Stories
Neogen Chemicals Targets ₹1,350 Crore Revenue by FY27 Driven by Battery Business Boom
- •Neogen Chemicals aims for ₹1,250-1,350 crore consolidated revenue in FY27, a significant increase from ₹850 crore in FY26, primarily fueled by its battery materials business.
- •Managing Director Harin Kanani projects a potential ₹3,500-4,000 crore consolidated revenue over three years if the battery segment performs optimally.
- •The subsidiary Neogen Ionics, focusing on battery materials, is expected to contribute approximately ₹300 crore to FY27 revenue, up from ₹35 crore last year.
- •Neogen Chemicals has committed ₹1,800 crore to its battery business, with ₹1,300 crore already invested, and is nearing completion of its electrolyte plant.
- •The company recently raised ₹600 crore through a QIP, which will be used to reduce debt and support working capital, aiming to lower parent-level debt to ₹200-250 crore by FY27.
Key Questions Answered
Neogen Chemicals is targeting a consolidated revenue of ₹1,250-1,350 crore in FY27, up significantly from approximately ₹850 crore in FY26. The parent business is expected to contribute about ₹1,050 crore, while its subsidiary Neogen Ionics is projected to bring in around ₹300 crore.
Neogen Chemicals has committed approximately ₹1,800 crore toward its battery business, with around ₹1,300 crore already invested. The remaining capital expenditure will be funded through debt at the subsidiary level.
Neogen Chemicals plans to use the proceeds primarily to reduce debt and support working capital requirements. The company aims to lower its parent-level debt to around ₹200-250 crore by the end of FY27, bringing its debt-to-EBITDA ratio down to approximately 1-1.5 times.
