Neogen Chemicals Ltd Management Discussions

INDUSTRY OVERVIEW

Geopolitical Tensions Impacted Global Chemical Markets

The ongoing geopolitical tensions and the conflict between Israel and Iran disrupted global energy and commodity markets during F.Y. 2025-26. This led to volatility in the prices of crude oil, natural gas and petrochemicals, as well as supply chain disruptions. Supply uncertainties in key oil- producing regions and disruptions to trade routes heightened concerns about feedstock availability and logistics costs for the global chemical industry. Since crude oil and natural gas derivatives are critical raw materials for several chemical products, rising energy prices exerted pressure on input costs, transportation expenses and overall operating margins across the sector. The situation also contributed to cautious inventory management, temporary production adjustments and disruptions in global trade flows. The extent of the impact varied across commodity and specialty chemical segments depending on pricing power, end-user industries and supply- chain integration, resulting in overall subdued performance of the industry.

Industry Performance

The global chemical industry across emerging markets recorded lower growth in 2025 despite improved industrial activity and resilient demand. While certain regions in Europe continued to face demand-related challenges, the overall industry showed signs of recovery across key end-use sectors. According to the American Chemistry Council (ACC), global chemical production grew by 2.6% in 2025, compared with 4.0% in 2024, with growth primarily driven by Asia-Pacific, Africa and the Middle East, while Europe contracted by 1.2% after rebounding in 2024. Global chemicals production is expected to further moderate to 1.9% in 2026, reflecting a cautious global demand environment.

Global Chemicals Production

Asia-Pacific remained the key growth engine for global chemicals production, aided by strong industrial activity, expanding manufacturing capacity and sustained demand across major end-use sectors. The region grew by 4.1% in 2025, significantly outperforming the global average despite a moderation from the previous years 5.8%. Growth in Asia- Pacific is projected to ease further to 2.6% in 2026, but is expected to remain above the global average, catalysed by structural factors, such as urbanisation, industrial expansion, rising domestic consumption and continued investment in major economies, including China and India.

Global Chemicals Production Growth (%)

Global Chemicals Output (% YoY)	2024	2025e	2026f
World Chemicals Output	4.0	2.6	1.9
North America	0.3	1.2	0.5
Latin America	0.5	1.4	1.0
Europe	1.3	(1.2)	0.2
Former Soviet Union (FSU)	3.2	1.7	1.7
Africa & Middle East	3.0	2.3	3.8
Asia/Pacific	5.8	4.1	2.6

Source: ACC December 2025 Report, e= estimate, f= forecast

By segment, global chemicals output displayed broad-based moderation across most categories between 2024 and 2026. Agricultural chemicals remained the key growth driver, although growth is expected to moderate going forward. Consumer chemicals are projected to recover after a slowdown, while growth in basic and specialty chemicals is expected to remain moderate. Meanwhile, coatings and other specialty segments continued to demonstrate relatively stable performance.

Segment wise Global Chemicals Production Growth (%)

Global Chemicals Output by Segment (% YoY)	2024	2025e	2026f
World Chemicals Output	4.0	2.6	1.9
Agricultural Chemicals	76	5.8	(0.4)
Consumer Chemicals	3.3	0.4	2.2
Basic Chemicals	3.4	2.1	1.8
Organics	2.9	1.3	1.9
Inorganics	2.8	2.2	2.4
Synthetic Materials	4.6	2.6	1.0
Specialty Chemicals	3.4	3.5	2.1
Coatings	3.7	3.8	2.3
Other Specialties	3.2	3.4	2.0

Source: ACC December 2025 Report, e= estimate, f= forecast

In 2026, the global chemicals industry is expected to witness moderate growth, with overall output projected to soften. Basic chemicals are likely to witness a gradual uptick, aided by stabilising manufacturing activity, while specialty chemicals are expected to remain resilient, underpinned by consistent demand from diversified end-use sectors. Agricultural chemicals and consumer chemicals are anticipated to experience some moderation; however, overall market conditions are expected to remain supportive, reflecting a broadly constructive demand outlook across key segments.

