Neuland Laboratories (524558) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 total income reached INR 447.8 crore, up 11.4% year-over-year, with commercial CMS projects contributing over 50% of revenue; EBITDA margin was subdued due to product mix and higher operating expenses.

• Business momentum remains strong, with investments in NCE drug substance manufacturing and a ramp-up phase for new CMS molecules and capacity expansions.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on February 9, 2026, covering both standalone and consolidated financials.

• Results include wholly owned subsidiaries in the USA and Japan, with consolidated Q3 FY26 net profit at ₹4,057.19 lakhs and EPS at ₹31.62.

• The business is experiencing a ramp-up phase, with new CMS molecules commercialized and capacity expansions underway.

Financial highlights

• Q3 FY26 total income: INR 447.8 crore, up 11.4% YoY; 9MFY26 total income: INR 1,264.4 crore, up 8.9% YoY.

• Consolidated Q3 FY26 revenue was ₹43,970.93 lakhs, up from ₹39,803.18 lakhs in Q3 FY25; net profit was ₹4,057.19 lakhs.

• Gross margin for Q3 FY26 was 52.1%, down from 53.2% in Q3 FY25; nine-month gross margin maintained at 56% versus 55% last year.

• EBITDA for Q3 FY26 was INR 85 crore (19% margin), with adjusted EBITDA at INR 95 crore (21% margin) excluding one-time labor costs.

• Net debt at Q3 FY26 end: INR -202.6 crore, improved from INR -185.1 crore at Q3 FY25 end.

Outlook and guidance

• Management expects FY26 to be a growth year, with optimism for the future based on the current commercial base and ramp-up of new products.

• Continued investments in R&D and capacity to capture growth opportunities in high-value segments; peptide facility commissioning in July, with commercial manufacturing targeted for FY27.

• Board approved R&D move to a new leased facility, with INR 254 crore capex in 9MFY26.

• Management emphasizes a medium- to long-term view due to the inherent lumpiness and long gestation periods in the CDMO and specialty businesses.

• New Indian labour codes effective November 21, 2025, have no material incremental impact.