Neogen chemicals has received Rs 60 crore as the third on-account insurance payment for the fire incident that occurred at its Dahej facility in March 2025. The payment was released based on recommendations from surveyors in their interim report, bringing the company's total insurance claims received to Rs 140 crore.

Insurance Claim Settlement Details

The insurance payment relates to the fire incident that took place at the Multi-Purpose Plant (MPP3) facility, warehouse, and tank farms located at Dahej SEZ on March 5, 2025, at around 12:30 a.m. IST. The company disclosed that further settlement will be determined in various stages following the completion of assessment for loss of property, plant and equipment including other assets at the Dahej SEZ Plant.

Financial Impact Assessment

The company has recognized a total loss of Rs 348.16 crore on a standalone basis, which increases to Rs 362.90 crore on a consolidated basis. This loss accounts for damage to property, plant and equipment, inventory, and estimated cost of incidental charges. Neogen Chemicals has recognized an insurance claim receivable of Rs 334.60 crore on a standalone basis after adjusting applicable deductibility.

The net impact after considering insurance claims stands at Rs 13.56 crore on a standalone basis and Rs 14.08 crore on a consolidated basis. Additionally, the company has received Rs 3.48 crore from the sale of salvaged scrap materials.

Production Status and Recovery Plans

Production and operations at the affected Multi-Purpose Plant (MPP3) facility, warehouse, and tank farms remain temporarily suspended. However, the company has initiated construction of a replacement plant, with commissioning scheduled for Q1 FY27.

To minimize business disruption, Neogen Chemicals has shifted production of critical select specialty products to other sites based on customer approvals. The company is also implementing planned expansion at its Patancheru Plant to help minimize the impact on earnings going forward.

Regulatory Compliance

The disclosure was made under Regulation 30 and Regulation 51 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This update follows previous disclosures made on March 5, 2025, March 7, 2025, April 23, 2025, June 27, 2025, and July 16, 2025 regarding the fire incident. The company continues to assess the full extent of losses including loss of profit due to business interruption and reinstatement value of assets.

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.