Source: https://www.americanchemistrv.com/chemistrv-in-america/ news-trends/bloa-post/2025/buildina-the-foundation-for-arowth

INDIAN CHEMICAL INDUSTRY

Indian chemical companies witnessed strong growth over the past two decades, driven by rising domestic consumption, exports and increasing global competitiveness. The industry has evolved from a fragmented base of small, founder-led firms into a more mature sector, with the number of companies valued above USD 250 million increasing from just 19 in the early 2000s to 98 by 2025, including 41 with valuations exceeding USD 1 billion, according to the Boston Consulting Group January 2026 report. Strengthened by rising affluence, premiumisation trends and expanding demand across sectors, such as personal care, construction and manufacturing, Indias domestic chemical market is projected to grow from the current USD 150 billion to over USD 300 billion by 2030. By then, the demand for higher-value, performance-oriented chemical products is also likely to grow, driven by large-scale capacity expansion, new value chain development and increasing integration into global supply chains. Chemical production increased from 11.73 million metric tonnes (MMT) in F.Y. 2024-25 to 11.90 MMT in F.Y. 2025-26, registering a growth of 1.45%, while petrochemical production rose from 21.91 MMT to 22.25 MMT, reflecting a 1.55% increase. Consequently, total production reached 34.15 MMT in F.Y. 2025-26, compared with 33.63 MMT in the previous year, representing an overall growth of 1.55%.

Indias Chemical Trade Performance

Indias chemical trade performance remained mixed in

F.Y. 2025-26 amid changing global demand and pricing pressures. Total chemical exports declined by 2.96% to USD 20.55 billion, while imports fell marginally by 1.37% to USD 28.48 billion. Organic chemicals continued to dominate trade despite lower exports and imports, whereas inorganic chemicals recorded growth in both exports (5.97%) and imports (12.93%). Agrochemical and dye exports moderated amid pricing pressures, while dye intermediate exports increased by 1774%, reflecting resilient downstream demand. Meanwhile, higher imports of dye intermediates highlighted continued dependence on imported feedstock chemicals, while cosmetics and toiletries exports remained stable and essential oils exports grew by 3.67% during the year.

Indian Trade Performance

Segment	F.Y. 2024-25 Exports	F.Y. 2025-26 Exports	YoY Change	F.Y. 2024-25 Imports	F.Y. 2025-26 Imports	YoY Change
Dyes	2,419.17	2,189.85	(9.48)	322.28	302.14	(6.25)
Dye Intermediates	15768	185.65	17.74	1,333.03	1,524.43	14.36
Inorganic Chemicals	2,273.06	2,408.70	5.97	6,44732	7280.65	12.93
Organic Chemicals	7863.51	7680.36	(2.33)	16,30728	15,079.11	(753)
Agro Chemicals	4,271.52	3,871.29	(9.37)	1,658.19	1,534.01	(749)
Cosmetics & Toiletries	2,711.28	2,729.59	0.68	2,518.28	2,460.74	(2.28)
Essential Oils	323.71	335.61	3.67	285.49	293.86	2.93
Castor Oil	1,152.37	1,145.24	(0.62)	1.92	2.16	12.63
Total	21,172.30	20,546.29	(2.96)	28,873.79	28,47711	(1.37)

Source: https://www.pib.aov.in/PressReleasePaae.aspxRs.PRID=2224839&rea=3&lana=1 https://chemexcil.in/uploads/files/DGCIS DATA MARCH 2026.pdf

https://web-assets.bca.com/91/94/5dd007cc49d78df452b11c9dd771/buildina-the-next-indian-chemical-aiant.pdf https://chemicals.gov.in/sites/default/files/monthly/Data July 2025.pdf

INDIAN SPECIALTY CHEMICAL INDUSTRY

Within the industry, segment-wise demand trends remained broadly positive and well-distributed. Agrochemicals were backed by the need to improve crop yields and agricultural efficiency, while speciality polymers are gaining traction in automotive, electronics and high-performance industrial applications. Construction chemicals are witnessing steady growth, driven by rising investments in infrastructure, urban development and real estate across the country. Water treatment chemicals are also expanding steadily, driven by increasing concerns about water quality, wastewater management and sustainable water use across industrial and municipal applications. In parallel, electronic chemicals are benefiting from the rapid expansion of Indias electronics manufacturing and associated supply chains.

India is emerging as a key growth market for the speciality chemicals industry, aided by rising investment, expanding manufacturing capacity and increasing integration with advanced sectors such as semiconductors. The domestic semiconductor market is estimated at around USD 38 billion in 2023, USD 45-50 billion in 2024-2025 and is expected to reach USD 100-110 billion by 2030, creating a strong downstream demand for high-purity and performance-based specialty chemicals used in processes, such as cleaning, etching, coatings and advanced material applications. From the perspective of the speciality chemicals industry, this growth is strengthening Indias position in high-value, technology-driven manufacturing and enhancing its role in complex supply chains.

