Neuland Laboratories Ltd(NEULANDLAB)

NSE: NEULANDLABBSE: 524558

₹ 18,882.05-0.24%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 24,225 crNext results: 3 Nov 2026Website: www.neulandlabs.comUpdated: 24 Oct 2026

About

Neuland Laboratories Ltd is an Indian pharmaceutical company specialising in active pharmaceutical ingredient (API) manufacturing across two businesses: Contract Manufacturing Services (CMS) for innovator and specialty molecules, and Generic Drug Substances (GDS) for off-patent APIs sold globally. In FY26 the company reported revenue of Rs 2,022.99 crore, with CMS contributing over two-thirds of quarterly revenue by Q4 FY26.^[1][2]

Business segments

CMS (Contract Manufacturing Services): manufactures APIs under long-term contracts for innovator and specialty pharmaceutical companies; contributed over two-thirds of revenue in Q4 FY26.^[2]
GDS (Generic Drug Substances): sells off-patent APIs to generic pharmaceutical customers globally; includes a specialty sub-segment covering sterile and niche molecules such as Paliperidone and Aripiprazole.^[3][4]

Products and portfolio

CMS commercial revenue is concentrated: approximately 3 molecules drive the bulk of commercial CMS revenue as of Q1 FY27, with management noting healthy multi-year visibility on these programs.^[4]
GDS portfolio includes Ezetimibe, Mirtazapine, Escitalopram, and Aripiprazole, which contributed to GDS performance in Q1 FY27.^[4]
Active CMS development and commercial projects totalled 99 in Q1 FY27, up from 98 in Q1 FY26.^[4]
A new CMS molecule was commercialised with initial shipments sent out at the end of Q3 FY26, adding to the commercial base.^[5]

Manufacturing operations

Three API manufacturing units are in operation; Units 1 and 2 ran at 85 - 90% utilisation and Unit 3 at approximately 65% as of Q4 FY26.^[2]
A new large-scale peptide manufacturing facility, located within an existing FDA-approved site, was set for commissioning in September 2026, with multiple projects already queued for the facility.^[4]
Unit 3 capacity expansion: a new production block was commissioned and validated in Q2 FY26, and commercial supplies from the expanded block commenced in Q3 FY26.^[3][5]
A new R&D campus of 140,000 sq ft in Genome Valley was approved for lease in Q3 FY26 to build a state-of-the-art R&D centre with enhanced peptide capabilities.^[5]

Key operating numbers

EBITDA margin: 35.5% in Q1 FY27 vs 14.0% in Q1 FY26 (+2,150 bps YoY); gross margin 61.2% in Q1 FY27 vs 55.3% in Q1 FY26.^[4]
Working capital days improved sharply from 137 days at end of FY26 to 84 days in Q1 FY27, mainly driven by a decrease in receivables.^[4]
Net cash position strengthened to Rs 308.5 crore in Q1 FY27 vs Rs 164.7 crore (net cash) in Q1 FY26.^[4]
Total income grew 116.3% YoY to Rs 650.1 crore in Q1 FY27; in Q4 FY26 total income was Rs 788.7 crore, up 134.9% YoY.^[4][2]

Customers and distribution

Top 5 customers accounted for 63% of overall revenue in Q1 FY27, reflecting concentrated exposure to a small number of large CMS partners.^[4]
GDS strategy targets deepening presence in Brazil, Japan, South Korea, and Turkey, while also pursuing lifecycle management opportunities with innovators.^[4]

Expansion and capex

Of the Rs 1,460 crore in approved capex across 13 quarters, Rs 870 crore had been spent as of Q1 FY27; capex outflow in Q1 FY27 alone was Rs 121.6 crore.^[4]
Management indicated the next capex cycle will be materially higher in quantum and qualitatively different from the prior Rs 1,460 crore programme.^[4]
Module 1 of the large-scale peptide facility carries an estimated investment of Rs 250 - 280 crore; full build-out of all four modules is directionally estimated above Rs 1,000 crore.^[3]
The company is evaluating additional manufacturing sites beyond the current three units, with larger land parcels to support growth beyond the 3 - 4 year horizon.^[4]

Recent developments

In Q1 FY27 Neuland entered an asset-light strategic collaboration with Gland Pharma for sterile (aseptic) API manufacturing covering niche specialty GDS molecules.^[4]
At least 2 new CMS development projects described as advanced in the clinic were added in FY27 as of Q1 FY27, including peptide projects not previously in the pipeline.^[4]
Management signalled potential M&A or organic overseas investments in complex modalities over the next 1 - 2 years as part of the next phase of growth.^[4]
One additional CMS molecule is expected to achieve commercial status in FY27, with one to two further commercialisations expected in FY28.^[4]

Market Cap

₹24,225 Cr

High / Low

₹24,235 / 11,500

Stock P/E

48.7

Price / Book

12.9

Book Value

₹1,461

EPS

₹283.7

No. of Shares

1.28 Cr

ROCE

26.6%

ROE

21.4%

OPM

25.0%

Debt / Equity

0.10

Sales

₹2,023 Cr

Net Profit

₹364 Cr

Promoter holding

32.3%

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Neuland Laboratories Ltd(NEULANDLAB)

About

Business segments

Products and portfolio

Manufacturing operations

Key operating numbers

Customers and distribution

Expansion and capex

Recent developments

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