Neuland Laboratories (524558) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 softened versus recent trends, while H1 FY27 remained broadly in line with expectations; uneven revenue timing and product mix drove quarterly variability.

• Commercial CMS molecules are the near-term growth driver; management maintained FY27 and FY28 growth expectations without giving numerical guidance.

Financial highlights

• Standalone Q2 total income was ₹457.2 crore, down 11.4% YoY; EBITDA was ₹104.6 crore, down 33.4%, and PAT was ₹51.1 crore, down 47.0%.

• Standalone H1 total income was ₹1,107.2 crore, up 35.6% YoY; EBITDA rose 68.6% to ₹335.6 crore and PAT rose 80.2% to ₹198.5 crore.

• Consolidated Q2 revenue from operations was ₹44,965.69 lakh versus ₹51,427.31 lakh a year earlier; H1 revenue was ₹1,09,123.40 lakh versus ₹80,702.58 lakh.

• Consolidated PAT was ₹5,162.50 lakh in Q2 and ₹19,929.81 lakh in H1; H1 PBT was ₹26,682.52 lakh versus ₹14,700.69 lakh in H1 FY26.

• Q2 EBITDA margin was 22.9% versus 30.4%; gross margin was 59.4% versus 60.1%.

Outlook and guidance

• Growth expectations remain intact for FY27 and FY28, with no numerical range provided; new CMS project orders are expected to be delivered over the current and following financial years.

• Peptide PPQ-related revenue is expected to begin in 6–9 months; commercial revenue was described as a reasonable expectation 1.5–2 years out.

• Specialty revenue is expected to improve by Q4 if customer manufacturing issues resolve; Ezetimibe is expected to drive Prime segment growth.

• More commercial launches are expected over the next 1–2 years; no launches occurred in the prior 2–3 quarters.