Neogen Chemicals Limited, a leading Indian manufacturer of bromine-based and lithium-based specialty chemicals, reported a strong financial performance for the financial year ended March 31, 2025 (FY25), despite major operational disruptions caused by a fire incident at its Dahej facility.

The company recorded a 13% year-on-year (YoY) increase in revenue, reaching Rs. 778 crore. This growth came on the back of robust volume expansion in its core chemical segment, including contributions from its wholly owned subsidiary BuLi Chem, and early revenues from Neogen Ionics, the lithium-focused business division.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 24% YoY to Rs. 136 crore, with EBITDA margins improving to 17.5%, up from 15.9% in FY24. The growth in EBITDA was primarily attributed to higher operating leverage and cost optimization measures.

However, the company’s profit after tax (PAT) stood at Rs. 35 crore, registering only a 2% growth compared to FY24. This modest increase was largely due to an exceptional loss of Rs. 14.08 crore related to the fire incident at the Dahej plant, which caused damage to inventory and fixed assets. Earnings per share (EPS) for the year fell slightly to Rs. 13.20, compared to Rs. 13.96 the previous year.

In Q4 FY25, the fire incident disrupted part of the company's production. Despite this, Neogen managed to post a 2% YoY revenue growth for the quarter, reaching Rs. 203 crore. EBITDA during the quarter remained flat at Rs. 36 crore, while PAT rose 86% YoY to Rs. 2 crore.

Fire Incident and Recovery Strategy

On March 5, 2025, a fire broke out at the MPP-3 facility, warehouse, and tank farms in the Dahej SEZ. Thankfully, there were no injuries or casualties. Other parts of the facility, including the Neogen Ionics production block and utilities, were unaffected.

The company has insurance coverage for both asset damage and business interruption losses. To mitigate disruption, Neogen shifted production to its other facilities after receiving customer approvals. Construction of a replacement plant at an adjacent site within Dahej has already begun.

Due to the temporary loss in capacity, Neogen has revised its FY26 revenue guidance downward from Rs. 950–1,000 crore to Rs. 775–850 crore.

Strategic Expansion and Lithium-Ion Battery Push

Neogen Chemicals is actively expanding into battery chemicals, an area with high strategic importance given the global push for electric vehicles (EVs) and renewable energy storage.

Under the brand Neogen Ionics, the company has made significant progress in its Lithium Electrolyte Salts and Additives business:

• 400 MTPA new capacity planned

  • 200 MTPA already commissioned and products shipped to customers

  • Trial production underway for the remaining 200 MTPA

• 2,000 MT electrolyte plant at Dahej has been fully commissioned

The greenfield battery materials facility at Pakhajan, Dahej PCPIR, is being constructed using MUIS technology. The project has already seen a Rs. 470 crore investment in FY25, and the plant is on track for March 2026 commissioning.

To further enhance its position in the lithium battery space, Neogen Ionics is establishing a wholly owned subsidiary named Neogen Morita New Materials Limited, pending approval. This move supports the proposed joint venture with Japan’s Morita Chemical Industries, which is expected to address growing global demand for lithium-ion electrolyte salts.

Operational Efficiency and Credit Rating

In Hyderabad, the BuLi Chem facility’s capacity was more than doubled through debottlenecking, increasing active capacity from 120 MT to 300 MT.

Credit rating agency CRISIL has assigned Neogen Chemicals a long-term credit rating of A/Watch Developing and a short-term rating of A1/Watch Developing. These ratings are currently under “Watch with Developing Implications”, reflecting the impact of the fire incident and upcoming expansion risk-reward dynamics.

Future Outlook

Commenting on the performance, Mr. Haridas Kanani, Chairman & Managing Director, said

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