Neogen Chemicals posts higher Q3 FY26 revenue

Neogen Chemicals Limited reported steady revenue growth in Q3 FY26, but profitability declined year-on-year due to margin pressures. The company also announced a ₹150 crore fundraise plan and fresh ESOP grants.

Neogen Chemicals Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, reflecting revenue growth alongside a decline in profitability.

Q3 FY26 Performance

The specialty chemicals manufacturer posted standalone revenue from operations of ₹215.60 crore in Q3 FY26, up 7.6% from ₹200.41 crore in the same quarter last year. However, net profit fell sharply to ₹8.77 crore, compared to ₹14.41 crore a year ago, indicating continued margin pressure.

Basic earnings per share (EPS) declined to ₹3.32 from ₹5.46.

Nine-Month Financials

For the nine-month period ended December 31, 2025, revenue rose to ₹606.86 crore, up from ₹569.90 crore in the corresponding period last year. Net profit stood at ₹32.30 crore, down from ₹43.21 crore, while EPS slipped to ₹12.24 from ₹16.38.

Consolidated Results

On a consolidated basis, Q3 FY26 revenue increased to ₹220.02 crore versus ₹201.43 crore last year. Consolidated net profit declined to ₹3.69 crore from ₹10.01 crore. Nine-month consolidated revenue reached ₹615.40 crore, with profit at ₹17.33 crore.

Corporate Developments

The Board approved several key initiatives:

Fundraising: In-principle approval to raise up to ₹150 crore through a preferential equity issue, based on promoter group intent and subject to regulatory clearances.

ESOPs: Grant of 50,200 stock options to 55 employees under Tranche II and vesting approval for 4,650 options effective April 1, 2026.

Financial Position

As of December 31, 2025, Neogen reported a current ratio of 1.51, debt-equity ratio of 0.89, and net worth of ₹803.37 crore. Operating margin remained steady at 17%.

Insurance Recovery Update

The company continues to address the impact of the March 2025 fire at its Dahej SEZ plant. During the nine-month period, it received ₹83.48 crore in insurance-related proceeds, including ₹80 crore as on-account payment and ₹3.48 crore from scrap sales.

The results were reviewed by statutory auditors and approved by the Board on February 11, 2026.