Neuland Laboratories Ltd
Neuland Laboratories Ltd
HealthcareKey Fundamentals
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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52 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
2- Company is expected to give good quarter
- Company has delivered good profit growth of 38.5% CAGR over last 5 years
Weaknesses
2- Stock is trading at 15.4 times its book value
- Promoter holding has decreased over last 3 years: -3.41%
Growth Rate
AI Analysis — Bull vs Bear
Neuland Laboratories is a mid-cap CDMO/API player with a market cap of Rs 25,363 Cr trading at a PE of 68x. The company has delivered exceptional TTM sales growth of 78% and profit growth of 278%, though valuations at 13.2x book value reflect significant premium pricing relative to historical norms.
- TTM sales growth of 78% indicates a sharp acceleration in revenue momentum well above the 3-year CAGR of 19%
- TTM profit growth of 278% demonstrates significant operating leverage kicking in as the business scales
- 5-year compounded profit CAGR of 39% reflects sustained earnings compounding over a longer horizon
- ROE of 21% in the last year marks improvement over the 10-year average of 14%, signaling better capital efficiency
- 3-year ROE of 20% and 5-year ROE of 18% show a consistent upward trajectory in return ratios
- Stock CAGR of 75% over 3 years reflects strong market recognition of the CDMO opportunity in the API space
- 10-year compounded sales CAGR of 15% and profit CAGR of 29% show the business has compounded steadily across cycles
- Company is expected to deliver a good upcoming quarter based on forward indicators, suggesting growth momentum is continuing
- PE ratio of 68x is significantly elevated, pricing in substantial future growth and leaving little margin of safety
- Price-to-book of 13.2x is expensive for a manufacturing-oriented API business, implying the market expects extraordinary returns on equity going forward
- Promoter holding has declined by 3.41% over the last 3 years, which may signal insider profit-taking at elevated valuations
- Dividend yield of only 0.18% offers negligible income, meaning returns are entirely dependent on continued capital appreciation
- 1-year stock CAGR of 56% after a 3-year CAGR of 75% suggests expectations are heavily front-loaded and vulnerable to any growth disappointment
- TTM profit growth of 278% is unlikely to be repeatable, creating a high base effect that could make future growth comparisons unfavorable
- The gap between 5-year sales CAGR of 17% and 5-year profit CAGR of 39% suggests margin expansion may already be largely captured
- 52-week high and low data unavailable, limiting visibility on recent price range and drawdown risk assessment
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- PAT surges 975% YoY in Q1 Aug 5
Net profit jumped 975% YoY to ₹147.4 crore for Q1FY27 with EBITDA rising 448% to ₹231.1 crore. EBITDA margins expanded sharply from 11.78% to 34.74% YoY.
- ₹398 crore capacity expansion announced Aug 6
Company announced ₹398 crore investment to expand production capacity at Unit-1 in Bonthapally. Revenue grew to ₹642 crore from ₹293 crore YoY in Q1.
- Commercial production begins at units Aug 1
Neuland commenced commercial production of additional capacities at Unit 1 and Unit 3 facilities in Sangareddy District, Telangana.
- ₹34 dividend, new director appointed Aug 4
Shareholders approved final dividend of ₹34 per share for FY26 and appointed Dr. Mauricio Futran as Non-Executive Director with overwhelming support.
- Strategic sterile API partnership Aug 5
Neuland announced a strategic sterile API partnership with Gland Pharma, complementing its strong Q1 results driven by CMS and GDS businesses.
- Emkay Confluence 2026 attendance Aug 7
Management to participate in Emkay Confluence 2026 in Mumbai on August 12, with group and one-on-one meetings with analysts and institutional investors.
- Q1FY27 earnings call held Aug 5
Earnings conference call for quarter ended June 30, 2026 was held on August 5 at 17:30 IST. Audio recording uploaded per SEBI regulations.
TL;DR: Neuland Laboratories delivered an exceptional Q1FY27 with PAT surging ~975% YoY and EBITDA margins expanding to nearly 35%, driven by strong CMS and GDS business momentum. The company is aggressively investing in growth with a ₹398 crore capacity expansion and new commercial production already online. No visible headwinds in recent news flow. The trend is strongly improving with expanding margins, new partnerships, and capacity additions positioning the company for continued growth.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 363 | 418 | 393 | 385 | 440 | 311 | 398 | 328 | 293 | 514 | 440 | 776 | 642 |
