Neuland Laboratories , a leading pharmaceutical company, has reported its highest ever quarterly revenue of Rs 516 crore for Q2, marking a significant 63.7% increase from Rs 315 crore in the same period last year. The company's performance was primarily driven by strong growth in its Contract Manufacturing Services (CMS) segment.

Financial Highlights

Key Performance Drivers

The company's growth was largely attributed to the strong performance of its top two commercial CMS molecules. The CMS segment, which now accounts for more than half of Neuland's revenues, has been a key factor in the company's recent success.

Business Segment Performance

Contract Manufacturing Services (CMS)

• Continued strong growth, with top two commercial molecules performing well
• Expecting commercialization of another molecule this year

Generic Drug Substances (GDS)

• Prime segment: Good contributions from products like Ezetimibe and Mirtazapine
• Specialty segment: Subdued performance, with contributions from sterile products Paliperidone and Aripiprazole

Operational Updates

• The company's peptide facility investment is progressing as planned, with Module-1 expected to be operational in the next financial year
• Strong customer interest reported in Neuland's peptide capabilities
• One Drug Master File (DMF) filed during the quarter

Financial Position

• Working capital increased to 155 days of sales due to higher inventories and receivables
• CAPEX for the quarter was Rs 91.00 crore, with Rs 170.70 crore invested in the six-month period

Management Commentary

Saharsh Davuluri, Vice Chairman and Managing Director, commented on the results: "The numbers this quarter substantiate our earlier expectations regarding FY26. We are seeing good traction in terms of customer visits, RFPs, and conversions. Our reputation and track record as an agile partner is enabling not just new business but greater share of business from existing customers."

Future Outlook

While the company remains optimistic about its growth trajectory, management has cautioned about the inherent unevenness of the business on a quarter-to-quarter basis. Neuland Laboratories continues to focus on balancing growth and profitability by optimizing costs and processes to ensure long-term sustainability.

The company's investment in peptide capabilities and its strong pipeline in the CMS segment position it well for future growth. However, management has noted that factors such as foreign exchange fluctuations, raw material cost volatility, and geopolitical risks could influence business performance.

As Neuland Laboratories continues to strengthen its position in the pharmaceutical manufacturing space, investors and industry observers will be watching closely to see if the company can maintain its growth momentum in the coming quarters.

Neuland Laboratories , a prominent player in the pharmaceutical industry, has reported robust financial results for the second quarter, showcasing significant growth across key metrics.

Financial Highlights

Strong Performance Across the Board

Neuland Laboratories has demonstrated remarkable growth in the second quarter, with its net profit nearly tripling compared to the same period last year. The company's net profit surged to ₹969.00 million, up from ₹328.00 million in the corresponding quarter of the previous year, marking a substantial increase of 195.40%.

Revenue Growth

The company's revenue also saw a significant uptick, rising to ₹5.15 billion from ₹3.10 billion year-over-year, representing a robust growth of 66.10%. This considerable increase in revenue indicates strong demand for Neuland's products and services in the market.

Improved Operational Efficiency

Neuland Laboratories' operational efficiency showed marked improvement, as evidenced by its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) performance. The EBITDA rose to ₹1.55 billion, compared to ₹622.00 million in the same quarter of the previous year, reflecting a substantial increase of 149.20%.

Enhanced Profitability

The company's profitability metrics also showed significant enhancement. The EBITDA margin expanded to 30.25% from 20.02% year-over-year, an improvement of 10.23 percentage points. This increase in EBITDA margin suggests that Neuland Laboratories has successfully managed its operational costs while growing its revenue.

The strong financial results across all key metrics indicate that Neuland Laboratories has effectively capitalized on market opportunities and potentially improved its operational strategies. These results position the company well for continued competitiveness in the pharmaceutical sector.