India's Battery Revolution: 3 Emerging Chemical Players Power Next-Generation Mobility

Strategic Insights -

As the world transitions to clean energy, India is gearing up to meet its ambitious target of meeting 50% of its energy needs from renewable energy by 2030. The government's initiatives, such as the Production-Based Incentive Scheme and the PM e-Drive Scheme, along with a lower GST rate of 5%, are driving demand for electric vehicles (EVs). CareEdge Ratings estimates that demand for lithium-ion batteries in India will grow rapidly to 54 gigawatt hours (GWh) by FY27 and 127 GWh by FY30. This growing demand for advanced battery technologies is opening up a new growth avenue for chemical companies that supply critical inputs to the battery value chain. Three emerging players, PCBL, Neogen, and Balaji Amines, are quietly building the backbone of India's battery revolution.

Key Takeaways:

  • PCBL Chemicals is expanding into the rapidly growing battery chemicals sector, focusing on next-generation energy materials and conductive solutions. It has developed all three advanced technologies: super-conductive carbon, nano-silicon, and acetyl black for applications in conductive solutions & next-generation batteries.
  • Neogen Chemicals is establishing a large manufacturing facility for battery chemicals in Gujarat, with a total planned capacity of 32,000 metric tons for electrolytes and 5,500 metric tons for lithium electrolyte salts and additives.
  • Balaji Amines is the only manufacturer of electronic-grade Dimethyl Carbonate (DMC) in India, which provides it with a competitive advantage. The company has upgraded its existing DMC plant by integrating advanced equipment specifically for producing Electronic Grade DMC.
  • PCBL has a carbon black production capacity of 7.9 lakh metric tons per year, with plans to expand to 1 million metric ton per year by FY28.
  • Neogen partnered with Japan's MU Ionic, a global leader in lithium electrolyte manufacturing, to strengthen its edge in the supply of high-quality electrolytes.
  • Balaji Amines aims to achieve revenue of Rs 20 billion in the next 2 years from Rs 13.9 billion in FY25.
  • The three players are trading at premium valuations, with PCBL trading at 39.7x, Neogen at 98x, and Balaji Amines at 30x.

Statistics:

  • Demand for lithium-ion batteries in India is expected to grow to 54 GWh by FY27 and 127 GWh by FY30.
  • India currently exports lithium-ion batteries, which are expected to decline to 20% by FY27.
  • PCBL has a revenue of Rs 21.6 billion in Q2FY26, with EBITDA of Rs 2.8 billion and EBITDA margin of 13%.
  • Neogen has a revenue of Rs 1.8 billion in Q1 FY26, with EBITDA of Rs 315 million and EBITDA margin of 16.9%.
  • Balaji Amines has a revenue of Rs 3.6 billion in Q1FY26, with EBITDA of Rs 640 million and EBITDA margin of 17%.

Sources:

  • PCBL Chemicals, Neogen Chemicals, Balaji Amines investor presentations
  • CareEdge Ratings estimates
  • Industry reports and news articles
  • Financial statements of PCBL, Neogen, and Balaji Amines
  • Government initiatives and policies, such as the Production-Based Incentive Scheme and the PM e-Drive Scheme