Overall, the Indian specialty chemical industry is steadily moving towards higher-value, innovation-led applications, driven by an increasing R&D focus and a growing emphasis on performance efficiency and sustainability. The specialty chemicals market is expected to grow at around 3.65% CAGR during F.Y. 2024-25 - F.Y. 2032-33, indicating strong long-term structural growth potential driven by product diversification and evolving industrial demand patterns.

Sources: https://www.imarcaroup.com/india-specialty-chemicals-market https://www.pib.aov.in/PressReleasePaae.aspxRs.PRID=2224839&rea=3&lana=1

GOVERNMENT INITIATIVES

The Government of India continues to strengthen the chemical sector through initiatives such as Make in India, the National Chemical Policy, Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and the Chemical Promotion Development Scheme (CPDS). These measures aim to reduce import dependence, enhance domestic manufacturing and promote investments across bulk chemicals, intermediates, polymers and specialty chemicals. Policy support for chemicals, electronics, semiconductors, batteries and advanced manufacturing is also encouraging capacity expansion, localisation and positioning India as a global manufacturing hub, thereby supporting the countrys vision of becoming a USD 30 trillion economy by 2047

GST Rationalisation

The GST rationalisation framework provides targetted relief across key chemical-intensive segments by reducing GST on critical inputs, such as ammonia, sulphuric acid and nitric acid, from 18% to 5%, thereby correcting inverted duty structures and improving cost efficiency for fertiliser and chemical manufacturers. The reduction in GST on bio-pesticides and micronutrients from 12% to 5% is expected to boost demand for sustainable agro-chemical inputs. These measures improve input affordability, drive sustainable chemical production and strengthen the competitiveness of Indias chemical industry.

Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Batteries

The PLI Scheme for ACC battery storage, launched in 2021 with a total outlay of 18,100 Crore, aims to develop 50 gigawatt-hours (GWh) of domestic battery manufacturing capacity. Around 40 GWh has been allocated to four beneficiary firms, which collectively invested approximately 3,237 Crore as of December 2025. Beyond the selected PLI beneficiaries, more than 10 manufacturers have announced plans to establish nearly 178 GWh of additional battery manufacturing capacity in India over the next five years. This is driving demand for key chemical inputs, such as cathode and anode materials, electrolytes, foils and recycling solutions, thereby strengthening Indias battery materials ecosystem.

Clean Energy Transition

Rapid expansion of renewable energy, combined with investments in electric vehicles, green hydrogen, electronics, semiconductors and advanced manufacturing, is structurally increasing demand for specialty chemicals and performance materials while enhancing the shift toward low-carbon chemical production processes.

Sources:

https://www.pib.aov.in/PressReleasePaae.aspxRs.PRID=2224542&rea=3&lana=1

https://www.pib.aov.in/FactsheetDetails.aspxRs.Id=149272&rea=3&lana=2

Lithium-ion Battery Market in India

The Indian lithium-ion battery market was valued at USD 3.59 billion in 2025 and is projected to reach USD 9.79 billion by 2034, registering a CAGR of 11.78% during 2026-2034, driven by rising demand from electric mobility, consumer electronics and renewable energy storage systems. Indias reliance on imported critical minerals, such as lithium and cobalt, presents growth opportunities for the domestic chemical industry, supported by policy initiatives under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) framework, increased exploration, recycling efforts, reduced import duties and overseas mineral sourcing. Consumer electronics accounted for the largest market share at 35.15% in 2025, followed by electric vehicles and energy storage applications. Lithium-ion phosphate chemistry led with a 30.06% share due to its safety, thermal stability and cost-effectiveness. The 0-3000mAh battery segment held a 40.12% share in 2025, driven by smartphones, wearables and portable devices. North India accounted for the largest regional share at 33% in 2025, supported by industrial infrastructure, automotive hubs and electronics manufacturing capacity, with the market evolving through investments in gigafactories, battery recycling facilities and second-life applications.

KEY SEGMENTS DRIVING THE GROWTH OF INDIAS

LITHIUM-ION BATTERY INDUSTRY

Rapidly Growing Electronics Manufacturing in India

Indias rapid expansion in electronics manufacturing under the Make in India initiative is emerging as a major structural demand driver for electronic-grade chemicals, specialty materials and advanced polymers. Electronics production is projected to reach USD 300 billion by 2026, driven by large- scale manufacturing expansion, including growth from just 2 mobile manufacturing units in 2014 to over 300 as of March 2026 and near-complete localisation, with 99.2% of mobile phones sold in India being domestically produced. This scale- up is significantly increasing demand for high-purity chemicals, solvents, gases, photoresists and process materials used across assembly and semiconductor value chains.

