Neuland Laboratories has announced the sad demise of Dr. Christopher M Cimarusti, Non-Executive Non-Independent Director of the company. The pharmaceutical company informed stock exchanges that Dr. Cimarusti passed away on February 28, 2026.

Board Association and Contributions

Dr. Cimarusti had been associated with Neuland Laboratories' board since 2009, serving for over 17 years. During his tenure, the company benefited significantly from his vision, guidance, and valuable contributions, particularly in the research and development function. His long-standing association with the company reflects his commitment to its growth and development in the pharmaceutical sector.

Regulatory Compliance Details

The company has filed the mandatory disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was submitted to both BSE Limited and The National Stock Exchange of India Ltd on March 3, 2026.

Company Response

All directors and employees of Neuland Laboratories have expressed their deep sorrow and condolences to Dr. Cimarusti's family. The company acknowledged his significant contributions during his board tenure, emphasizing his impact on the organization's research and development capabilities.

The disclosure follows the requirements under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring compliance with regulatory obligations for changes in board composition.

Neuland Laboratories reported mixed financial results for Q3FY26 and conducted its earnings conference call on February 9, 2026, where management discussed the company's performance, strategic investments, and future growth prospects. The pharmaceutical company demonstrated revenue growth but faced margin pressures due to product mix challenges and higher operating expenses.

Q3FY26 Financial Performance

The company's total income for Q3FY26 reached Rs. 447.8 crore, marking an 11.4% year-on-year increase from Rs. 401.9 crore in Q3FY25. However, profitability metrics showed contrasting trends with EBITDA declining to Rs. 85.0 crore compared to Rs. 90.3 crore in the previous year.

Nine-Month Performance Overview

For the nine-month period ending December 31, 2025, Neuland Laboratories demonstrated steady revenue growth with total income rising 8.9% to Rs. 1,264.5 crore from Rs. 1,160.9 crore in the corresponding period last year.

Management Commentary on Business Performance

During the earnings call, CFO Abhijit Majumdar explained that commercial CMS projects contributed over 50% of revenue for the quarter. The lower EBITDA margin of 19% was attributed to reduced gross margins and increased overheads, including a Rs. 10 crore impact from labor codes. Without this impact, EBITDA would have stood at Rs. 95 crore with a 21% margin.

Vice Chairman and Managing Director Saharsh Davuluri noted that while revenues aligned with annual outlook, product mix within businesses and increased operating expenses impacted EBITDA margins. He emphasized that the quarter's performance was "in line with expectations" despite lower margins.

Strategic Investments and Capacity Expansion

The company reported significant operational developments including working capital improvement to 145 days of sales in Q3FY26 from 155 days in Q2FY26. Capital expenditure outflow reached Rs. 254.0 crore during 9MFY26, supporting future growth plans.

CDMO Business and Future Outlook

Management highlighted increasing customer interest in the company's capabilities as a proven commercial NCE drug substance manufacturer. The CDMO business transition has evolved over decades, with majority revenues now derived from human health-focused CDMO operations.

Saharsh Davuluri emphasized the company's positioning for "decadal growth," projecting potential for 20-plus CAGR from 2026 to 2036. He noted that growth for the next 2-3 years is "preordained" by existing products requiring execution, while peptide investments target growth beyond the 3-year period.

Peptide Manufacturing Initiative

The company reported strong traction in peptide CDMO capabilities, with 5-6 innovators approaching Neuland with peptide projects during the year. Management expressed confidence in securing at least one commercial manufacturing arrangement for a peptide NCE in FY27, supported by the large-scale peptide manufacturing facility ready for commissioning in July.

Earnings Call Transcript Release

Neuland Laboratories filed the complete earnings call transcript with BSE and NSE on February 13, 2026, pursuant to Regulation 30 of SEBI regulations. The transcript has been made available on the company's website for investor access.