“…we would like to further inform that the company has received an additional amount of Rs 15 crore towards the fourth on account payment for loss of property, plant and equipment from the insurance company yesterday, i.e. July
16, 2026, based on the recommendation given by the surveyors in their interim report,” according to a stock exchange filing.
The payment was released on July 16, 2026, based on the recommendation of surveyors in their interim report. With this payment, the company’s total on-account insurance claim received to date stands at ₹155 crore.
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The company said the final settlement will be determined in various stages after completion of assessment for losses related to property, plant and equipment, other assets at the Dahej SEZ plant, loss of profit due to business interruption and reinstatement value of assets.
Neogen Chemicals said it has recognised a loss of ₹348.16 crore on account of damage to certain property, plant and equipment, inventory and estimated incidental charges. On a consolidated basis, the recognised loss stood at ₹362.90 crore.
The company has recognised an insurance claim receivable of ₹334.60 crore to the extent of recovery of loss after adjusting applicable deductibility, considering assessment of loss, admissibility of claims under the policy, adequacy of coverage and nature of loss. On a consolidated basis, the insurance claim receivable stood at ₹348.82 crore.
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The company has not accounted for claims related to loss of profit due to business interruption and excess value of reinstatement of assets over written-down value. The losses and corresponding insurance claims were considered on a net basis at ₹13.56 crore for FY 2024-25, or ₹14.08 crore on a consolidated basis.
Neogen Chemicals said it has received ₹9.38 crore from the sale of salvaged scrap to date and incurred further incidental charges of ₹1.41 crore, which have also been claimed under the insurance policy.
The production and operations of the affected MPP3 facility, warehouse and tank farms remain temporarily suspended. The company said construction of the replacement plant is progressing, with commissioning scheduled for the first half of FY27.
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“In the interim, the company has shifted production of critical select specialty products to other sites based on approval from customers. This, combined with the planned expansion in Patancheru Plant, will help minimise the impact on earnings going ahead to minimise business disruption,” it added.
Shares of Neogen Chemicals Ltd ended at ₹2,152.00, down by ₹170.35, or 7.34%, on the BSE.