Strong export growth—from 1,566 Crore in F.Y. 2014-15 to over 1.2 Lakh Crore in F.Y. 2023-24, alongside a 77-fold increase in mobile exports—highlights Indias integration into global electronics supply chains and further strengthens demand for chemical inputs. Policy acceleration through Production Linked Incentive (PLI) schemes, the Phased Manufacturing Programme (PMP) and the 76,000 Crore Semicon India programme is strengthening Indias manufacturing ecosystem, along with semiconductor investments of nearly 1.52 Lakh Crore. Together, these initiatives are increasing domestic value addition and creating sustained opportunities for the chemical sector, which plays a critical upstream enabling role.

Robust Renewable Energy Growth

Indias rapid expansion in renewable energy is creating strong structural demand for specialty chemicals and advanced materials used in solar, wind and energy storage systems. With total non-fossil fuel installed capacity reaching 283.46 GW as of March 2026, including 274.68 GW from renewable sources, India has become the third-largest renewable energy market globally. The nearly 3.6-fold increase in renewable capacity since 2014, driven mainly by solar and wind expansion, is significantly boosting demand for photovoltaic materials, resins, encapsulants, insulation systems, lubricants and battery-related chemicals, positioning the chemical industry as a key enabler of the countrys clean energy transition.

India EV Expansion

The structural shift in EV adoption is positioning the chemical sector as a core enabler of Indias electric mobility transition, with rising integration across energy storage, automotive and electronics supply chains. Indias electric vehicle (EV) ecosystem recorded strong expansion in F.Y. 2025-26, accelerated by rising electrification across passenger, twowheeler and three-wheeler segments. Passenger vehicle sales reached 46.43 Lakh units, growing 79% year-on-year, while two-wheelers expanded to 2.17 Crore units, up 10.7%. With EV adoption rising sharply, electric passenger vehicle registrations alone rose by more than 80% during the year.

Source: https://www.pib.gov.in/PressReleaseDetail. aspxRs.PRID=2115171&reg=3&lang=2

https://www.siam.in/news-&-updates/press-releases/auto- industry-performance-of-q4-jan--march-2026-fy-2025-26/605 https://mnre.gov.in/en/physical-progress/

COMPANY OVERVIEW

Neogen Chemicals Limited (hereafter referred to as "Neogen Chemicals" or "the Company"), incorporated in 1989, is among Indias leading manufacturers of bromine-based and lithium-based specialty chemicals. The Company has developed strong expertise in complex chemistry, process development and contract manufacturing, enabling it to build enduring relationships with multinational corporations and leading industrial customers across global markets.

Neogen Chemicals operations have been strongly supported by an integrated manufacturing and research framework, robust quality systems and internationally recognised management standards. The Company continues to strengthen its presence in emerging high-growth segments through strategic collaborations, technology partnerships and investments in advanced chemical solutions.

Neogen Chemicals has further expanded its value proposition through customised synthesis and contract manufacturing services, leveraging in-house process capabilities to develop tailored solutions for clients. This segment has continued to grow steadily, contributing to a more diversified revenue base and deeper customer engagement across industries.

As part of its strategic expansion, the Company forayed in

F.Y. 2022-23 into lithium-ion battery materials for energy storage systems (ESS) and electric vehicle (EV) applications, aligning with the global transition towards clean energy and has been advancing year after year, strengthening its position in this field.

During F.Y. 2025-26, Neogen Chemicals continued to demonstrate strong resilience, enhanced by its diversified customer base, disciplined execution capabilities and longterm growth-focussed strategy.

COMPREHENSIVE PRODUCT PORTFOLIO

Neogen Chemicals has developed a diversified specialty chemicals platform comprising legacy bromine and lithium- based specialty chemicals along with a growing lithium- ion battery materials business through its subsidiary, Neogen Ionics. Its portfolio includes over 258 products in

F.Y. 2025-26, expanded from around 20 products in 2001 through investments in R&D, process innovation and complex- chemistry capabilities. Neogen Chemicals maintains a well- diversified business mix, with organic and inorganic chemicals contributing 85% and 15%, respectively, to its portfolio, while domestic and export markets account for 71% and 29% of its revenue, reflecting a balanced presence across geographies.

