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Neuland Laboratories Ltd
NSE: NEULANDLAB Healthcare Pharma 🔎 Screen
NIFTY 500 Smallcap 50 Smallcap 100 Smallcap 250
₹11 Cr
Market Cap
58.5
P/E
1.95
PEG
26.6%
ROCE
21.4%
ROE
0.16
D/E
30.0%
OPM
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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 38.7% CAGR over last 5 years
! Concerns

No concerns data yet.

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Strong beat: Revenue surged 134.9% YoY to ₹788.7 Cr and EBITDA margin expanded to 40.5%, driven by commercial CMS scale-up, but net cash declined and working capital remains high at 137 days. quarter Investor Presentation One-Pager Mar 2026
Revenue
₹788.7 Cr
+134.9% YoY
EBITDA Margin
40.5%
+2316 bps YoY
PAT
₹212.5 Cr
+666.3% YoY
Net Debt
-₹156.8 Cr
Improved from -₹228.7 Cr a year ago but net cash decreased ~₹72 Cr from Q3; still net cash
What Went Right
  • CMS commercial revenue reached ₹488 Cr in Q4FY26 (vs ₹247 Cr in Q3FY26), a 97.6% QoQ increase.
  • Overall EBITDA margin of 40.5% in Q4FY26 was the highest in at least the last five years, up from 19.0% in Q3FY26.
  • Working capital days improved to 137 days from 145 days in Q3FY26, driven by inventory reduction.
  • EPS jumped to ₹165.6 in Q4FY26 from ₹21.6 in Q4FY25, a 666% increase.
  • Net debt-to-equity remains negligible at 0.1x, though net absolute cash declined.
What to Watch
  • Net cash position weakened sequentially: net debt of -₹156.8 Cr vs -₹202.6 Cr in Q3FY26, a ~₹46 Cr reduction in cash.
  • Working capital days at 137 remain elevated, and the company has high customer concentration — top 10 customers accounted for 61% of total revenue in Q4FY26.
  • Specialty (GDS) segment remained subdued, primarily due to Paliperidone; overall GDS segment revenue declined sequentially (implied by segment mix shift).
  • Capex outflow was ₹397 Cr in FY26, a significant cash drain that may pressure near-term free cash flow.
Investor Lens
The thesis is intact: Neuland is riding a strong CMS commercial wave, with revenue and margins hitting multi-year highs due to operating leverage. However, the heavy reliance on a concentrated customer base (top 5 CMS customers = 68% of CMS revenue) and the sequential decline in net cash warrant caution. The Q4 spike may not be linear; watch for sustainability of commercial CMS orders and working capital trends. The new peptide facility and R&D centre investments are mediums-term drivers, but near-term cash flows will be tested. Next quarter's revenue trajectory and customer diversification metrics are key to assess if the margin peak is repeatable.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: Revenue +136.6% YoY, Net Profit +660.7% YoY
Revenue
Revenue surged 136.6% YoY to ₹776 Cr, with strong sequential growth of 76.4% from ₹440 Cr in Dec 2025, indicating robust demand.
Profitability
Net profit skyrocketed 660.7% YoY to ₹213 Cr, with EPS rising to ₹165.76 from ₹21.68. PBT margin improved significantly, supported by higher operating profit.
Margins
Operating profit margin expanded sharply to 40% from 16% YoY, driven by strong revenue growth and operating leverage.
Cash Flow
No cash flow data provided for this quarter.
Balance Sheet
Borrowings at ₹265 Cr, reserves at ₹1,607 Cr, and a low debt/equity ratio of 0.16 indicate a healthy balance sheet.
Key Risks
High PE ratio of 127 suggests elevated valuation expectations. Sustainability of 40% OPM depends on continued demand and cost control.
Outlook
Strong momentum may continue if demand persists, but base effects could moderate growth rates. Focus on margin sustainability and working capital management.
Generated by AI · Mar 2026 results · Not investment advice
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