Revenue from operations jumped 22.49% YoY to Rs 201.43 crore during the quarter, boosted by volume growth in the base business and a healthy contribution from BuLi Chem. The battery chemicals arm (Neogen Ionics) has commenced lithium salt exports, contributing to the topline. Neogen Ionics is positioned for substantial growth from next financial year driven by new capacities.
Profit before tax (PBT) surged 167.54% to Rs 15.25 crore in Q3 FY25 compared with Rs 5.70 crore in Q3 FY24.
EBITDA jumped 71% to Rs 34.6 crore. Strong EBITDA growth was a result of increased plant utilization, operational efficiencies and lower employee costs. Operating leverage kicked in due to higher volume achieved on an optimized cost structure. Cost intensity in Neogen Ionics reduced during the quarter following the commencement of export sales. Margins remained strong at 17.2% despite weak pricing. Absolute EBITDA on per kilo basis remained stable.
Haridas Kanani, chairman & managing director, Neogen Chemicals said: “Our Q3 FY25 results demonstrate a robust recovery, with revenue up 22% and EBITDA up 71%. This growth is attributed to strong ramp-up in BuLi Chem and sustained growth in the base business volumes. Higher topline was achieved despite lower RM prices and resultant realizations acrossseveral product categories. New product launches and the pursuit of export opportunities drove the robust recovery. To mitigate the persistent slowdown in agrochemicals, we have strategically created additional end-use sectors such as semiconductors, flavors & fragrances and select industrial CSM opportunities
Neogen Ionics is rapidly advancing its Lithium Salts and Electrolyte projects. A major ACC battery manufacturer has already started trial production plant in India, with several others preparing to do so within the next two years. This will drive their demand for local procurement of both Electrolyte and Lithium Salt. We are on schedule to commission our greenfield Battery Materials facility in the second half of FY26. This facility, using MUIS technology, is taking shape with majority of erection and engineering works now complete. The modular construction process is proceeding with equipment assembly and installation.
Overall, we are confident of achieving FY26 revenue guidance of Rs 950-1,000 crore in the standalone business. Beyond FY26, the rapid scale up in Neogen Ionics will drive consolidated performance.”
Neogen Chemicals is India's one of the leading manufacturers of bromine-based and Lithium-based specialty chemicals. Its products are used in pharmaceutical and agrochemical intermediates, engineering fluids, electronic chemicals, polymer additives, water treatment, construction chemicals, and aroma chemicals, flavours and fragrances, specialty polymers, chemicals and vapour absorption chillers – original-equipment manufacturers and with new upcoming usage in lithium-ion battery materials for energy storage and electric vehicles (EV) application.