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Neuland Laboratories Ltd
NSE: NEULANDLAB BSE: 524558 INE794A01010 Healthcare Pharma 🔎 Screen
NIFTY 500 Smallcap 50 Smallcap 100 Smallcap 250
₹29,323 Cr
Market Cap
58.9
P/E
1.93
PEG
26.5%
ROCE
21.2%
ROE
0.16
D/E
30.8%
OPM
-2.7%
% from 52W High
96
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Neuland Laboratories is engaged in manufacturing and selling of bulk drugs and caters to both domestic and international markets.

✓ Strengths 2
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 38.5% CAGR over last 5 years
! Concerns 2
  • Stock is trading at 15.6 times its book value
  • Promoter holding has decreased over last 3 years: -3.41%
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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In-line — revenue doubled YoY but declined sharply QoQ; CMS commercial supply drove the growth. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹650.1 Cr
+116.3% YoY; -17.6% QoQ vs ₹788.7 Cr
EBITDA Margin
35.5%
+2,150 bps YoY; -500 bps QoQ from 40.5%
PAT
₹147.4 Cr
+975.0% YoY; -30.6% QoQ vs ₹212.5 Cr
Net Debt
₹(308.5) Cr
Net cash; improved from ₹(156.8) Cr in Q4FY26
What Went Right
  • Revenue more than doubled YoY to ₹650.1 Cr; CMS mix rose to ~67% of revenue from ~44% in Q1FY26, driven by commercial molecules.
  • EBITDA margin expanded 2,150 bps YoY to 35.5%; PAT jumped 975% YoY to ₹147.4 Cr, EPS ₹114.9.
  • Working capital days fell to 84 from 137 in Q4FY26 on lower receivables; net cash rose to ₹308.5 Cr from ₹156.8 Cr in Q4FY26.
  • Active CMS projects rose to 99 from 98 YoY, with development projects at 80 vs 79; management cited stronger order pipeline and capability-led customer conversations.
  • GDS momentum was supported by Ezetimibe and Mirtazapine in Prime and Aripiprazole Sterile, Donepezil, and Apixaban in Specialty.
What to Watch
  • Revenue fell 17.6% QoQ to ₹650.1 Cr and PAT fell 30.6% QoQ to ₹147.4 Cr, showing clear quarterly lumpiness.
  • EBITDA margin contracted 500 bps QoQ to 35.5% from 40.5% in Q4FY26.
  • CMS commercial molecule count was flat at 19 YoY and QoQ; reported growth is from existing commercial supply, not new commercial conversions.
  • Concentration risk remains high: overall top-10 products were 80% of revenue, top-10 customers 77%, and top-5 customers 70%; CMS top-5 customers were 96%.
  • Capex outflow was ₹122 Cr in the quarter, with no quantified full-year investment or payback target disclosed.
Investor Lens
The core thesis is intact: Neuland is converting CMS commercial scale-up and GDS execution into doubling revenue, margin expansion, and a strong net-cash balance sheet. But the sharp QoQ decline and flat commercial project count expose how order-driven and lumpy this business remains. With overall top-10 customers at 77% and CMS top-5 customers at 96%, one delayed customer order can significantly distort quarterly results. Working capital improvement to 84 days from 137 is real but is largely a receivables timing effect. Watch next quarter for pipeline projects converting into commercial orders and for margin sustainability above 30%; without that, the 'in line' commentary will start to look optimistic.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q1 net profit soars 957% YoY to ₹148 Cr; revenue up 119%
Revenue
Revenue jumped 119.1% YoY to ₹642 Cr, though it slipped 17.3% QoQ from the Mar 2026 quarter. The YoY jump reflects strong demand and a favorable base, while the sequential decline signals some quarter-on-quarter moderation.
Profitability
PAT surged 957.1% YoY to ₹148 Cr, with EPS at ₹115.10 against ₹10.83 a year ago. PBT stood at ₹198 Cr after interest of ₹7 Cr and depreciation of ₹27 Cr, with a 25% tax rate.
Margins
OPM expanded sharply to 35% from 12% YoY, but dipped from 40% QoQ. Operating profit grew 555.9% YoY to ₹223 Cr, indicating strong operating leverage despite the QoQ revenue dip.
Cash Flow
No cash flow statement data provided; CFO quality versus PAT cannot be assessed from the available information.
Balance Sheet
Debt-to-equity is low at 0.16, and ROCE of 26.5% with ROE of 21.2% indicates efficient capital use. No absolute debt or reserve figures were provided.
Key Risks
At a PE of 70.44x, the valuation prices in continued high growth. Sequential revenue fell 17.3% and OPM dropped 5 ppt QoQ, suggesting a possible cooling from peak levels. The elevated YoY base may also make future comparisons tougher.
Outlook
Sustained YoY momentum and strong margins support near-term confidence, but the QoQ moderation must be watched. Maintaining OPM near 35% will be key to profitability going forward.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Trend
Europe
122
EBIT 0
India
92
EBIT 0
Rest of the world
34
EBIT 0
USA and North America
192
EBIT 0
Total 440

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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