Neogen Chemicals Ltd. is targeting a revenue of Rs 775–850 crore in the current financial year after the specialty chemicals manufacturer suffered a setback in March as its facility in Gujarat was temporarily shut after a fire incident, according to Managing Director Harin Kanani.
"Our initial target for this year was around Rs 950 to Rs 1,000 crore," he said during a conversation with NDTV Profit on Wednesday.
"We had a little bit of a setback because of a fire incident.... So, currently this year, we are focused on a revenue potential, which we have guided Rs 775 to Rs 850 crore. It will be about a 10% kind of increase over last year's performance," Kanani added.
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The Dahej facility is currently being rebuilt. Once complete, the company's revenue guidance for FY27 will be Rs 1,000 to Rs 1,100 crore, the managing director added.
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Kanani expressed confidence in maintaining margin. "We have sustained like 17% to 18% kind of margins... for the last seven to eight years and we look forward to being able to do that," he said.
He added that the long-term target, driven by innovation, is to move closer to 20% and beyond. For FY27, this could translate to an Ebitda of "Rs 170, Rs 180 crore or slightly higher" from the main business, up from the Rs 130-crore-plus expected in FY26.
Kanani said the quarterly figures might see some mismatch due to fire-related rebuilding expenses and accounting treatments.
The company has committed Rs 1,500 crore in capital expenditure over two years, with Rs 450–500 crore already invested. This includes smaller facilities at Dahej supporting 12–15 gigawatt-hours of electrolyte production and a major greenfield site in Pakhajan, set to come online in Q4 FY26.
For FY26, the company projects Rs 300 crore to Rs 500 crore in revenue from its electrolytes business. Revenue could exceed Rs 1,000 crore in FY27 as the Pakhajan facility ramps up. Full utilisation by FY28 or FY29 could yield Rs 2,500 crore to Rs 3,000 crore, driven by rising demand for battery materials in India and globally.
Six to seven gigafactories are slated to commence operations in India by 2025 or 2026, creating significant domestic demand. Internationally, the company has secured tie-ups for the majority of its electrolyte salt production, though lengthy approval processes introduce some variability, according to Kanani.
On the pricing strategy for electrolytes, Kanani said: "We have said this is an ROC-driven business... on full utilisation, we are targeting like a 20% ROC."
He explained that while absolute Ebitda per tonne might change with scale, the company aims for transparent pricing, passing through input costs like lithium, and focusing on controlling manufacturing costs and investments.
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