Neuland Laboratories (524558) Q4 25/26 earnings summary

Executive summary

• Q4 FY 2026 total income reached INR 788.7 crore, up 134.9% year-over-year, driven by commercial CMS projects and strong performance in commercial and near-commercial molecules.

• FY 2026 revenue grew 37% to INR 2,053.1 crore, with EBITDA at INR 603.4 crore and margin at 29.4%.

• Profit after tax for FY 2026 was INR 363.1 crore, with EPS at INR 283.01 per share.

• Investments in peptide manufacturing, a new R&D center, and a new facility on track for July are supporting future growth and strategic focus.

• Audited standalone and consolidated financial results for FY 2026 were approved with an unmodified audit opinion; a final dividend of ₹34 per share was recommended.

Financial highlights

• Q4 EBITDA was INR 319.4 crore (40%+ margin), and profit after tax was INR 212.5 crore, up from INR 27.7 crore in Q4 FY 2025.

• FY 2026 consolidated revenue was ₹202,298.54 lakhs, with net profit at ₹36,399.84 lakhs and EPS at ₹283.71.

• Free cash flow for FY 2026 was negative INR 49.4 crore due to higher working capital and CapEx outflows; CapEx cash outflow was INR 397.1 crore.

• Net debt at FY26 end stood at INR -157 crore, supported by cash balances of INR 353 crore.

• Working capital days increased to 137 from 107 year-over-year, mainly due to higher inventories and receivables.

Outlook and guidance

• Management expects continued lumpy quarterly performance but strong multi-year growth, targeting 18%-20% CAGR over a 5-year horizon.

• Peptide facility to be operational by July, with project ramp-up expected; focus remains on commercial and near-commercial molecules.

• Capacity at Unit 1 to be enhanced by 120.5 KL over 12–18 months, with an investment of ₹143.4 crores.