Neogen Chemicals Limited (NEOGEN) Q2 FY27 Financial Results: PAT ₹17.1 & Revenue ₹250.3 Cr(2 announcements)

Investor Takeaways

Overall Tone: Positive

Key Financial Highlights

What Changed

Neogen Chemicals reported consolidated revenue of ₹250.3 crores for Q1 FY27, up 34% year-on-year, with net profit at ₹17.1 crores, up 62% YoY. Gross profit jumped 194% YoY to ₹30 crores, signaling improved profitability and operational momentum. EBITDA rose 53% YoY to ₹48.2 crores, supported by higher margins and efficient scaling. The company advanced its Dahej plant reconstruction and new battery materials facility, targeting a FY27 startup. Capacity expansion and strategic acquisitions are underway to capitalize on growth in lithium-based products under the PLI scheme. The financial performance reflects stronger-than-expected margins and execution progress in high-growth segments.

Peer Comparison

Neogen trades at a lower P/E multiple compared to Solar Industries and Pidilite, suggesting relatively lower valuation pressure, though still elevated. Market capitalization is significantly smaller than Solar Industries and Pidilite, indicating a mid-cap positioning within the sector.

Risks & Concerns

Quarterly Trend

The company has demonstrated consistent revenue growth over the past four quarters, with net profit showing a sharp acceleration in Q1FY27 to ₹17.1 crores from ₹10.01 crores in Q3FY25. OPM has remained relatively stable, hovering between 17.12% and 17.93%, indicating margin resilience despite rising input costs and scale-related investments. The upward trend in profitability from Q3FY25 to Q1FY27 aligns with the company’s strategic focus on higher-margin battery materials and operational recovery.

Investor Takeaways

Overall Tone: Positive based on the numbers only.

Key Financial Highlights

What Changed

Neogen Chemicals reported consolidated revenue of ₹250 Cr in Q1 FY27, marking a 34% year-on-year increase. Net profit rose 67% YoY to ₹17 Cr, supported by strong volume growth in Organolithium and Battery Chemicals segments. EBITDA grew 53% YoY, indicating improving operational efficiency. The results were achieved despite the temporary shutdown of the Dahej plant and elevated input costs, underscoring the company’s ability to maintain momentum through challenging conditions. The filing highlights that the battery materials project remains on track for completion in H1/H2 FY27, and the replacement Dahej facility is nearing operational readiness. Capital expenditure plans are aligned with long-term growth objectives, positioning the company for sustainable expansion beyond the current fiscal year.

Peer Comparison

Neogen Chemicals trades at a P/E ratio of 88.93, which is lower than Solar Industries (132.27) and Pidilite (75.73), but higher than SRF (69.51). The company’s market capitalization reflects its position within the mid-to-large cap segment of the chemicals industry.

Risks & Concerns

Quarterly Trend

The company has demonstrated consistent revenue growth over the last four quarters, with profitability and operating margins showing steady improvement. The most recent quarter’s performance (Q1FY27) extends this upward trajectory, with revenue and profit growth accelerating compared to the same period last year and sequentially.

About Neogen Chemicals Limited (NEOGEN)

Chemicals · Chemicals & Petrochemicals · Listed on NSE

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