Neuland Laboratories (524558) Q4 25/26 earnings summary

Executive summary

• Q4 FY 2026 total income rose 134.9% year-over-year to INR 788.7 crore, driven by commercial CMS projects contributing over two-thirds of revenue.

• FY 2026 revenue grew 37% to INR 2,053.1 crore, with EBITDA margin improving to 29.4% from 22.9% last year.

• Profit after tax for Q4 was INR 212.5 crore (vs INR 27.7 crore YoY); full-year PAT reached INR 363.1 crore.

• Investments in peptide manufacturing and a new R&D center are progressing as planned, supporting future growth.

• Audited standalone and consolidated financial results for FY 2026 were approved with an unmodified audit opinion; a final dividend of ₹34 per share was recommended.

Financial highlights

• Q4 gross margin improved to 62.1% from 56.3% YoY, aided by business mix and despite higher freight costs.

• Q4 EBITDA was INR 319.4 crore (margin 40%+), reflecting record revenue and revenue lumpiness.

• EPS for Q4 was INR 165.6; full-year EPS was INR 283.01.

• Free cash flow for FY 2026 was negative INR 49.4 crore due to higher working capital and CapEx.

• Net debt at FY26 end stood at Rs. (156.8) crore, compared to Rs. (228.7) crore at FY25 end.

Outlook and guidance

• Management expects continued lumpy growth but maintains confidence in long-term prospects, targeting 18%-20% CAGR over a 5-year horizon.

• Growth visibility for the next 2-3 years is anchored by commercial and near-commercial molecules.

• Margins are expected to moderate as capital deployment cycles lengthen, but ROC remains healthy.

• Capacity at Unit 1 (Bonthapally) to be enhanced by 120.5 KL over 12–18 months, with an investment of ₹143.4 crores.