NEOGEN
Micro CapNeogen Chemicals Limited
Industrials
Neogen Chemicals is a leading Indian manufacturer of Bromine and Lithium-based specialty chemicals, serving pharmaceutical, agrochemical, engineering, and battery materials industries. The company focuses on custom synthesis and contract manufacturing, with a growing pivot towards lithium-ion battery materials.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 77/100Rev +22% YoY · PAT +450% YoY · +12% QoQ · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹247 Cr | +21.7% | +12.3% |
| EBITDA | ₹44 Cr | +22.2% | +37.5% |
| Operating margin | 18.0% | +0 bps | +400 bps |
| PAT | ₹11 Cr | +450.0% | +175.0% |
| PAT margin | 4.5% | +346 bps | +263 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Consolidated Q4 FY26 revenue grew 22% YoY to INR 246.6 crore, with PAT up 373% YoY to INR 11.4 crore, driven by rising volumes and sustained plant utilization despite supply chain disruptions and Dahej plant transition.
Neogen demonstrated strong Q4 FY26 performance, with significant PAT growth from a low base due to the prior year's Dahej fire. The company is strategically pivoting into high-growth battery materials, backed by promoter capital infusion and ongoing capacity expansions. Execution of large-scale projects and customer qualification remain key monitoring points.
Q4 FY26 Revenue by Geography (Consolidated)
Latest issuer-disclosed distribution across 2 reported categories.
Battery Materials Segment (Neogen Ionics)
Strengthening position in India's evolving lithium-ion battery materials ecosystem, aligned with 'Atmanirbhar Bharat' vision and global demand for non-Chinese suppliers.
Dahej Replacement Plant
Reconstruction is on track, with commissioning expected by June 2026, aiding standalone operations to resume normalized growth.
Pakhajan Greenfield Project
Commercial manufacturing for Electrolytes (H1 FY27) and Electrolyte Salts (H2 FY27) is on track, with mechanical assembly complete and trial-run phase initiated.
Custom Synthesis & Advanced Intermediates
Enhance focus on CSM & Advanced Intermediates through portfolio expansion and capabilities in adjacent high-end complex chemistries.
Dahej Replacement Plant
Reconstruction of the replacement plant is on track; commissioning expected by June 2026.
Neogen Ionics (Dahej SEZ) - Lithium Electrolyte Salts
200 MTPA commissioned; first approval material shipped. Trial production ongoing for remaining 1,300 MTPA. New 1,000 MTPA to be commissioned by Q3 FY27.
Neogen Ionics (Dahej SEZ) - Electrolyte
2,000 MT fully commissioned in FY25.
Pakhajan Greenfield Project
Commercial manufacturing remains on track for Electrolytes (H1 FY27) and Electrolyte Salts (H2 FY27). Mechanical assembly complete, trial-run phase initiated.
Input Cost Pass-Through
Strategic pass-through mechanisms are in place to counter higher input costs, ensuring core profitability protection.
High Plant Utilization
Growth supported by rising volumes with sustained high plant utilization, ensuring continued supply despite Dahej plant transition.
Government Support for Battery Manufacturing
India's PLI scheme and 'Atmanirbhar Bharat' vision are expected to catalyze demand for locally manufactured batteries.
Global Shift to Non-FEOC Suppliers
US LiB cell producers must shift to non-FEOC suppliers by 2027, accelerating international customer transition to non-FEOC sources.
Supply Chain Disruptions & Elevated Input Costs
Performance was robust against a challenging geopolitical backdrop, with supply chain disruptions and elevated input costs partly stemming from Middle East tensions.
Expansion Overheads & One-off Costs
Performance improved despite Neogen Ionics expansion overheads and one-off Dahej replacement/toll manufacturing costs.
Higher Finance Costs
Finance costs trended higher, tracking CAPEX deployment for Neogen Ionics and the Dahej facility rebuild.
Geopolitical Tensions
Middle East geopolitical tensions can lead to supply chain disruptions and elevated input costs.
Project Execution & Cost Overruns
Revised project timelines and capital outlay for Dahej Phase 1 and Pakhajan Phase 2 battery materials projects indicate potential for execution challenges.
