NEOGEN Q3 FY26 earnings call.
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Revenue
₹220 Cr
verified against source
Revenue YoY
9%
reported change
EBITDA
₹32 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
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What the record says.
Neogen Chemicals reported Q3 FY26 revenue of 220 crore (9% YoY) with EBITDA at 32 crore and PAT of 4 crore, pressured by transient headwinds. Gross profit grew 13% YoY with ~150bps margin expansion, but EBITDA was impacted by Neoen Ionics ramp-up costs, Dahej fire incident toll manufacturing expenses, and higher finance costs from plant reconstruction. Insurance claims received stood at 83.48 crore (9M FY26), with net claim receivable at 251.12 crore. The strategic Indo-Japan JV with Morita (80:20 split, $20M investment) for LiPF6 salt production is progressing, integrating Japanese technology for non-China-compliant supply chains. The Patanjali greenfield project remains on track for H1 FY27 (electrolyte) and H2 FY27 (salt) commercialization, synchronized with India's ACC battery rollout. 400-500 crore battery chemicals revenue guidance for FY27 is maintained. Risks include customer approval delays beyond June for Dahej site audits, working capital deterioration (higher inventory/receivables), and dependency on successful Patanjali commissioning.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained full-year guidance, expecting major sales contribution from Q2 FY27 onwards as Dahej site approvals complete by June and Patanjali commercial production ramps up in H2.
- Primary customer completing final approval process by Q1 FY27; 3-4 additional customers completing audits in March/April/May. Sales expected to commence from Q2 FY27.
- Trial production for electrolyte targeted in H1 FY27, with salt production following in H2. Site approval expected by Q3, enabling Q4 FY27 sales contribution.
- Commissioning delayed from December 2025 to March 2026 due to design improvements and Mitsubishi collaboration training. Capacity synchronized with customer approval timelines.
Risks flagged
- Multiple customers have postponed on-site audits to March/April/May, pushing final approvals beyond initial Q1 timelines. Some customers may wait for Patanjali's larger capacity instead of Dahej.
- Inventory DSO and receivables increased due to toll manufacturing transition and inventory build-up ahead of Dahej restart. Target of 140-160 days inventory by FY27 year-end may pressure cash flows.
- Excluding Neoen Ionics, inorganic chemical revenue trend is downward, solely attributed to lithium price decline. Management expects Q4/Q1 benefit from recent lithium price spike.
- $20M (~$170 crore) equity from Morita is delayed pending bank approval for asset separation into subsidiary. Expected by Q1 FY27 but dependent on regulatory processes.
Key quotes
- We delivered 9% revenue growth in Q3 with a gross profit up 13% with around 150 basis points margin expansion. While topline growth was strong, EBITDA and PAT were pressured by transient costs related to Neoen Ionics ramp up, elevated operational expenses due to fire incidents and interim toll manufacturing setup and higher finance cost from Dahej plant reconstruction.
- Upon commissioning, Neoen will emerge as highly cost competitive global source for lithium salts and electrolytes backed by proven Japanese technology. We are currently seeing significant tailwinds from the US 45X tax credits, non-FOCC requirements and recent price volatility in China.
- Our guidance remains the same because the expectation was that our Dahej site will be fully ready by June and we will start having sales from basically Q1 and majorly from Q2 onwards. We have right now not considered Q4 sales from Patanjali, so that we have kept as a backup.
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