Sun Pharmaceutical Industries Ltd.
NSE: SUNPHARMA
Healthcare · Drug Manufacturers - Specialty & Generic
₹1,748.00 last close on 23 Oct 2026 −0.57%
Research updated
Neuland Laboratories Ltd.
NSE: NEULANDLABHealthcareDrug Manufacturers - Specialty & Generic
- Last close
- ₹18,865.00
- Day change
- −₹70.00 (−0.37%)vs
- Market cap
- ₹25,602 crIndian rupees
- Research updated
- 1 report
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About Neuland Laboratories
Neuland Laboratories Ltd. is a distinguished pharmaceutical company specializing in the manufacturing of active pharmaceutical ingredients (APIs) predominantly for generic drugs. Established in 1984 and headquartered in Hyderabad, India, Neuland plays a crucial role in the global pharmaceutical supply chain by providing vital ingredients used by major drug manufacturers. The company focuses on the production of high-quality APIs and small molecule manufacturing services, serving therapeutic categories such as cardiovascular, central nervous system, antidiabetic, and anti-infective drugs. Neuland Laboratories is highly regarded for its robust research and development capabilities, as well as its adherence to stringent quality control measures that comply with international regulatory standards, including those set by the US Food and Drug Administration (FDA) and the European Medicines Agency (EMA). With a strong emphasis on innovation and sustainability, Neuland Laboratories Ltd. continues to contribute significantly to health care industries worldwide by ensuring a steady supply of critical pharmaceutical ingredients. Its strategic market positioning underscores its role as a vital partner in the development and production of essential medications globally.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - Specialty & Generic
- Listing
- NSE: NEULANDLAB
- Next results
- Chief executive
- Mr. Davuluri Saharsh Rao
- Employees
- 2,183
- Headquarters
- Hyderabad, India
- ISIN
- INE794A01010
- Website
- neulandlabs.com
Public research · Report of
Business model & financial foundation
Neuland Laboratories (NSE: NEULANDLAB), Active pharmaceutical ingredients and pharmaceutical CDMO: revenue of ₹2,023 crore in FY26 (+37.0% on FY25), an EBITDA margin of 28.4%, net profit of ₹364.0 crore and net cash of ₹158.4 crore.
- Revenue, FY26 (₹ crore)
- 2,023
- consolidated
- Revenue growth, FY26
- +37.0%
- on FY25
- EBITDA margin, FY26
- 28.4%
- EBITDA (excl. other income, computed) / revenue
- Net profit, FY26 (₹ crore)
- 364.0
- to owners
- Return on equity, FY26
- 21.4%
- on average equity
- Net debt, FY26 (₹ crore)
- -158.4
- Net debt (borrowings less cash, bank and current investments)
- Market capitalisation (₹ crore)
- 29,028
- at the close of 15 Oct 2026
Company profile
Hyderabad-headquartered pure-play API development and manufacturing partner to pharmaceutical and biotechnology customers. Generic Drug Substances supplies non-exclusive prime and specialty APIs; Custom Manufacturing Solutions provides exclusive NCE API and advanced-intermediate development, clinical supply and commercial manufacturing. Small-molecule and peptide chemistry, process scale-up and regulatory execution underpin the industrial business; it does not compete with customers in finished formulations.
| Item | Value |
|---|---|
| Legal name | Neuland Laboratories Limited |
| Exchange and ticker | NSE: NEULANDLAB; BSE: 524558 |
| ISIN | INE794A01010 |
| CIN | L85195TG1984PLC004393 |
| Sector | Healthcare |
| Industry | Active pharmaceutical ingredients and pharmaceutical CDMO |
| Headquarters | Hyderabad, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | M S K A & Associates LLP (FRN 105047W/W101187) |
| Market capitalisation | ₹29,028 crore (15 Oct 2026) |
| Shares outstanding | 1.28 crore shares (FY26) |
| Price | ₹20,200 (close, 15 Oct 2026) |
| 52-week range | ₹11,500 - ₹24,225 (to 15 Oct 2026) |
| Website | https://www.neulandlabs.com |
Corporate structure and shareholding
| Entity | Holding | Business |
|---|---|---|
| Neuland Laboratories Inc., USA | 100% | United States marketing, market development and customer/business support. |
| Neuland Laboratories K.K., Japan | 100% | Japan marketing, market development and customer/business support. |
As of 2026-10-15; FY26 report identifies two wholly owned subsidiaries and no associates/JVs. Overseas business-development presence is not an additional subsidiary. MSKA re-appointed on 2024-07-31 through the 45th AGM in 2029; original appointment date not retrieved. ISIN uses the supplied identifier; report text extraction misrenders it as INE794AO1010.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 32.63% | 32.63% | 32.62% | 32.26% |
| Promoter holding pledged | 0.00% | 2.29% | 2.29% | 2.32% |
| Foreign institutions | 20.90% | 20.46% | 21.08% | 21.93% |
| Domestic institutions | 14.71% | 15.84% | 16.51% | 16.25% |
| of which mutual funds | 10.39% | 11.35% | 12.66% | 12.45% |
| Retail | 31.76% | 31.07% | 29.79% | 29.55% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Neuland Laboratories (NSE: NEULANDLAB, BSE 524558) is a Hyderabad-based pure-play API maker and CDMO with three USFDA/EU-GMP units of 1,226 KL total reactor capacity. It does not make finished formulations, so it does not compete with its customers. It earns in two ways. Custom Manufacturing Solutions (CMS) makes exclusive APIs and intermediates for innovators: 61% of FY26 revenue and 67% of Q1FY27. Generic Drug Substances (Prime and Specialty APIs) are non-exclusive. In FY26, commercial CMS revenue was Rs 1,146 cr and development CMS Rs 98 cr. The derived non-CMS residual was Rs 779 cr on consolidated revenue from operations of Rs 2,023 cr. Concentration is extreme: top-5 CMS customers made up 93% of CMS revenue in FY26 and 96% in Q1FY27. Neuland controls its process chemistry, its plants and its regulatory record. It does not control its customers' launch timing, inventory policy or ordering cadence, so quarters are lumpy: revenue went 293 / 514 / 440 / 776 / 642 cr from Q1FY26 to Q1FY27. The two subsidiaries (USA, Japan) are wholly owned marketing arms, about 1% of revenue.
