Transcript of the Earnings Call conducted on May 12, 2026
NEULANDLAB · price
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Neuland Laboratories reported Q4FY26 total income of INR788.7 crores (up 134.9% YoY) driven by commercial CMS projects contributing over two-thirds of revenue. Full-year FY26 revenue stood at INR2,053.1 crores with 37.1% growth, EBITDA of INR603.4 crores at 29.4% margin, and PAT of INR363.1 crores. The company flagged business volatility as inherent due to lumpy revenue flows and advised viewing performance over 10-12 quarters rather than quarters. Management reiterated 18-20% CAGR as an aspirational target over 5 years. The peptide facility remains on track for July 2026 completion. Saharsh Davuluri officially took over as MD & CEO from April 1 as part of a planned transition. Cash flow turned negative at INR49.4 crores due to higher working capital and capex of INR397.1 crores, though net debt remains negative at INR157 crores with INR353 crores cash balance. Working capital days increased to 137 days from 107 days.
Strong Q4 and FY26 results demonstrate the company's CDMO growth trajectory, but investors should note the high margin of 40.5% in Q4 was partly due to business mix and should not be extrapolated. The negative free cash flow and elevated working capital days warrant monitoring, though management expects normalization in FY27.