| Expenses | 266 | 280 | 272 | 278 | 316 | 249 | 311 | 277 | 258 | 359 | 363 | 469 | 419 |
| Operating Profit | 97 | 137 | 121 | 107 | 123 | 62 | 87 | 51 | 34 | 156 | 77 | 307 | 223 |
| OPM % | 27% | 33% | 31% | 28% | 28% | 20% | 22% | 16% | 12% | 30% | 18% | 40% | 35% |
| Other Income | 2 | 3 | 2 | 5 | 25 | 4 | 60 | 7 | 8 | 2 | 8 | 12 | 8 |
| Interest | 2 | 4 | 4 | 4 | 3 | 1 | 2 | 2 | 5 | 5 | 7 | 7 | 7 |
| Depreciation | 14 | 15 | 15 | 16 | 16 | 16 | 16 | 17 | 20 | 23 | 24 | 25 | 27 |
| PBT | 83 | 122 | 104 | 92 | 130 | 49 | 128 | 39 | 18 | 129 | 54 | 287 | 198 |
| Tax % | 26% | 27% | 22% | 27% | 25% | 34% | 20% | 29% | 21% | 25% | 26% | 26% | 25% |
| Net Profit | 62 | 89 | 81 | 68 | 98 | 33 | 102 | 28 | 14 | 97 | 41 | 213 | 148 |
| EPS in Rs | 48.23 | 69.56 | 63.44 | 52.66 | 76.28 | 25.6 | 79.18 | 21.68 | 10.83 | 75.49 | 31.62 | 166 | 115 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 469 | 510 | 579 | 527 | 667 | 763 | 937 | 951 | 1,191 | 1,559 | 1,477 | 2,023 | 2,372 |
| Expenses | 402 | 430 | 472 | 477 | 608 | 661 | 790 | 807 | 918 | 1,096 | 1,146 | 1,443 | 1,609 |
| Operating Profit | 67 | 80 | 106 | 51 | 58 | 102 | 147 | 144 | 273 | 463 | 331 | 580 | 763 |
| OPM % | 14% | 16% | 18% | 10% | 9% | 13% | 16% | 15% | 23% | 30% | 22% | 29% | 32% |
| Other Income | 0 | 2 | 1 | 4 | 3 | 4 | 16 | 0 | 9 | 12 | 90 | 25 | 31 |
| Interest | 27 | 24 | 21 | 19 | 16 | 22 | 18 | 14 | 13 | 14 | 8 | 24 | 26 |
| Depreciation | 15 | 16 | 19 | 22 | 26 | 31 | 40 | 49 | 53 | 60 | 66 | 92 | 98 |
| PBT | 25 | 42 | 67 | 14 | 20 | 53 | 105 | 82 | 216 | 401 | 346 | 489 | 669 |
| Tax % | 36% | 36% | 30% | 13% | 19% | 69% | 23% | 22% | 24% | 25% | 25% | 26% | — |
| Net Profit | 16 | 27 | 47 | 12 | 16 | 16 | 81 | 64 | 164 | 300 | 260 | 364 | 498 |
| EPS in Rs | 17.96 | 30.75 | 52.74 | 13.57 | 12.81 | 12.63 | 62.85 | 49.74 | 127 | 234 | 203 | 284 | 388 |
| Div. Payout % | 8% | 7% | 0% | 0% | 0% | 16% | 8% | 10% | 8% | 6% | 6% | 12% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 9 | 9 | 9 | 9 | 13 | 13 | 13 | 13 | 13 | 13 | 13 | 13 |
| Reserves | 152 | 178 | 537 | 549 | 686 | 697 | 774 | 828 | 981 | 1,270 | 1,512 | 1,862 |
| Borrowings | 188 | 182 | 192 | 319 | 231 | 264 | 182 | 241 | 128 | 95 | 157 | 301 |
| Other Liabilities | 162 | 155 | 148 | 194 | 200 | 257 | 356 | 302 | 457 | 454 | 498 | 754 |
| Total Liabilities | 512 | 524 | 886 | 1,071 | 1,130 | 1,231 | 1,325 | 1,383 | 1,580 | 1,833 | 2,180 | 2,930 |
| Fixed Assets | 123 | 139 | 466 | 475 | 542 | 653 | 716 | 767 | 758 | 824 | 955 | 1,177 |
| CWIP | 41 | 40 | 20 | 126 | 104 | 24 | 17 | 20 | 41 | 46 | 48 | 211 |
| Investments | 7 | 7 | 8 | 8 | 8 | 8 | 7 | 4 | 1 | 1 | 109 | 2 |
| Other Assets | 340 | 337 | 393 | 463 | 476 | 547 | 585 | 592 | 781 | 962 | 1,068 | 1,541 |
| Total Assets | 512 | 524 | 886 | 1,071 | 1,130 | 1,231 | 1,325 | 1,383 | 1,580 | 1,833 | 2,180 | 2,930 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 13 | 45 | 39 | 11 | 70 | 57 | 189 | 60 | 237 | 261 | 317 | 347 |
| Investing | -14 | -20 | -42 | -116 | -77 | -49 | -84 | -95 | -61 | -150 | -298 | -423 |
| Financing | 1 | -24 | 0 | 105 | 12 | -5 | -114 | 38 | -136 | -69 | 25 | 21 |
| Net Cash Flow | 0 | 1 | -4 | 0 | 5 | 3 | -9 | 3 | 40 | 42 | 44 | -55 |
| Free Cash Flow | -1 | 26 | -2 | -121 | 7 | 9 | 84 | -37 | 173 | 119 | 112 | -50 |
| CFO/OP | 33 | 70 | 52 | 28 | 128 | 61 | 132 | 56 | 103 | 81 | 119 | 78 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 100 | 85 | 114 | 134 | 90 | 91 | 85 | 90 | 111 | 87 | 78 | 98 |
| Inventory Days | 170 | 182 | 186 | 266 | 191 | 209 | 205 | 227 | 211 | 220 | 238 | 245 |
| Days Payable | 167 | 121 | 118 | 189 | 118 | 110 | 126 | 100 | 129 | 121 | 156 | 129 |
| Cash Conversion Cycle | 103 | 147 | 182 | 211 | 162 | 190 | 164 | 216 | 193 | 187 | 160 | 214 |
| Working Capital Days | 11 | 26 | 44 | 38 | 138 | 137 | 60 | 74 | 81 | 88 | 76 | 75 |
| ROCE % | 16% | 18% | 16% | 4% | 4% | 8% | 11% | 10% | 21% | 33% | 19% | 26% |
Documents
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Company Information
Neuland Laboratories is engaged in manufacturing and selling of bulk drugs and caters to both domestic and international markets.[1]