What’s new

• Proprietary brands now drive over 80% of sales after a strategic shift away from white-label work.
• Neochem signed an exclusive deal with Netherlands-based Lamorall for fluorine-free water repellents.
• Management targets ₹250 crore in revenue by FY28 with capacity utilization reaching 85%.

Why it matters

The company's transition from low-margin contract work to branded products is paying off in bottom-line expansion. If the proprietary brand growth holds, the projected jump in scale to ₹250 crore looks achievable through the HPCI and specialty segments.

What we’re watching

• Whether the Lamorall partnership gains commercial traction in the current fiscal year.
• Progress toward the 30-35% export revenue target within three years.
• Actual capacity utilization rates against the 65% FY27-end guidance.

The full read

Neochem Bio Solutions is re-engineering its business model. It is swapping low-margin white-label work for a proprietary brand portfolio that now accounts for 80% of total sales. The shift bore fruit in FY26, with revenue climbing 32% to ₹110.7 crore and PAT jumping 62% to ₹12 crore.

Management is now pointing toward a significantly larger footprint, setting a ₹250 crore revenue goal by FY28. Key to this is an exclusive deal with Lamorall for fluorine-free water repellents and a push into the HPCI market, which currently represents 14% of revenue. The company is also betting on global demand, aggressively eyeing exports to make up as much as 35% of its sales mix within three years. With capacity utilization expected to climb steadily from current levels to reach 85% by the end of FY28, the challenge is maintaining this growth velocity while executing on a complex international expansion strategy.

Primary source: NSE