The Company caters to pharmaceutical, agrochemical, engineering chemicals, flavours and fragrances, semiconductor, electronic chemicals, construction chemicals, specialty polymers and battery chemical industries. In May 2023, the Company acquired a 100% stake in BuLi Chemicals India Private Limited from Livent USA Corporation, which owns the technology to manufacture N Butyl Lithium and other organolithium products using lithium metal, which are key reagents for lithiation reaction used in manufacturing of several complex pharmaceutical and agrochemical intermediates. Buli Chemicals- a wholly owned subsidiary was subsequently merged with Neogen Chemicals in January 2025. Through Neogen Ionics Limited, the Company has established capabilities in lithium-ion battery materials, including electrolytes, lithium electrolyte salts and additives for Li-Ion cells. In July 2025, Neogen Morita New Materials Limited was incorporated and then Neogen Ionics Limited has entered into a JV Agreement with Morita Investment Limited (MIL), Japan, a wholly owned subsidiary of Morita Chemical Industries Co., Ltd. Under the joint venture agreement parties have agreed that 20% equity stake will be held by MIL and balance 80% will be held by NIL. The collaboration combines Japanese technology with Neogens manufacturing capabilities to produce and commercialise solid LiPF₆ electrolyte salt and other advanced battery materials, strengthening Indias lithium-ion battery supply chain and supporting the growing electric mobility ecosystem.

World-Class Manufacturing Infrastructure

Neogen Chemicals operates four manufacturing facilities across four strategic locations in India, namely Mahape (Navi Mumbai, Maharashtra), Karakhadi (Vadodara, Gujarat), Dahej SEZ (Bharuch, Gujarat) and Patancheru (Hyderabad, Telangana). Following the merger of BuLi Chemicals India Private Limited in January 2025, the Patancheru facility strengthened the Companys organolithium capabilities, increasing active organolithium capacity to around 300 MT per annum.

In December 2023, Neogen Ionics, a wholly owned subsidiary of Neogen Chemicals Limited acquired 65 acres of land in Pakhajan, Dahej PCPIR, Gujarat dedicated for projects related to battery materials where construction has significantly progressed and expected to start during F.Y. 2026-27 Neogen Ionics Limited has also started one of the earliest LIB electrolyte facility at Dahej SEZ site in April 2024.

The Mahape facility, operational since 1991, remains fully utilised, while the Vadodara facility operational since 2017 has around 20% land utilisation, providing scope for future greenfield/brownfield expansion. The Dahej SEZ facility, commissioned in 2020, serves as a high-specification manufacturing hub for advanced intermediates and export- oriented products.

Expansion in Advanced Battery Materials

Neogen Chemicals, through its wholly owned subsidiary Neogen Ionics Limited, established its presence in Indias lithium-ion battery materials segment in 2023. The Company commissioned a 2,000 MTPA electrolyte manufacturing and 200 MTPA capacity for lithium electrolyte salts and additives at its Dahej SEZ Facility in F.Y. 2024-25 and commenced commercial dispatches, while another 1,300 MTPA capacity for manufacturing lithium electrolyte salts and additives is under trial production. The Company is setting up an additional greenfield capacity of 1,000 MTPA for manufacturing lithium electrolyte salts and additives at its Dahej SEZ facility which is to be commissioned by H2 F.Y. 2026-27 It is also developing an integrated greenfield battery materials project at Pakhajan in the Dahej PCPIR, spread across approximately 264,285 square metres, with planned capacities of 30,000 MTPA for electrolytes and 3,000 MTPA for lithium electrolyte salts. Upon completion, combined capacities at Dahej and Pakhajan are expected to reach around 32,000 MTPA for electrolytes and 5,500 MTPA for lithium electrolyte salts and additives, supported by technology collaborations with MU Ionic Solutions and Morita Investment Limited.

For further details on manufacturing capabilities, please refer to page 40

KEY DEVELOPMENTS

1. Strategic Indo-Japan Joint Venture

Neogen Ionics Limited (NIL) entered into a strategic joint venture with Morita Investment Limited (Japan) in April 2025 for the production and global commercialisation of lithium hexafluorophosphate (LiPF6) electrolyte salt. The new entity, Neogen Morita New Materials Limited, will be held 80% by Neogen Ionics and 20% by Morita, with equity infusion of USD 20 million from Morita-a Japanese JV partner. The collaboration integrates proven Japanese technology with Neogen Chemicals manufacturing capabilities to enable efficiency improvements and stronger access to global markets.

