Neuland Laboratories Q1FY27: Net profit surges 975% YoY to ₹147.4 crore

Neuland Laboratories Limited reported a net profit of ₹147.4 crore for the quarter ended June 30, 2026, marking a 975% surge from ₹13.7 crore in Q1FY26. The Hyderabad-based pharmaceutical manufacturer saw total income rise 116.3% year-on-year (YoY) to ₹650.1 crore, driven by robust performance across its Custom Manufacturing Services (CMS) and Generic Drug Sales (GDS) segments. This significant turnaround underscores the company’s operational leverage as it scales production capabilities, with EBITDA climbing 448.2% to ₹231.1 crore.

The filing, submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlights a sharp expansion in profitability metrics. Profit before tax (PBT) increased 1,036.7% to ₹197.5 crore, demonstrating effective cost management alongside revenue growth. Earnings per share (EPS) stood at ₹114.9, up from ₹10.7 in Q1FY26. While quarterly figures showed a sequential decline due to seasonal variations, the year-on-year comparison reveals substantial growth in underlying business health.

Financial Performance Overview

Particulars	Q1FY27	Q1FY26	YoY (%)	Q4FY26	QoQ (%)
Total Income	650.1	300.6	116.3%	788.7	-17.6%
EBITDA	231.1	42.1	448.2%	319.4	-27.6%
EBITDA Margin	35.5%	14.0%	2150 bps	40.5%	-500 bps
Profit Before Tax	197.5	17.4	1036.7%	287.0	-31.2%
PBT Margin	30.4%	5.8%	2460 bps	36.4%	-601 bps
Profit After Tax	147.4	13.7	975.0%	212.5	-30.6%
PAT Margin	22.7%	4.6%	1811 bps	26.9%	-423 bps
EPS (₹)	114.9	10.7	975.0%	165.6	-30.6%

Business Segment Highlights

The CMS segment saw revenues driven by commercial molecules, with growth in new project orders expected to be delivered over this and next financial years. There is notable traction from innovators with peptide molecules in the pipeline. In the GDS segment, Ezetimibe and Mirtazapine were key molecules in the Prime segment, with Ezetimibe likely to drive future growth. The Specialty business was driven by Aripiprazole Sterile, Donepezil, and Apixaban.

Balance Sheet and Working Capital

Working capital days of sale improved significantly to 84 days in Q1FY27, down from 137 days in Q4FY26, mainly due to a decrease in receivables. Capex outflow stood at ₹122 crore in Q1FY27. Net debt increased to ₹308.5 crore as of June 30, 2026, compared to ₹164.7 crore in Q1FY26 and ₹156.8 crore in Q4FY26. Shareholder funds rose to ₹2,013.2 crore from ₹1,865.9 crore in March 2026.

What the Numbers Show

The divergence between revenue growth and profit expansion is notable. While total income grew 116.3% YoY, net profit surged 975%. This disproportionate rise suggests significant operating leverage, where fixed costs are spread over a larger revenue base, boosting margins. The EBITDA margin expansion of 2,150 basis points further confirms improved operational efficiency. However, the QoQ decline in both income and profit indicates potential seasonality or one-off factors in the previous quarter that inflated those numbers, making the YoY comparison more reflective of underlying business health. Management notes that investment intensity will likely increase based on available opportunities to build customer confidence.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE794A01010/d9d252d9-3fba-4f1f-bc61-e3a4d9ae752a.pdf

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.54%	+5.75%	+5.28%	+47.47%	+52.53%	+1,026.98%

Neuland Laboratories has reported a sharp improvement in its quarterly financial performance, with consolidated net profit surging to 1.48B rupees compared to 139M rupees in the corresponding period of the previous year. The company also announced a significant capacity expansion plan at its Unit-1 facility in Bonthapally Village, backed by an investment of 398 crores.

Strong Revenue and Profitability Growth

The company's revenue for the quarter rose to 6.42B rupees from 2.93B rupees year-on-year, reflecting substantial top-line growth. EBITDA climbed to 2.23B rupees from 345M rupees in the same period last year, underscoring a marked improvement in operating performance. The EBITDA margin expanded considerably to 34.74% from 11.78% year-on-year, indicating improved operational efficiency and cost management.

The following table summarizes the key financial metrics for the quarter:

Metric:	Current Quarter	Previous Year (YoY)
Revenue:	6.42B Rupees	2.93B Rupees
EBITDA:	2.23B Rupees	345M Rupees
EBITDA Margin:	34.74%	11.78%
Consolidated Net Profit:	1.48B Rupees	139M Rupees

Capacity Expansion at Bonthapally Unit-1

Alongside its quarterly results, Neuland Laboratories announced plans to increase production capacity at its Unit-1 facility located in Bonthapally Village. The expansion is planned with an investment of 398 crores, signaling the company's commitment to scaling its manufacturing infrastructure.

Parameter:	Details
Facility:	Unit-1, Bonthapally Village
Investment:	398 Crores
Purpose:	Increase Production Capacity

Key Highlights

Consolidated net profit rose to 1.48B rupees from 139M rupees year-on-year
Revenue increased to 6.42B rupees from 2.93B rupees year-on-year
EBITDA grew to 2.23B rupees from 345M rupees year-on-year
EBITDA margin expanded to 34.74% from 11.78% year-on-year
Capacity expansion planned at Unit-1, Bonthapally Village with an investment of 398 crores

The combination of strong quarterly financial results and a major capacity investment reflects a significant period of growth and operational development for Neuland Laboratories.