Customer Qualification & Demand Ramp-up
Immediate focus centers on phased capacity ramp-up, process stabilization, and customer qualification for both domestic and international markets.
Increased Debt Levels
Consolidated total debt at INR 1,330 crore in FY26, reflecting targeted funding for Dahej rebuild and Neogen Ionics capex.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company's business has seasonal drivers, with stronger performance in H2 (Oct-Mar) due to demand from Europe, HVAC, and agrochemicals. Q4 is particularly strong for lithium-based chemicals. Therefore, YoY comparison is recommended by management for like-to-like evaluation.
Consolidated Revenue
Q4 FY26: INR 246.6 crore (+22% YoY); FY26: INR 862.0 crore (+11% YoY)
Consolidated EBITDA
Q4 FY26: INR 43.9 crore (+21% YoY); FY26: INR 137.3 crore (+1% YoY)
Consolidated PAT
Q4 FY26: INR 11.4 crore (+373% YoY); FY26: INR 28.8 crore (-17% YoY)
Consolidated EBITDA Margins
Q4 FY26: 17.8% (-13 bps YoY); FY26: 15.9% (-160 bps YoY)
Transformative FY27 Outlook
FY27 is expected to be a transformative year with the commissioning of India’s largest greenfield facility for Battery Materials at Pakhajan.
Normalized Standalone Growth
Standalone operations are set to resume a normalized growth trajectory, aided by the replacement plant at Dahej expected to be commissioned by June 2026.
FY27 Standalone Revenue Guidance
Confident of achieving standalone revenues in the range of INR 875–950 crore in FY27, considering MPP-5 full production from Q2 FY26.
Strategic Backing for Projects
Projects continue to receive strong strategic backing through promoter equity infusion and planned JV partner funding support.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Dahej Replacement Plant Commissioning | On track for June 2026. | Actual commissioning and subsequent ramp-up of production to normalize standalone growth. |
| Pakhajan Greenfield Project Commercialization | Trial-run phase initiated; Electrolyte commercial manufacturing H1 FY27, Electrolyte Salts H2 FY27. | Successful commercialization, customer qualification, and demand ramp-up for battery materials. |
| Neogen Ionics Revenue Contribution | INR 36 crore in FY26. | Accelerated growth and profitability from new battery materials capacities and customer approvals. |
| Consolidated Net Debt | INR 1,295 crore in FY26. | Efficient utilization of increased debt for capex and any signs of deleveraging post project commissioning. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +41.8% / mo · near 52W high
Technical chart
NEOGENdaily · 3Y+56.5%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 70.
- SMA20 rising (~8.2% over last month) — short-term momentum positive.
- RSI(14) at 70 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 7/25 to the score.
- Cash flow contributes 1/10 to the score.
- Valuation contributes 0/30 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -2552.5%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 8th percentile of the scored universe and 7th percentile within Industrials. Main check: balance sheet trust is weak at 39/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-231 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Industrials: 7th pctile, median 68 · Micro: 5th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 1.8%.
- ▸8/8 recent quarters had positive YoY revenue growth.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸Operating cash flow is negative at ₹-231 Cr.
- ▸3 recent quarters had PAT decline worse than 25% YoY.
- ▸Debt/equity is 1.71.
- ▸Interest coverage is 1.8x.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 182.00
- P/B
- 6.18
- EV/EBITDA
- 40.10
- Market Cap
- 5221.00Cr
Profitability
- ROE
- 3.58%
- ROCE
- 6.46%
- ROA
- 1.00%
- Dividend Y
- 0.05%
Growth (CAGR)
- Revenue 5Y
- 21.00%
- EPS 5Y
- -2.00%
- Revenue 3Y
- 8.00%
- EPS 3Y
- -17.00%
Balance Sheet
- Debt/Equity
- 1.71
- Interest Coverage
- 1.83×
- Altman Z
- 2.44
- Book Value
- 309.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- -231.00 Cr
- EPS TTM
- 10.90
Shareholding
- Promoter Hold
- 53.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 94%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.