Neochem Bio Solutions Ltd. (NEOCHEM)
SME CapPharma stocks · SME cap · NSE
Neochem Bio Solutions Limited manufactures specialty performance chemicals for industries including Textile, Home & Personal Care, Industrial Cleaners, Water Treatment, Paints & Coatings, Paper & Pulp, Construction, Rubber, and Dyes & Pigments. It offers 350+ customized formulations, has 22k MTPA ISO-certified capacity, and serves 225+ domestic customers across 12 countries.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹65 Cr | NDF | +38.3% |
| EBITDA | ₹11 Cr | +37.5% | +37.5% |
| Operating margin | 17.0% | +0 bps | +0 bps |
| PAT | ₹7 Cr | NDF | +16.7% |
| PAT margin | 10.8% | -200 bps | -200 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Neochem Bio Solutions reported robust FY26 performance with revenue up 32% YoY to INR 110.7 Cr, EBITDA up 53% YoY to INR 22.6 Cr, and PAT up 62% YoY to INR 12.0 Cr, driven by strong operational leverage and margin expansion.
The company demonstrated strong financial growth in FY26, with significant revenue and profit increases, coupled with expanding EBITDA and PAT margins. Strategic diversification into new end-user industries and a focus on sustainable, bio-based solutions position it well for continued growth, despite the inherent cyclicality of some end-markets.
Revenue Split (%) - FY26
Latest issuer-disclosed distribution across 2 reported categories.
China+1 Strategy
Rising costs and stricter environmental rules in China are pushing global buyers to source specialty chemicals from India.
Sustainability-Driven Demand
Stricter environmental rules and rising demand for clean, eco-friendly products are boosting India's green and bio-based chemicals industry.
Adjacent Market Opportunities
Core chemistry capabilities extend into home and personal care, industrial cleaning, and water treatment, widening growth potential.
New Product Offerings
Introduced new solutions like FabBrite 9000 for integrated pretreatment and Ampinol RDP-CW for accelerated textile washing.
Installed Manufacturing Capacity
The company has an installed manufacturing capacity of 22,000 MTPA at its Ahmedabad facility.
Capacity Utilization Ramp-up
Capacity utilization increased from 24.6% in FY23 to 52.7% in FY26.
Global Supply Chain Shift (China+1)
Rising costs and environmental regulations in China are driving global buyers to source specialty chemicals from India.
Sustainability Demand
Stricter environmental rules and demand for clean, eco-friendly products are boosting India's green and bio-based chemicals industry.
Rising Consumer Spending
Increasing incomes, urbanization, and fashion consciousness are boosting demand for higher-value dyeing, finishing, and processing chemicals.
Increased Chemical Usage in Textiles
Growth in man-made fibers and technical textiles is increasing the amount of specialty chemicals used per unit of fabric.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Full fiscal year data and H2 data are provided, making YoY the most consistent comparison for assessing annual performance and growth trends in a specialty chemicals business, which is driven by annual capacity and market growth.
EBITDA Margin
EBITDA margin increased to 20.4% in FY26, up 321 bps from 17.2% in FY25.
PAT Margin
PAT margin improved to 10.6% in FY26, up 197 bps from 8.6% in FY25.
Capacity Utilization
Capacity utilization reached 52.7% in FY26, up from 41.8% in FY25 and 35.0% in FY24.
Export Revenue Contribution
Exports contributed 5% to total revenue in FY26.
Diversifying End Users
Leveraging strategic collaborations, such as a Netherlands tie-up for fluorine-free, bio-based repellents, to enter specialty biobased coatings for textiles and construction.
Sustainable Product Development
Advancing bio-based alternatives like vegan ester quats and phosphate-free chelating agents to lower environmental impact and meet sustainability norms.
Geographical Expansion
Expanding across Asia, Oceania, Southeast and Central Asia, and select African and Middle Eastern markets, with tailored products and localized partnerships.
Strengthening End-User Presence
Diversifying product applications to reduce single-segment concentration risk; Home & Personal Care contribution grew to 14.21% by Sept 2025.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Capacity Utilization | 52.7% (FY26) | Continued ramp-up towards optimal utilization levels to drive operational leverage. |
| Export Revenue Contribution | 5% (FY26) | Growth in international presence and increasing share of export revenue. |
| Home & Personal Care Contribution | 14.21% (Sept 2025) | Further diversification away from textile dependence and growth in new end-user segments. |
| New Product Acceptance | Several new products launched | Market acceptance and revenue contribution from new bio-based and efficiency solutions. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
63BullishSMA20 +4.4% / mo · MACD + · sector +2.2pp vs Nifty (3M)
Technical chart
NEOCHEMdaily · 1Y · AUTO+19.1%Daily history is available from 2025-12-09; the requested 1Y window is partially covered.
Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 50. Wait for confirmation.
- SMA20 rising (~4.2% over last month) — short-term momentum positive.
- RSI(14) at 50 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 21% off 52W high · 51% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 61 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 61 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Fair-value margin of safety is positive at 81.8%.
- Quality contributes 19/20 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Balance sheet is weaker at 3/15; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 46th percentile within Pharma. Main check: cash conversion is weak at 53/100.
Healthy Trust Lite: Promoter holding is 66.7%. Key concern: Only 1 years of positive FCF.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Pharma: 46th pctile, median 70 · SME: 77th pctile, median 64
4 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 66.7%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.6%.
- ▸ROCE is 27.2%.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸Debt/equity is 1.80.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 21.20
- P/B
- —
- EV/EBITDA
- 13.75
- Market Cap
- 163.00Cr
Profitability
- ROE
- 48.40%
- ROCE
- 27.20%
- ROA
- 9.82%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 32.16%
- EPS 5Y
- 169.13%
- Revenue 3Y
- 31.00%
- EPS 3Y
- 31.00%
Balance Sheet
- Debt/Equity
- 1.80
- Interest Coverage
- 3.74×
- Altman Z
- 3.59
- Book Value
- —
Cash Flow
- FCF Yield
- 0.55%
- FCF Positive Y
- 1/5
- OCF
- 2.59 Cr
- EPS TTM
- 11.61
Shareholding
- Promoter Hold
- 66.72%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 56%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.