What is the story about?
Shares of Neuland Laboratories Ltd. are in focus on Wednesday, May 13, after the company reported a strong performance in the fourth quarter of the financial year 2026.
While it has lumpiness in revenues, the trend line over multiple quarters is strong.
The company reported a profit of ₹212.7 crore, up 664.8% from the previous year's ₹27.8 crore and up 424.2% from the prior quarter's ₹40.6 crore.
Its revenue of ₹776.25 crore was up 136.4% from the ₹328.4 crore it reported in the fourth quarter last year. It was also up 76.5% sequentially from ₹439.7 crore.
Its earnings before interest, tax, depreciation and amortization (EBITDA) increased 501.7% to ₹307.3 crore from the previous year's ₹51.1 crore. It was up 298.4% from the previous quarter's ₹77.1 crore.
The company's margins expanded to 39.6% in the fourth quarter compared to 15.6% in the year-ago period and from 17.5% in the previous quarter.
Neuland Labs provides active pharmaceutical ingredients (APIs), complex intermediates, custom manufacturing solutions.
The company's management said CNS contributed two-third of is revenue this quarter. It said the margins this quarter were due to record revenue and should not be seen as an indicator for future performance.
It has projected good business visibility in the short-to-medium term.
Neuland Labs managed higher freight costs towards the end of the quarter. It said it is watching the West Asia crisis closely, adding that the numbers were better than expected due to favourable exchange rates and the lumpiness in the quarter had to be recognised.
Over the next two to three years, growth is visible with the pipeline, the company said. It is looking at peptides, which will allow to diversify its revenue. Research and development is a critical pillar of long-term strategy, Neuland Labs said.
Shares of Neuland Labs ended the previous session 2.6% lower at 17,100 apiece. The stock is up 36% in the past year and 17.8% in the past month.
Also Read: MSCI Rejig: MCX, Indian Bank make the cut; RVNL, Kalyan Jewellers dropped
While it has lumpiness in revenues, the trend line over multiple quarters is strong.
How Did Neuland Fare In Q4
The company reported a profit of ₹212.7 crore, up 664.8% from the previous year's ₹27.8 crore and up 424.2% from the prior quarter's ₹40.6 crore.
Its revenue of ₹776.25 crore was up 136.4% from the ₹328.4 crore it reported in the fourth quarter last year. It was also up 76.5% sequentially from ₹439.7 crore.
Its earnings before interest, tax, depreciation and amortization (EBITDA) increased 501.7% to ₹307.3 crore from the previous year's ₹51.1 crore. It was up 298.4% from the previous quarter's ₹77.1 crore.
The company's margins expanded to 39.6% in the fourth quarter compared to 15.6% in the year-ago period and from 17.5% in the previous quarter.
Neuland Labs provides active pharmaceutical ingredients (APIs), complex intermediates, custom manufacturing solutions.
Management Commentary
The company's management said CNS contributed two-third of is revenue this quarter. It said the margins this quarter were due to record revenue and should not be seen as an indicator for future performance.
It has projected good business visibility in the short-to-medium term.
Neuland Labs managed higher freight costs towards the end of the quarter. It said it is watching the West Asia crisis closely, adding that the numbers were better than expected due to favourable exchange rates and the lumpiness in the quarter had to be recognised.
Over the next two to three years, growth is visible with the pipeline, the company said. It is looking at peptides, which will allow to diversify its revenue. Research and development is a critical pillar of long-term strategy, Neuland Labs said.
Shares of Neuland Labs ended the previous session 2.6% lower at 17,100 apiece. The stock is up 36% in the past year and 17.8% in the past month.
Also Read: MSCI Rejig: MCX, Indian Bank make the cut; RVNL, Kalyan Jewellers dropped
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