“…we would like to further inform that the company has received an additional amount of ₹15 crore as the fourth on-account payment for losses related to property, plant, and equipment from the insurance company yesterday, i.e. July
16, 2026, based on the surveyors’ recommendations in their interim report,” stated a filing with the stock exchange.
The payment was released on July 16, 2026, following the recommendations of surveyors outlined in their interim report. With this payment, Neogen’s total on-account insurance claims received to date amount to ₹155 crore.
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The company indicated that the final settlement will be determined in stages after assessing losses related to property, plant and equipment, other assets at the Dahej SEZ plant, loss of profit due to business interruptions, and the reinstatement value of affected assets.
Neogen Chemicals reported a loss of ₹348.16 crore due to damage to specific property, plant and equipment, inventory, and estimated incidental charges. On a consolidated basis, the total recognized loss reached ₹362.90 crore.
The company has recognized an insurance claim receivable of ₹334.60 crore for recovery of losses after considering applicable deductibles, assessment of loss, admissibility of claims under the policy, coverage adequacy, and nature of loss. On a consolidated basis, the insurance claim receivable was ₹348.82 crore.
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Claims related to loss of profit due to business interruption and excess value for the reinstatement of assets over the written-down value have not been accounted for. The losses and corresponding insurance claims were recorded on a net basis at ₹13.56 crore for FY 2024-25, or ₹14.08 crore on a consolidated basis.
Neogen Chemicals has so far received ₹9.38 crore from the sale of salvaged scrap and incurred additional incidental charges of ₹1.41 crore, which are also claimed under the insurance policy.
The production and operations of the affected MPP3 facility, warehouse, and tank farms are currently on hold. The company noted that the construction of a replacement plant is underway, with commissioning expected in the first half of FY27.
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“In the meantime, the company has relocated the production of select critical specialty products to other sites with customer approval. This move, along with the planned expansion in the Patancheru Plant, will help reduce the impact on earnings and minimize business disruption,” it added.
Shares of Neogen Chemicals Ltd closed at ₹2,152.00, decreasing by ₹170.35, or 7.34%, on the BSE.
