Neogen’s first-half capex payment reached Rs 419.64 crore

Neogen Chemicals Limited paid Rs 419.64 crore to acquire property, plant and equipment in the half year ended September 30, 2026, while consolidated capital work-in-progress reached Rs 1,187.12 crore. Neogen financed negative operating and investing cash flows through Rs 741.45 crore of share-issue proceeds and borrowing inflows.

How much did Neogen spend on capital expenditure?

Neogen paid Rs 419.64 crore for acquisition of property, plant and equipment in the half year ended September 30, 2026. That outflow was Rs 248.80 crore above the Rs 170.84 crore paid in the corresponding half year ended September 30, 2025.

Net cash used in investing activities was Rs 389.50 crore in the latest half year, compared with Rs 113.35 crore used a year earlier. Property, plant and equipment payments were partly offset by Rs 17.44 crore of insurance-claim receipts, including scrap sales, Rs 9.27 crore from fixed deposits on a net basis, and Rs 3.43 crore of interest received.

Neogen reports specialty chemicals and battery chemicals as one operating and reportable segment under Indian Accounting Standard 108. The filing therefore does not split the Rs 419.64 crore property, plant and equipment payment between the specialty chemicals and battery chemicals businesses, sites or projects.

How did Neogen’s project assets change by September 2026?

Neogen’s consolidated capital work-in-progress was Rs 1,187.12 crore at September 30, 2026, an increase of Rs 330.00 crore from Rs 857.12 crore at March 31, 2026. The capital work-in-progress balance exceeded the group’s Rs 546.16 crore carrying value for property, plant and equipment at September 30.

Property, plant and equipment increased by Rs 136.02 crore during the six months, to Rs 546.16 crore from Rs 410.14 crore. Right-of-use assets rose by Rs 15.45 crore to Rs 79.47 crore, while total non-current assets increased by Rs 494.87 crore to Rs 2,004.23 crore.

The Rs 330.00 crore increase in capital work-in-progress was greater than the Rs 136.02 crore increase in recognised property, plant and equipment. Together, the two balance-sheet lines totalled Rs 1,733.28 crore at September 30, 2026, compared with Rs 1,267.26 crore at March 31, 2026.

Why was Neogen’s operating cash flow negative?

Neogen used Rs 126.84 crore in operating activities in the half year ended September 30, 2026, despite reporting profit before tax of Rs 36.00 crore. The operating cash outflow was lower than the Rs 246.11 crore outflow in the half year ended September 30, 2025.

Inventories increased by Rs 184.38 crore, compared with an increase of Rs 128.04 crore in the prior-year half. This was the largest identified working-capital cash use in the latest period, although a Rs 74.55 crore decrease in trade and other receivables released cash after an Rs 80.24 crore cash use a year earlier.

Operating profit before working-capital changes increased to Rs 96.63 crore from Rs 67.17 crore. Changes in other current assets used Rs 54.19 crore, other non-current assets used Rs 30.10 crore, and other current liabilities decreased by Rs 92.10 crore; after Rs 12.74 crore of net income-tax payments, operating cash flow was negative Rs 126.84 crore.

How did Neogen finance its investment and cash requirements?

Neogen generated Rs 955.86 crore of net financing cash inflow in the half year ended September 30, 2026, compared with Rs 466.28 crore in the prior-year half. The financing cash flow included Rs 741.45 crore from share issues net of expenses and Rs 76.80 crore advanced against a share issuance in a step-down subsidiary.

The cash-flow statement identifies Rs 161.00 crore from a preferential issue and Rs 580.45 crore from a qualified institutions placement, or QIP, within share-issue proceeds. Neogen said its QIP, completed on September 16, 2026, raised gross proceeds of Rs 600.00 crore and net proceeds of Rs 580.00 crore after Rs 20.00 crore of issue-related expenses.

Neogen said the QIP proceeds were proposed for repayment or prepayment of certain borrowings, long-term working-capital requirements and general corporate purposes. It disclosed that Rs 230.35 crore had been utilised during the quarter and Rs 349.65 crore remained unutilised at September 30, 2026.

Borrowings generated Rs 351.77 crore of cash inflows and repayments used Rs 119.86 crore, resulting in a net borrowing cash inflow of Rs 231.91 crore before non-cash changes. Balance-sheet borrowings totalled Rs 1,559.65 crore at September 30, comprising Rs 859.32 crore of non-current borrowings and Rs 700.33 crore of current borrowings, compared with Rs 1,329.89 crore at March 31.

Financing cash flow also included Rs 78.08 crore of finance-cost payments, Rs 10.46 crore of lease-liability payments, Rs 3.02 crore spent on treasury shares for employee stock-option purposes, and Rs 2.74 crore of dividends. Combined operating, investing and financing cash movements increased cash and cash equivalents to Rs 444.46 crore at September 30, 2026 from Rs 4.94 crore at March 31, 2026.

Conclusion

Neogen’s half-year statements record Rs 419.64 crore of payments for property, plant and equipment and a Rs 330.00 crore increase in capital work-in-progress. Operating cash flow remained negative Rs 126.84 crore, with the Rs 184.38 crore inventory increase the largest disclosed working-capital use, while share issues and borrowings supplied financing inflows.

The next disclosed item to watch is the use of Rs 349.65 crore of QIP proceeds that remained unutilised at September 30, 2026, against the stated purposes of debt repayment, long-term working capital and general corporate purposes. Neogen also disclosed that the insurer approved an additional Rs 152.00 crore for release in due course as part payment of its fire-related claim.