Neuland Laboratories Reports Stellar Q2 FY26 Performance with 195% Surge in Net Profit

Neuland Laboratories , a leading pharmaceutical manufacturer, has reported robust financial results for the second quarter of fiscal year 2026, showcasing significant growth across key metrics.

Financial Highlights

The company's consolidated net profit for Q2 FY26 surged to ₹969.00 million, marking a substantial 195% increase from ₹328.00 million in the corresponding quarter of the previous year. This impressive growth was accompanied by a significant rise in revenue, which reached ₹5,150.00 million, up from ₹3,100.00 million year-over-year, representing a 66% increase.

Operational Performance

Neuland Laboratories demonstrated strong operational efficiency, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rising to ₹1,550.00 million from ₹622.00 million in the same quarter last year. The EBITDA margin improved significantly, reaching 30.25% compared to 20.02% in Q2 FY25, indicating enhanced profitability and operational effectiveness.

Key Financial Metrics

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	₹5,150.00 million	₹3,100.00 million	+66%
EBITDA	₹1,550.00 million	₹622.00 million	+149%
EBITDA Margin	30.25%	20.02%	+1023 bps
Net Profit	₹969.00 million	₹328.00 million	+195%

Management Commentary

Mr. Sucheth Davuluri, Vice-Chairman and Chief Executive Officer of Neuland Laboratories, commented on the performance: "The record high revenue this quarter driven by CMS commercial projects led to the operating leverage reflected in the EBITDA margins, and we expect this momentum to continue through the rest of the year. Given the investments we are making, Neuland is well positioned to take advantage of the number of growth opportunities available to us in both the CDMO as well as the generic APIs space."

Mr. Saharsh Davuluri, Vice Chairman and Managing Director, added: "Customer interest in Neuland's capabilities continues to be on the rise as we see increased engagement with a diverse range of customers. Our reputation and track record as an agile partner is enabling not just new business but for greater share of business from existing customers. Our investments are going according to plan and helping to further differentiate Neuland as a partner of choice."

Business Segment Performance

The company's Custom Manufacturing Solutions (CMS) segment has been a key driver of growth, with commercial projects contributing significantly to the revenue increase. The Generic Drug Substances (GDS) segment also showed positive performance, with key molecules like Ezetimibe and Mirtazapine driving growth in the Prime segment.

Operational Highlights

Unit-2 received an Establishment Inspection Report (EIR) post FDA inspection in Q1 FY26.
One US Drug Master File (USDMF) was filed in Q2 FY26.
Unit-1 received the Sword of Honour from the British Safety Council for outstanding Health & Safety practices.

Financial Position

As of September 30, 2025, Neuland Laboratories reported a strong financial position with a net cash balance of ₹6.60 crore, improving from a net debt position of ₹94.30 crore at the end of Q2 FY25.

The company's robust performance in Q2 FY26 reflects its strategic focus on high-value segments and operational efficiency. With continued investments in capabilities and a strong order book, Neuland Laboratories appears well-positioned for sustained growth in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.01%	-1.86%	+5.57%	+36.83%	+17.43%	+1,460.48%

Neuland Laboratories has announced the successful completion of its recent postal ballot, with shareholders approving two significant leadership re-designations. The e-voting process, which ran from October 7 to November 5, 2025, saw overwhelming support for the proposed changes in the company's top management.

Key Resolutions Passed

Re-designation of Mr. Davuluri Sucheth Rao: Shareholders approved the re-designation of Mr. Davuluri Sucheth Rao (DIN: 00108880) as Executive Vice Chairman.
Re-designation of Mr. Davuluri Saharsh Rao: The re-designation of Mr. Davuluri Saharsh Rao (DIN: 02753145) as Chief Executive Officer & Managing Director was also approved.

Voting Results

Both resolutions received near-unanimous support from shareholders across all categories. The detailed voting results are as follows:

Resolution	Votes in Favor	Votes Against	% in Favor
Re-designation of Mr. Davuluri Sucheth Rao	7,239,738	13	100.00%
Re-designation of Mr. Davuluri Saharsh Rao	7,239,634	13	100.00%

Shareholder Participation

The e-voting saw significant participation from shareholders:

Promoter and Promoter Group: 98.79% of their shares were voted, all in favor of both resolutions.
Public Institutions: 70.94% of institutional shares were voted, with 100% support for both resolutions.
Public Non-Institutions: While only 2.72% of shares in this category were voted, they showed overwhelming support with 99.99% voting in favor.

Scrutinizer's Report

The e-voting process was scrutinized by CS Shaik Razia, Partner at D. Hanumanta Raju & Co., Company Secretaries. The scrutinizer confirmed the validity of the voting process and the results.

Compliance and Disclosure

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Neuland Laboratories has promptly disclosed the voting results to the stock exchanges. Ms. Sarada Bhamidipati, Company Secretary and Compliance Officer, has been entrusted with completing the necessary formalities related to this postal ballot.

These leadership changes, approved by an overwhelming majority of shareholders, signal a new chapter in Neuland Laboratories' corporate governance and management structure. The strong support from all categories of shareholders indicates confidence in the company's strategic decisions and future direction under the newly designated leadership roles.