| Peer | Why the dossier compares them |
|---|---|
| Divi's Laboratories (DIVISLAB) | Large-scale generic APIs and innovator custom synthesis; chemistry/manufacturing and regulated-market comparator, but substantially larger. |
| Laurus Labs (LAURUSLABS) | API and synthesis/CDMO exposure; useful scale-up and capital-intensity comparator, with formulations and biotechnology creating mix differences. |
| Aarti Pharmalabs (AARTIPHARM) | APIs, intermediates and CDMO/CRAMS; relevant chemistry/process-development benchmark, with xanthine and other portfolio differences. |
| Dishman Carbogen Amcis (DCAL) | Innovator development/manufacturing and complex/high-potency chemistry; overseas facilities and financial/asset mix limit direct comparability. |
| Cohance Lifesciences (formerly Suven Pharmaceuticals) (COHANCE) | Innovator CDMO and API platform; deliberate successor-name resolution, but merger-driven perimeter changes require like-for-like caution. |
| Sai Life Sciences (SAILIFE) | Integrated discovery-to-commercial small-molecule CDMO; strong innovator customer and process-development comparator, with discovery-service mix. |
| Anthem Biosciences (ANTHEM) | Innovator CRDMO and complex chemistry/fermentation; comparable development-to-commercial outsourcing, with biologics/specialty ingredient mix. |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 923.3 | 1,161 | 1,559 | 1,477 | 2,023 |
| Cost of revenue (vendor classification) * | 553.5 | 613.8 | 733.8 | 750.5 | 947.1 |
| Other operating costs (vendor classification) * | 69.2 | 86.6 | 97.3 | 119.0 | 148.9 |
| EBITDA (vendor classification) * | 142.5 | 276.2 | 472.3 | 340.8 | 597.1 |
| EBIT * | 91.7 | 226.2 | 412.5 | 352.1 | 507.7 |
| Finance costs | 9.53 | 10.4 | 14.0 | 8.30 | 24.0 |
| Profit before tax | 82.2 | 215.8 | 401.4 | 346.3 | 489.0 |
| Tax expense (current + deferred) | 18.3 | 52.2 | 101.4 | 86.2 | 125.0 |
| Profit for the year | 63.8 | 163.5 | 300.1 | 260.1 | 364.0 |
| Diluted EPS (₹) | 49.74 | 127.5 | 233.9 | 202.7 | 283.7 |
| Other income | 12.5 | 20.5 | 30.2 | ||
| COGS (materials consumed + inventory change) | 577.3 | 587.6 | 755.5 | ||
| Employee benefits expense | 257.1 | 272.0 | 341.1 | ||
| Other expenses (manufacturing + other) | 261.7 | 293.9 | 351.8 | ||
| EBITDA (excl. other income, computed) | 462.6 | 323.3 | 574.5 | ||
| Depreciation and amortisation | 59.7 | 65.6 | 91.7 | ||
| Exceptional items | 0.00 | 76.4 | 0.00 | ||
| Non-controlling interest | 0.00 | 0.00 | 0.00 | ||
| Share of associates/JVs | 0.00 | 0.00 | 0.00 | ||
| PAT attributable to owners | 300.1 | 260.1 | 364.0 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity | 840.5 | 994.1 | 1,283 | 1,525 | 1,874 |
| Borrowings (non-current + current, excl. lease liabilities) | 240.5 | 128.5 | 82.5 | 136.0 | 196.6 |
| Cash + other bank balances + current investments | 5.09 | 45.4 | 116.8 | 366.5 | 355.0 |
| Trade receivables | 234.3 | 361.8 | 373.5 | 315.7 | 541.4 |
| Inventories | 265.2 | 279.2 | 350.4 | 385.8 | 510.3 |
| Trade payables (MSME + others) | 117.4 | 171.0 | 192.0 | 252.2 | 269.1 |
| Net property, plant and equipment * | 9.00 | 457.4 | 522.7 | 673.7 | 892.3 |
| Capital work in progress | 20.5 | 42.4 | 67.1 | 44.6 | 209.5 |
