Neuland Laboratories Limited , a leading pharmaceutical manufacturer, has announced its financial results for the first quarter of fiscal year 2026 and the reappointment of an independent director.

Q1 FY26 Financial Performance

The company reported a consolidated revenue from operations of ₹292.75 crore for the quarter ended June 30, 2025, compared to ₹439.60 crore in the same quarter last year, marking a decline of 33.4%. The profit for the period stood at ₹13.71 crore, down from ₹98.34 crore in the previous year's corresponding quarter.

Key Financial Metrics

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 FY26 was ₹42.10 crore, with an EBITDA margin of 14.00%, compared to ₹128.60 crore and 28.90% in Q1 FY25, respectively.

Management Commentary

Mr. Sucheth Davuluri, Vice-Chairman and Chief Executive Officer of Neuland Laboratories, commented on the results: "While Q1 FY26 has been below par as a result of the flow of customer orders, it doesn't change our outlook on the healthy growth that we anticipate this financial year. The investments we have announced are proceeding according to plan and would be drivers of short as well as long term growth."

Mr. Saharsh Davuluri, Vice Chairman and Managing Director, added: "We see substantial growth this year from our commercial molecules even as there is a significant influx of new business from existing and new customers along with customers' pipeline projects making exciting progress."

Reappointment of Independent Director

In a separate announcement, the company's Board of Directors approved the reappointment of Dr. Ravi Shankar Gopinath as an Additional Director, categorized as Independent, for a term of five consecutive years, effective from August 1, 2025. The appointment is subject to shareholder approval.

Dr. Gopinath, aged 60, brings over 30 years of diverse global experience to the board. He has a proven track record in scaling high-growth and profitable businesses through organic and inorganic strategies. Dr. Gopinath holds a Ph.D. in Chemical Engineering from Rensselaer Polytechnic Institute, New York, and a Masters in Chemical Engineering from IIT, Bombay.

Looking Ahead

Despite the challenging quarter, Neuland Laboratories remains optimistic about its growth prospects. The company continues to focus on cost optimization opportunities across products and processes, which it believes will further strengthen its position in key products. With ongoing investments in people and capabilities, Neuland aims to differentiate itself as a CDMO with deep expertise and an agile, innovative partner in the pharmaceutical industry.

Neuland Laboratories Limited , a prominent pharmaceutical company, has released an addendum to its 41st Annual General Meeting (AGM) notice, shedding light on the proposed commission structure for Mr. Davuluri Saharsh Rao's reappointment. The AGM, scheduled for July 30, 2025, will be held virtually through video conferencing.

Commission Structure Details

The addendum outlines a performance-based commission structure for Mr. Rao, which is designed to align with shareholders' interests and promote company growth. Key aspects of the commission structure include:

• Maximum Limit: The commission will not exceed 2% of the company's net profits (computed under Section 198 of the Companies Act, 2013) or INR 10.00 crores, whichever is lower, for each financial year during his tenure.

• Performance Metrics: The commission will be determined based on a balanced scorecard approach with the following weightage:

  • 60% for financial parameters
  • 40% for non-financial parameters

Balanced Scorecard Approach

The balanced scorecard includes various metrics to ensure a comprehensive evaluation of performance:

1. Financial Parameters (60% weightage)

• Revenue growth
• CMS (Contract Manufacturing Services) business growth
• Other financial goals as decided by the Board

2. Non-Financial Parameters (40% weightage)

• Capability building
• Customer satisfaction scores
• Brand building
• New product development
• Compliance
• Employee engagement scores
• Sustainability goals

Performance Threshold and Discretionary Adjustments

To ensure accountability and maintain high standards, the commission structure includes:

• Minimum Eligibility: A minimum achievement of 70% against set goals is required for commission eligibility. No payment will be made if performance falls below this threshold.

• Discretionary Adjustment: The Nomination and Remuneration Committee (NRC) may recommend adjustments to the weightages based on external factors or extraordinary circumstances.

Governance and Approval Process

The commission will be determined by the Board of Directors based on recommendations from the Nomination and Remuneration Committee. This process ensures proper oversight and alignment with the company's remuneration policies.

Transparency and Disclosure

Neuland Laboratories has demonstrated its commitment to transparency by publishing this addendum in major newspapers and making it available on the company's website and stock exchange platforms. This move allows shareholders to make informed decisions regarding the proposed reappointment and compensation structure.

The 41st AGM of Neuland Laboratories Limited is set to take place on July 30, 2025, at 10:00 AM (IST) through video conferencing. Shareholders will have the opportunity to vote on various resolutions, including the reappointment of Mr. Davuluri Saharsh Rao with the newly clarified commission structure.