Transcript of the Earnings Call conducted on May 12, 2026
NEULANDLAB · price
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Neuland Laboratories reported exceptional Q4FY26 with total income of INR788.7 crores, up 134.9% YoY, driven by CMS (Contract Manufacturing Manufacturing Services) contributing over two-thirds of revenue. For FY26, revenue reached INR2,053.1 crores (37.1% growth) with EBITDA margin expanding to 29.4% from 22.9% last year. However, free cash flow was negative at INR49.4 crores due to higher working capital (137 days vs 107 days) and capex of INR397.1 crores. Management acknowledged business volatility as inherent and reaffirmed 18-20% CAGR as aspirational over 5 years. The peptide facility remains on track for July 2026, with the CEO estimating a $5-6 billion CDMO market opportunity for peptides with potential to create another Neuland-scale business.
Strong Q4 and FY26 results reflect successful CMS execution and margin expansion, though investors should expect continued quarterly volatility due to project-based revenues. Working capital normalization and cash conversion remain focus areas for FY27.