026, imposing multiple financial penalties on the company. The order addresses non-fulfillment of export obligations through physical exports and pre-import conditions under Custom Notification no 18/2015 dated April 1, 2015.

Nature of Violations

The customs order specifically relates to violations during fiscal years 2017-18 and 2018-19. The company allegedly failed to fulfill export obligations through physical exports and did not meet pre-import conditions specified under the advance authorization terms. These obligations are part of the government's export promotion scheme that allows duty-free import of inputs for export production.

Company Response and Next Steps

Neogen Chemicals stated it is currently analyzing the case and will take appropriate actions in due course as deemed fit and in the company's interest. The management indicated plans to file an appeal before the relevant appellate or judicial authority. According to the company's disclosure, there is no material impact on financial, operational, or other activities except for the amounts mentioned in the order.

Regulatory Compliance

The disclosure was made under Regulation 30 and 51(2) read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded this information on its website at neogenchem.com/announcements/ as part of its transparency obligations to stakeholders.

Authority Details

The penalty order was issued by the Office of the Commissioner of Customs (NS-II), Jawaharlal Nehru Custom House, located in Raigad, Maharashtra. This customs house handles significant import-export activities in the Mumbai region and enforces compliance with various customs regulations and export promotion schemes.

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