Neuland Laboratories (524558) Q2 25/26 earnings summary

Executive summary

• Q2 FY2026 revenue reached INR 516 crore (₹51,427.31 lakhs), up 63.7% year-over-year, driven by commercial CMS projects and operating leverage.

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

• Profit after tax rose to INR 96.5 crore (₹9,685.39 lakhs) from INR 32 crore in Q2 FY2025; EPS at INR 75.18–75.49.

• CMS (CDMO) business now contributes over half of total revenues, with strong momentum from top commercial molecules.

• Customer engagement and reputation as an agile partner are leading to new and expanded business opportunities, especially in CDMO and generic APIs.

Financial highlights

• Gross margin increased to 60.1% from 56.3% in Q2 FY2025.

• Working capital days at 155 in Q2 FY26, with peak cash flow for the quarter at -INR 141 crore.

• Net debt stands at -INR 6.6 crore, indicating a strong net cash position.

• CapEx for H1 FY26 was INR 170–170.7 crore, mainly for facility expansion and peptide plant.

• H1 FY26 total income was INR 816.7 crore (up 7.5% YoY); EBITDA at INR 199.1 crore; PAT at INR 110.2 crore.

Outlook and guidance

• Management expects FY2026 to be a year of strong growth, with momentum in revenue and margin expansion supported by ongoing investments.

• Commercialization of another CMS molecule anticipated within the year.

• Peptide facility investment progressing as planned, with completion expected next financial year.

• No explicit quarterly guidance provided; growth expected on FY2024 base.