2. Dahej Site Replacement Plant MPP5

Following the fire, Neogen Chemicals is rebuilding its Dahej facility into a larger, more technologically advanced manufacturing plant. The rebuilt facility will have stronger safety systems and greater scalability to support both specialty chemicals and battery materials. The plant is expected to enhance long-term operational resilience and provide capacity flexibility. As the facility is set to commission in H1 F.Y. 2026-27, the Company has maintained business continuity through production at alternate sites and selective outsourcing, ensuring uninterrupted supply to customers and continuity of its specialty chemicals and Contract Development and Manufacturing Organisation (CDMO) operations.

3. Planned Integrated Capacity Expansion

The Company is executing a coordinated capacity expansion programme across Dahej, Pakhajan, and Patancheru Plant to strengthen backward integration, improve operating leverage and scale high-value chemistries. The Dahej replacement facility is central to restoring in-house production and reducing reliance on toll manufacturing, thereby improving cost structure and freeing capacity for CDMO and specialty chemical growth. In parallel, Neogen Ionics is developing a 30,000 MT per annum electrolyte platform with 5,500 MT of lithium electrolyte salts and additives across Dahej and Pakhajan Facility,aligned with demand visibility from domestic giga-factories and global customers. Mahape and Karakhadi continue to function as flexible manufacturing bases, enhancing CDMO and advanced intermediates, ensuring continuity of supply and steady utilisation during the transition phase.

4. Strong Sustainability Drive

The Company embeds sustainability as a core design principle across its manufacturing and growth strategy by advancing cleaner chemistries, improving process efficiency and strengthening operational safety standards across facilities. Across new and rebuilt assets, including Dahej and Pakhajan, the focus remains on energy-efficient design, safer operations and reduced environmental intensity through integrated production, while aligning with evolving global ESG expectations and regulatory frameworks.

5. Progress of Pakhajan Greenfield Battery Materials Project

The Pakhajan greenfield project progressed steadily, with key equipment installed and commencement of mechanical commissioning activities. The Company targets producing Electrolyte in H1 F.Y. 2026-27, with lithium electrolyte salts planned for phased commissioning thereafter by H2 F.Y. 2026-27 The project is aligned with rising demand from ACC battery manufacturing ecosystems and global non-FEOC-compliant supply requirements. The Company completed Production Part Approval Process (PPAP) requirements and secured long-term commercial approval for electrolytes from a major Indian giga-scale customer. Provisional approvals for lithium electrolyte salts were received in parallel from international customers, with final audits completed for multiple overseas electrolyte makers and now awaiting final clearance for approvals which will help to transition from provisional to commercial-ready status by end of H1 F.Y. 2026-27

6. Expanding Global Footprint

Neogen Chemicals is actively expanding its global footprint by strengthening its positioning in international markets through structured customer approval processes for lithium salts and electrolytes. A key milestone during the period was securing long-term supply approval from a leading Indian giga-scale battery manufacturer, along with provisional approvals from multiple international customers, subject to final site audits.

FINANCIAL PERFORMANCE Standalone

In F.Y. 2025-26, Neogen Chemicals reported revenue of 855.5 Crore, compared with 773.7 Crore in F.Y. 2024-25, driven by improved volumes across organic and inorganic chemical businesses, new customer additions and an improved product mix. EBITDA increased to 151.3 Crore from 1471 Crore, supported by operational efficiencies, higher volumes and cost optimisation, while EBITDA margin stood at 177% compared with 19.0% in the previous year. Profit after tax stood at 47 Crore against 48.4 Crore in F.Y. 2024-25, impacted by ramp- up costs in battery materials and higher finance costs due to ongoing capex. The Companys net worth increased to 853.8

Crore as of March 31,2026, from 808.9 Crore as of March 31, 2025, with net fixed assets at 230.8 Crore and cash and cash equivalents at 3.0 Crore. Liquidity was supported by insurance inflows, expected recoveries, joint-venture funding and promoter support, while the Board approved a preferential equity issuance to the promoter group to support long-term growth initiatives. The Company continued to maintain a structured repayment schedule for project-related debt at Dahej and Pakhajan, aligning financial obligations with commissioning timelines.

