Neogen Chemicals Limited is an India-based specialty chemical manufacturer that produces bromine and lithium-based chemical compounds, along with advanced intermediates for the pharmaceutical, agrochemical, and flavors & fragrances industries. The company was originally incorporated as Neogen Chemicals Private Limited on March 7, 1989, in Thane, Maharashtra, and was later converted to a public limited company on July 2, 1998.
Neogen has established itself as a significant player, particularly in its role as a major importer of Lithium Carbonate & Lithium Hydroxide in India for the last three decades, maintaining strong relationships with global leading lithium miners and processors. The company manufactures an extensive range of specialty chemicals, including 181 organic and 17 inorganic compounds, and provides custom synthesis and contract manufacturing services.
Neogen operates two primary manufacturing facilities in India: one at Mahape, Navi Mumbai, and another at Karakhadi, Vadodara. The company also has plans for further expansion with a new facility at Dahej SEZ. In 2021-22, Neogen commenced Phase I and Phase II commercial operations of organic chemicals at full scale at its Dahej SEZ plant, significantly increasing the total organic chemicals manufacturing capacity from 130 kilo litres to 407 kilo litres of reactor capacity.
The company strategically expanded its capabilities by acquiring a 100% stake in BuLi Chemicals India Private Limited in 2023, making it a wholly-owned subsidiary. Furthermore, Neogen has forayed into the electrolyte market by signing an agreement with Japan-based MU Iconic Solutions Corporation to acquire manufacturing technology for lithium-ion battery electrolytes. To facilitate this, a wholly-owned subsidiary named "Neogen Ionics Limited" was incorporated on March 29, 2023.
- Q4 FY2024-2025:
- Net Profit: ₹2.41 crore (a decrease of 85.76% year-on-year)
- Revenue: ₹203.46 crore (a slight increase of 0.78% year-on-year, and a 0.44% growth compared to the previous quarter)
- Q1 FY2025:
- Revenue: ₹180.0 crore (9% higher than the previous year, despite challenging operating conditions)
- EBITDA: ₹30.8 crore (a 10% year-on-year increase)
- Profit After Tax (PAT): ₹11.5 crore (an 18% year-on-year growth)
- Earnings Per Share (EPS): ₹4.35 per share (compared to ₹3.92 per share in Q1 FY2024)
- Market Capitalization: ₹4,285.28 crore (as of June 30, 2025)
- P/E Ratio: 123.03
- 52-Week High: ₹2,420
- 52-Week Low: ₹1,392.75
- Market Cap: ₹4,216 crore
- Revenue (FY25): ₹778 crore
- Net Profit (FY25): ₹34.8 crore
- Return on Equity (Last 3 Years): 6.93%
- Dividend Yield: 0.06%
- Promoter Holding: 51.22%
Neogen's business is strategically divided into two primary segments:
1. Organic Chemicals: This segment involves the manufacturing of organic bromine-based compounds, advanced intermediates, specialty compounds, and Grignard reagents.
2. Inorganic Chemicals: This segment focuses on specialty inorganic lithium-based chemical products.
The chemicals produced by Neogen find extensive applications across a diverse range of industries, including:
- Pharmaceuticals
- Agrochemicals
- Engineering
- Electronics
- Polymers
- Water Treatment
- Construction
- Aroma Chemicals
- Flavors and Fragrances
- Specialty Polymers
- Japan Subsidiary Investment: In July 2025, Neogen Chemicals completed a 100% share allotment in its Japan subsidiary with an investment of JPY 2 crore.
- Fire Incident: The company faced a significant setback due to a fire incident at its Gujarat facility, resulting in an estimated loss of ₹348.16 crore. While ₹50 crore was received from insurance, the reconstruction is expected to take 9-12 months. Despite this, revenue guidance remains unchanged.
- Lithium Salts and Electrolyte Projects: Neogen is rapidly advancing its Lithium Salts and Electrolyte projects. A major ACC battery manufacturer has already commenced trial production in India, and several other manufacturers are preparing to do so within the next two years.
- Technology Acquisition: Neogen has entered into an agreement with Japan-based MU Iconic Solutions Corporation to acquire manufacturing technology for lithium-ion battery electrolytes.
Haridas Kanani, Chairman & Managing Director, commented on the Q3 FY25 results: "Our Q3 FY25 results demonstrate a robust recovery, with revenue up 22% and EBITDA up 71%. This growth is attributed to strong ramp-up in BuLi Chem and sustained growth in the base business volumes."
- Q3 FY2025 Performance:
- Revenues: ₹201.4 crore (22% YoY growth)
- EBITDA: ₹34.6 crore (71% YoY growth)
- Profit After Tax (PAT): ₹10 crore (844% YoY growth)
Neogen demonstrated resilience in FY25, achieving 13% revenue growth and a 24% improvement in EBITDA, despite operational setbacks. The company is strategically expanding its capacity for lithium salts and electrolytes and plans to further enhance production through a joint venture with Morita Chemicals.
- Revenue Target for FY26: The company targets revenue of ₹775-850 crore for FY26, a revision from the initial estimate of ₹950-1,000 crore due to the fire incident at its Gujarat facility.
- Analyst Ratings: According to analyst ratings, 85.71% of analysts recommend a 'BUY' rating for Neogen Chemicals Ltd, with an average target price of ₹2,169.86.
The company continues to focus on diversifying its end-use sectors and expanding its presence in the growing battery chemicals market, positioning itself as a key player in India's specialty chemicals industry.
