Neuland Laboratories (524558) Q2 25/26 earnings summary

Executive summary

• Q2 FY2026 revenue reached INR 516 crore, a 63.7% year-over-year increase, primarily driven by commercial CMS projects and improved operating leverage.

• EBITDA margin improved to 30.4% with EBITDA at INR 156.9 crore, reflecting a favorable business mix and significant YoY growth.

• Profit after tax rose to INR 96.5 crore from INR 32 crore in Q2 FY2025; EPS at INR 75.18.

• Customer engagement remains strong across geographies, with a reputation for agility leading to new and expanded business opportunities, especially in CDMO and generic APIs.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board on November 7, 2025.

Financial highlights

• Q2 FY26 total income was INR 516.1 crore, up 63.7% YoY; EBITDA at INR 156.9 crore, up 138.8% YoY; PAT at INR 96.5 crore, up 201.6% YoY.

• Gross margin for the quarter was 60.1%, up from 56.3% in Q2 FY2025.

• Working capital days stood at 155; net debt at -INR 6.6 crore, indicating a strong net cash position.

• CapEx was INR 91 crore for the quarter and INR 170.7 crore for the first half of the year.

• Basic and diluted EPS for Q2 FY26 was INR 75.49, compared to INR 25.60 in Q2 FY25.

Outlook and guidance

• Management expects FY2026 to be a year of strong growth, with momentum from top CMS molecules and margin expansion likely to continue.

• Commercialization of another molecule is anticipated this year, with new business expected over the next 12-18 months.

• No explicit quarterly guidance provided, but optimism for sustained growth remains.

• The company continues to focus on APIs and allied services as its primary business segment.