Consolidated

Neogen Chemicals delivered a resilient performance in F.Y. 2025-26 despite operational challenges related to the transition of the Dahej facility, elevated input costs and supply chain disruptions. Revenue increased 10.9% to 862.0 Crore from 7776 Crore, supported by healthy demand, higher volumes and sustained plant utilisation, while Neogen Ionics contributed 13 Crore during the fourth quarter. EBITDA remained stable at 1373 Crore compared with 136.3 Crore in F.Y. 2024-25, although EBITDA margin moderated to 15.9% from 175% due to expansion overheads and transition-related costs. Profit after tax stood at 28.8 Crore compared with 34.8 Crore in the previous year, while EPS declined to 10.9 from 13.2, primarily due to higher finance costs associated with expansion projects. The Board recommended a final dividend of 1 per equity share for F.Y. 2025-26, subject to shareholder approval.

Significant Changes in Key Financial Ratios (Standalone)

Key Ratios	Numerator/Denominator	F.Y. 2025-26	F.Y. 2024-25	% Change
Operating Profit ( in Crore)	EBITDA + Other Income	16708	156.89	6.50%
Operating Profit Margin (in %)	Operating Profit / Revenue from Operations	19.53%	20.28%	(3.69)%
PAT ( in Crore)	PBT - Tax	46.96	48.41	(2.98)%
PAT Margin (in %)	PAT / Revenue from Operations	5.49%	6.26%	(12.26)%
Current Ratio	Current Assets / Current Liabilities	1.26	1.51	(16.56)%
Inventory Turnover	Revenue from Operations / Average Inventory	1.99	2.25	(11.56)%
Debt-to-Equity Ratio	(Long-term Debt + Short-term Borrowings) / (Equity Share Capital + Other Equity)	0.79	0.55	43.63%
Interest Coverage Ratio	EBIT / Finance Cost	1.78	2.56	(30.47)%
Debtors Turnover Ratio	Revenue from Operations / Average Debtors	3.08	3.21	(4.05)%
Return on Net Worth (in %)	PAT / (Equity Share Capital + Other Equity)	5.50%	5.98%	(8.03)%

Reason for more than 25% change - Dahej facility reconstruction, Neogen Ionics expansion, battery materials capex, higher finance costs and transition-related expenses.

BUSINESS OUTLOOK

Neogen Chemicals medium-term outlook remains positive, supported by steady demand in its core specialty chemicals business and the expansion of its battery materials portfolio. The Company continues to witness healthy opportunities across key end-user industries, including pharmaceuticals, flavours and fragrances, semiconductors and agrochemicals. The gradual stabilisation of operations at the Dahej facility following reconstruction activities is expected to improve operational efficiency and support growth in the core business.

The battery materials segment is expected to emerge as a significant growth driver, led by capacity expansion at the Pakhajan facility and increasing customer engagements. The strategic joint venture with Morita Investment Limited is expected to strengthen the Companys capabilities in advanced battery materials by enabling access to established Japanese technology for manufacturing lithium hexafluorophosphate (LiPF6) electrolyte salt and expanding its reach among global customers.

In the near term, the Companys performance may be influenced by transition-related costs, capacity ramp-up and customer qualification timelines. However, the commissioning and stabilisation of new facilities, along with the conversion of approvals into commercial supplies, are expected to enhance scale, product capabilities and profitability over the medium term. The Company remains focused on strengthening its position as a reliable supplier in global specialty chemicals and battery material value chains through capacity expansion, technology partnerships and operational excellence.

RESEARCH AND DEVELOPMENT

Innovation is an important part of Neogen Chemicals growth. The Company operates two R&D centres in Mahape and Vadodara, where it focusses on developing new processes and improving existing technologies. Neogen Chemicals has a dedicated R&D team of 123 members, including 11 Ph.D. holders, who bring strong knowledge and research capabilities. The Company continues to strengthen its R&D efforts, recognising its role in enhancing future growth and maintaining competitiveness.

Neogen Chemicals maintains consistent product quality by conducting detailed testing to ensure all products meet high standards and customer expectations. The Companys manufacturing facilities comply with all applicable regulations and certifications, while robust quality control systems ensure careful monitoring at every stage of the production process. Neogens Laboratories is equipped with advanced analytical instruments, enabling accurate testing and ensuring reliable performance. Approvals received from several domestic and international customers reflect their continued confidence in Neogen Chemicals quality standards and product reliability.

