NEOGENBSENeogen Chemicals LtdMediumNeutral
Announced Sun, 17 May · 23:17 IST

Earnings presentation - Q4FY2026

Investor Communications View source PDF

NEOGEN · price

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₹1665.00
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₹1690.00
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AI summary

Neogen Chemicals reported Q4 FY26 consolidated revenue of ₹247 crore (up 22% YoY) and full-year revenue of ₹862 crore (up 11% YoY). PAT surged 373% to ₹11.4 crore in Q4, boosted by a low base from Dahej fire incident costs in Q4 FY25, but FY26 PAT declined 17% to ₹28.8 crore. EBITDA margins contracted—standalone margins fell 134 bps to 17.7% and consolidated to 15.9%—despite revenue growth, due to higher input costs, Dahej transition expenses, and Neogen Ionics expansion overheads. Finance costs rose sharply by 55-57% tracking CAPEX deployment for battery materials. Promoter infused ₹161 crore via preferential allotment to fund expansion. The company guided FY27 standalone revenue of ₹875-950 crore, implying modest growth. The Dahej replacement plant is on track for June 2026 commissioning, and the Pakhajan battery materials project (total revised cost ₹1,795 crore) remains targeted for H1 FY27 (Electrolytes) and H2 FY27 (Salts).

Likely market impact

Margins are under pressure from elevated input costs and heavy capex spending, which is weighing on near-term profitability despite revenue growth. The large debt-funded expansion (net debt at ₹1,295 crore) increases financial risk, though the promoter infusion and insurance recoveries provide some support. FY27 revenue guidance appears conservative, and the battery materials ramp-up remains the key catalyst for future growth.