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 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.