For further details, please refer to page 41 and 48

QUALITY CONTROL AND ASSURANCE

Neogen Chemicals maintains a robust quality management system supported by a dedicated team of 76 quality professionals, advanced analytical laboratories and documentation practices aligned with ICH Q7A guidelines to ensure product consistency, safety and regulatory compliance. The Company follows stringent quality checks from raw material inspection to final product dispatch, with all manufacturing facilities certified to ISO 9001:2015 and other ISO certifications as mentioned below:

Site	Certifications
Mahape, Navi Mumbai, Maharashtra	ISO 9001:2015, ISO 26000:2010, ISO 31000:2018, ISO 37001:2016, from Bureau Veritas
Karakhadi, Vadodara, Gujarat	ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 26000:2010, ISO 31000:2018, ISO 37001:2016, from Bureau Veritas
Dahej SEZ, Bharuch, Gujarat*	ISO 9001:2015, ISO 14001:2015, ISO 45001: 2018, ISO 26000:2010 ISO 31000:2018, ISO 37001:2016, ISO 20400:2017, from Bureau Veritas and also, GMP (Good Manufacturing Practices) certified by SGS
Patancheru, Hyderabad, Telangana	ISO 9001:2015, ISO 14001: 2015, ISO 45001: 2018, from Bureau Veritas
Thane Corporate Office	ISO 20400:2017 ISO 26000:2010, ISO 31000:2018 and ISO 37001:2016 from Bureau Veritas

reflecting Neogens commitment to global quality, environmental and safety standards.

ENVIRONMENT, HEALTH AND SAFETY (EHS)

Neogen Chemicals integrates responsible chemistry and environmental stewardship across its operations while maintaining a strong focus on workplace safety and sustainable business practices. The Company remains committed to protecting the environment, ensuring employee well-being and maintaining operational continuity through robust Environmental, Health and Safety (EHS) systems and continuous monitoring.

Incorporating key lessons from the March 2025 fire incident at the Dahej facility, the rebuilt facility is expected to support, alongside global best practices, a safer, more resilient, and fully compliant operating environment. Due to the timely response of the emergency teams, there were no casualties or injuries. Apropos the incident, the Company undertook a comprehensive reconstruction approach with a strong focus on Environment, Health and Safety (EHS), regulatory compliance and operational resilience. The replacement plant is now being rebuilt with enhanced safety systems, improved process design and stronger operational controls to reduce future risks and improve reliability. During the transition phase, the Company maintained customer supply through carefully managed toll manufacturing arrangements. This required prudent inventory planning, while prioritising safe, controlled operations.

For further details, please refer to page 63

HUMAN RESOURCE (HR) DEVELOPMENT

Neogen Chemicals continued to strengthen its human capital by focusing on talent development, employee engagement, leadership capability and employee well-being. As of F.Y. 202526, the Company had 905 employees and a contract workforce of 309, while maintaining a Lost Time Injury Frequency Rate (LTIFR) of 0. During the year, it launched Pragati, a longterm employee growth and empowerment programme and continued leadership and capability-building initiatives such as the Train the Trainer Programme and Neogen Way. The Company also enhanced employee well-being through healthcare, transportation and engagement initiatives, while aligning its human capital practices with globally recognised standards, thereby reinforcing its commitment to a safe, inclusive and high-performance workplace.

For further details, please refer to page 50

RISK MANAGEMENT FRAMEWORK

Neogen Chemicals considers risk management a vital part of its strategic planning. Given the complexities of the global chemical industry, the Company follows a clear and structured framework to proactively identify potential risks and put in place targeted mitigation plans. Each plan is assigned to specific individuals with defined timelines, ensuring accountability and easy progress tracking, while regular monitoring and periodic reviews help the Company assess the effectiveness of these measures and remain prepared for emerging challenges. Guided by a practical, forward-looking approach, this framework is designed to reduce the impact of identified risks, enable timely responses and build the Companys overall resilience in managing uncertainty across its operations.

For further details, please refer to page 30

INTERNAL CONTROLS

Neogen Chemicals follows recognised financial and accounting standards, supported by a robust internal audit framework and risk management practices across corporate and plant operations. The Audit Committee oversees this framework through quarterly reviews of reports prepared by the Independent Internal Auditor under a risk-based audit plan, followed by review by the Statutory Auditors. The Company has established strong internal controls over financial reporting to enhance operational efficiency, safeguard assets, minimise risks, ensure accurate financial records and support timely reporting. During F.Y. 2025-26, the evaluation of these controls identified no material weaknesses or significant issues, reflecting the Companys focus on financial discipline, transparency and accountability.

CAUTIONARY STATEMENT

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events and relate to matters such as business growth strategy, financial performance, product potential and development plans. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. The Company undertakes no obligation to publicly update, amend, modify, or revise any forward-looking statements based on subsequent developments, information, or events.