Thane-based Neogen Chemicals Limited said on 1 November 2026 that its subsidiary Neogen Ionics Limited earned ₹37 crore of battery chemicals revenue in Q2 FY27 (July–September 2026), against ₹5.4 crore a year earlier. Spending on the ₹1,795 crore Dahej and Pakhajan projects in Gujarat has reached ₹1,537 crore. Trial production and customer approvals are still under way, and management expects a substantial scale-up from Q4 FY27.
Key Details
The company’s press release and investor presentation give this status for the battery chemicals business:
- Lithium electrolyte salts and additives: 1,200 MTPA (metric tonnes per annum) of the 1,500 MTPA project is commissioned, with 1,000 MTPA of that added in Q2 FY27 and trial production under way on the remaining 300 MTPA
- New salts capacity: 1,000 MT to be commissioned by the second half of FY27, along with 500 MT of intermediates
- Electrolyte: the 2,000 MT plant at Dahej SEZ was fully commissioned in FY25, and a further 30,000 MT is planned for FY27
- Total planned capacity: 32,000 MT of electrolyte and 5,500 MT of salts and additives, across a combined site area of 2,70,740 square metres
- Project cost: Dahej Phase 1 at ₹428 crore, targeted for completion by February 2027, and Pakhajan Phase 2 at ₹1,367 crore, expected by March 2027
About ₹258 crore of the project cost remains to be spent, and spending in Q2 FY27 works out at ₹239 crore from the ₹1,298 crore reported in July 2026. The company said timelines remain on schedule, and it now describes the milestones as mechanical completion, for electrolytes in the first half of FY27 and salts in the second half. In May 2026, it described those milestones as commercial manufacturing. The new salts capacity has also moved from Q3 FY27 in the May release to the second half of FY27. It has not named its customers or disclosed contract values. It has also not given a battery chemicals revenue target.
Customers and Approvals
At the electrolyte facility, mechanical assembly is complete and trial runs have begun, according to the release. The May 2026 release placed mechanical assembly at the Pakhajan project. Validation and product approvals are under way with top domestic battery makers, and electrolyte recipes have come from five to six gigafactories for joint trials.
In lithium electrolyte salts, the company has provisional approvals from five major international customers, up from four in July 2026. It has also completed final site audits for three US-based electrolyte manufacturers. Commercial supply has started with two customers. In July 2026, the company said supply would begin after final approvals of plant trials.
Neogen Ionics also signed a business transfer agreement to move the lithium-ion electrolyte salt undertaking, including LiPF6, to Neogen Morita New Materials Limited (NML). The lump-sum cash consideration is ₹245 crore on a going-concern basis. NML is a step-down subsidiary, in which Morita Investment Limited, a wholly owned subsidiary of Morita Chemicals Industries Co. Limited, was to hold 9.09% after a preferential issue.
Company Financials
Consolidated revenue rose 42% to ₹296 crore, EBITDA (earnings before interest, tax, depreciation and amortisation) rose 51% to ₹45 crore, and profit after tax rose 144% to ₹8 crore. Standalone revenue was ₹288 crore, with EBITDA of ₹54 crore and profit after tax of ₹21 crore. The company says consolidated EBITDA reflects initial fixed-cost absorption at Neogen Ionics while revenue and capacity use ramp up. It does not break out sales between group companies.
Management Comment
Managing Director Harin Kanani said the battery chemicals business is moving from capital investment to an execution and ramp-up phase. The expected scale-up in Q4 FY27 and beyond rests on advanced chemistry cell (ACC) plants coming online in India, Kanani said, and on US electrolyte manufacturers shifting towards non-FEOC (foreign entity of concern) suppliers from India.
Policy Backdrop
The company links its outlook to rules in India and the US. Its presentation says US lithium-ion cell producers need to meet FEOC guidelines to secure the US 45X tax credit, with a full transition to non-FEOC suppliers expected by 2027. In its July 2026 release, it cited production ramp-up by manufacturers under the production-linked incentive (PLI) scheme for ACC batteries. It also cited the allocation of a 10 GWh re-bidding tranche. The same release referred to the government’s intention to support battery component makers through a proposed PLI scheme, and said this would speed up supply chain localisation. Neogen has not said what incentive, if any, it has received or expects.
About Neogen Chemicals
Incorporated in 1989, Neogen Chemicals makes bromine-based and lithium-based speciality chemicals, with more than 313 products. It operates facilities at Mahape in Maharashtra, Dahej SEZ and Karakhadi in Gujarat, and Patancheru in Telangana. Neogen Ionics, its wholly owned subsidiary, is dedicated to battery chemicals.
A fire damaged the Dahej SEZ plant on 5 March 2025. The company has recovered ₹164 crore to date, comprising ₹155 crore of on-account insurance claims and ₹9 crore from salvage. On 29 October 2026, it accepted a further ₹152 crore from the insurer, taking the total received or receivable to ₹316 crore. It said talks on the balance are continuing.
The Company’s Recent Pipeline
- July 2026: Neogen Ionics reported Q1 FY27 revenue of ₹19 crore, against ₹5 crore a year earlier.
- September 2026: The company raised ₹600 crore through its first qualified institutions placement, for debt repayment, long-term working capital and general corporate purposes.
- September 2026: NML approved a preferential issue of 7,20,000 shares to Morita Investment Limited for ₹76.80 crore, under the joint venture agreement of 31 August 2025.
- October 2026: The board approved doubling organolithium capacity at Patancheru to 600 MTPA from 300 MTPA, at an estimated cost of up to ₹45 crore.
Outlook
The company gives no date for ending trial production on the last 300 MTPA of salts. The ₹245 crore transfer to NML and product approvals with domestic cell makers are the other open items. Q3 FY27 results will show the next battery chemicals revenue figure.
Official Sources
- Neogen Chemicals Limited – Press Release, Q2 FY27 Results (NSE, 1 November 2026): https://nsearchives.nseindia.com/corporate/NEOGEN_01112026233305_PRfinal.pdf
- Neogen Chemicals Limited – Investor Presentation Q2 FY27 (NSE, 1 November 2026): https://nsearchives.nseindia.com/corporate/NEOGEN_01112026233447_EPfinal.pdf
- Neogen Chemicals Limited – Board Meeting Outcome and Results (NSE, 31 October 2026): https://nsearchives.nseindia.com/corporate/NEOGEN_31102026200351_BMOutcome_31102026_Final.pdf
- Neogen Chemicals Limited – Press Release, Q4 FY26 Results (NSE, 17 May 2026): https://nsearchives.nseindia.com/corporate/NEOGEN_17052026232336_PR.pdf
- Neogen Chemicals Limited – Disclosure on NML Preferential Issue (NSE, 26 September 2026): https://nsearchives.nseindia.com/corporate/NEOGEN_26092026195328_NMLPI.pdf
- Neogen Chemicals Limited – Press Release, Q1 FY27 Results (NSE, 26 July 2026): https://nsearchives.nseindia.com/corporate/NEOGEN_26072026165704_PR.pdf
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