Neuland Lab sizzles after Q1 PAT leaps over 10-fold to Rs 148 cr
Net sales more than doubled, rising 119.16% YoY to Rs 641.58 crore, reflecting strong business momentum during the quarter.
Profit before tax (PBT) surged to Rs 197.84 crore in Q1 FY27, up 1,026.01% compared with Rs 17.57 crore in the year-ago period.
Operating performance strengthened significantly, with EBITDA jumping 448.2% YoY to Rs 231.1 crore from Rs 42.1 crore in Q1 FY26. EBITDA margin expanded by 1,250 basis points to 35.5%, compared with 14% in the corresponding quarter last year, supported by improved operating leverage and a favourable product mix.
Saharsh Davuluri, chief executive officer and managing director, Neuland Laboratories added ?Q1 FY27 was broadly in line with our expectations with encouraging performance from both CMS & GDS businesses and represents a good start to the year. While Commercial Products contributed to most of the revenue, we are seeing exciting developments in terms of the pipeline projects.
The depth of customer conversations today is significantly stronger, and we are increasingly engaging on broader capability-led discussions rather than individual projects alone. Internally our focus now is on ensuring that we deliver consistently, build customer confidence and establish the foundation for longterm partnerships. Even as we have invested significantly over the last three years and all our significant capex projects are proceeding according to plan, I believe the intensity of our investments will further increase based on the opportunities that available to us.?
Meanwhile, Neuland Laboratories and Gland Pharma have entered into a long-term strategic contract development and manufacturing organization (CDMO) partnership to address the growing global demand for sterile active pharmaceutical ingredients (APIs) used in microparticle depot products and other complex sterile APIs. As part of the collaboration, Gland Pharma will establish a dedicated sterile manufacturing suite for these products, combining Neuland's expertise in complex API development, process chemistry and custom manufacturing with Gland Pharma's sterile manufacturing capabilities and strong regulatory compliance track record.
In connection with the partnership, Neuland Laboratories' board has approved the execution of a corporate guarantee of Rs 40 crore in favour of Gland Pharma to support the company's obligations under a proposed Loan Licence Agreement. The agreement will facilitate the establishment of the dedicated manufacturing facility and the associated capital expenditure for producing the specified products.
Additionally, the company's board approved the expansion of manufacturing capacity at Unit 1 in Bonthapally Village, Gummadidala Mandal, Sangareddy District, Telangana. The facility is currently operating at 91% capacity utilisation, with an installed capacity of 276.5 kiloliters (KL). The company plans to add 18 KL of capacity through an investment of Rs 39.8 crore to meet growing customer demand.
Neuland Laboratories is a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates, and custom manufacturing solutions to customers in approximately 80 countries.
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