The company reported a net profit of ₹148 crore for the quarter ended June 30, 2026, compared with ₹14 crore in the corresponding period last year.
Revenue from operations more than doubled during the quarter, rising to ₹641.5 crore from ₹292.7 crore a year earlier. The strong growth reflects improved performance across the company’s business segments and higher contribution from its key offerings.
Operating profitability also strengthened significantly during the period. Earnings before interest, tax, depreciation and amortisation (EBITDA) surged to ₹222.7 crore from ₹34.4 crore in the year-ago quarter.
As a result, EBITDA margin expanded sharply to 34.7% from 11.8% in the corresponding quarter last year. EBITDA margin indicates the operating profit generated from every rupee of revenue, and the sharp expansion suggests that earnings grew at a much faster pace than sales during the quarter.
Strong improvement across financial metrics
Neuland Laboratories recorded broad-based improvement across key financial parameters during the quarter.
Revenue increased by more than two times compared with the year-ago period, while EBITDA rose more than six-fold. The increase in operating profit translated into a substantial improvement in profitability, with EBITDA margin expanding by nearly 23 percentage points year-on-year.
The company also reported higher total income, which increased to ₹650.1 crore from ₹300.6 crore in the corresponding quarter last year.
Profit before tax rose to ₹197.5 crore from ₹17.4 crore, while profit after tax stood at ₹147.4 crore compared with ₹13.7 crore in the year-ago period.
The improvement indicates that the company benefited from stronger operating performance, allowing a larger portion of revenue growth to flow through to the bottom line.
CMS and GDS businesses drive performance
Commenting on the quarterly performance, Managing Director and Chief Executive Officer Saharsh Davuluri said the first quarter was broadly in line with the company’s expectations, with encouraging performance from both its Contract Manufacturing Services (CMS) and Generic Drug Substances (GDS) businesses.
Neuland Laboratories operates across the pharmaceutical value chain, including manufacturing active pharmaceutical ingredients (APIs) and providing contract development and manufacturing services to pharmaceutical companies.
The company said commercial products contributed the majority of revenue during the quarter. At the same time, it highlighted positive developments in its project pipeline and stronger customer engagement focused on its broader capabilities rather than individual projects.
CMS businesses typically involve long-term partnerships where pharmaceutical companies outsource development and manufacturing activities, providing companies like Neuland with opportunities for recurring business as products move from development stages to commercial production.
Focus remains on expanding capabilities
The company’s management said it continues to see increasing customer interest in its wider range of capabilities, indicating opportunities beyond individual projects.
Neuland has been investing in strengthening its manufacturing and development capabilities to support growth across APIs, complex molecules and contract manufacturing opportunities.
The strong improvement in the June quarter comes as pharmaceutical companies continue to focus on supply chain diversification and outsourcing partnerships, which have supported demand for specialised manufacturing capabilities.
While the company reported strong earnings growth during the quarter, future performance will depend on the execution of its project pipeline, commercialisation of new opportunities and maintaining operational efficiency.
Shares of Neuland Laboratories ended the session 4.03% higher at ₹20,049 on the NSE on August 5.