| Total assets * | 1,383 | 1,580 | 1,833 | 2,180 | 2,930 |
| Net debt (borrowings less cash, bank and current investments) | -34.3 | -230.5 | -158.4 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash from operating activities | 66.8 | 161.9 | 261.2 | 317.4 | 346.7 |
| Free cash flow (vendor definition) * | -37.3 | 171.1 | 117.5 | 110.9 | -50.5 |
| Dividends paid | -3.85 | -6.41 | -12.8 | -18.0 | -15.4 |
| Purchase of PPE and intangibles (incl. CWIP) | -97.3 | -64.6 | -143.7 | -206.5 | -397.1 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding (fully paid-up equity, year end) | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 310.8 | 398.0 | 328.4 | 292.8 | 514.3 | 439.7 | 776.3 | 641.6 |
| Cost of revenue (vendor classification) * | 159.8 | 205.7 | 172.0 | 152.9 | 229.6 | 243.6 | 321.0 | 269.0 |
| Other operating costs (vendor classification) * | 25.8 | 36.4 | -34.3 | 31.9 | 48.8 | 30.1 | 49.4 | 43.3 |
| EBITDA (vendor classification) * | 66.6 | 146.3 | 55.6 | 42.3 | 157.4 | 85.2 | 319.8 | 231.4 |
| EBIT * | 50.5 | 130.0 | 39.1 | 22.2 | 134.8 | 61.3 | 294.7 | 204.8 |
| Finance costs | 1.06 | 2.22 | 2.35 | 4.58 | 5.37 | 6.79 | 7.21 | 6.97 |
| Profit before tax | 49.4 | 127.8 | 39.3 | 17.6 | 129.4 | 54.5 | 287.5 | 197.9 |
| Tax expense (current + deferred) | 16.6 | 26.2 | 11.5 | 3.67 | 32.6 | 13.9 | 74.8 | 50.2 |
| Profit for the period | 32.8 | 101.6 | 27.8 | 13.9 | 96.9 | 40.6 | 212.7 | 147.7 |
| Diluted EPS (₹) | 25.60 | 79.18 | 21.67 | 10.83 | 75.49 | 31.62 | 165.8 | 115.1 |
| Other income | 4.33 | 3.91 | 7.46 | 7.86 | 1.80 | 8.05 | 12.5 | 8.49 |
| COGS (materials consumed + inventory change) | 117.5 | 166.4 | 126.9 | 113.5 | 183.6 | 189.1 | 269.3 | 221.0 |
| Employee benefits expense | 63.1 | 69.3 | 66.5 | 73.5 | 80.4 | 88.8 | 98.5 | 106.4 |
| Other expenses (manufacturing + other) | 68.1 | 75.7 | 83.9 | 71.3 | 94.8 | 84.7 | 101.2 | 91.2 |
| EBITDA (excl. other income, computed) | 62.2 | 86.6 | 51.1 | 34.5 | 155.6 | 77.1 | 307.3 | 222.9 |
| Depreciation and amortisation | 16.1 | 16.3 | 16.9 | 20.2 | 22.5 | 23.9 | 25.1 | 26.6 |
| Exceptional items | 0.00 | 55.8 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Non-controlling interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Share of associates/JVs | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PAT attributable to owners | 32.8 | 101.6 | 27.8 | 13.9 | 96.9 | 40.6 | 212.7 | 147.7 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 0.6% | 25.7% | 34.3% | -5.2% | 37.0% |
| EBITDA margin | 29.7% | 21.9% | 28.4% | ||
| Net margin | 19.3% | 17.6% | 18.0% | ||
| Return on equity | 26.4% | 18.5% | 21.4% | ||
| Return on capital employed | 8.9% | 20.5% | 33.2% | 23.3% | 27.2% |
| Return on assets | 17.6% | 13.0% | 14.2% | ||
| Net debt (₹ crore) | -34.3 | -230.5 | -158.4 | ||
| Net debt / EBITDA | -0.07x | -0.71x | -0.28x | ||
| Interest cover | 9.62x | 21.7x | 29.5x | 42.4x | 21.2x |
| Asset turnover | 0.68x | 0.78x | 0.91x | 0.74x | 0.79x |
| Receivable days | 93 | 114 | 87 | 78 | 98 |
| Inventory days (on revenue) | 105 | 88 | 82 | 95 | 92 |
| Payable days (on revenue) | 46 | 54 | 45 | 62 | 49 |
| Cash conversion | 0.87x | 1.22x | 0.95x | ||
| Capex intensity | 10.5% | 5.6% | 9.2% | 14.0% | 19.6% |
| Free cash flow (₹ crore) | -30.5 | 97.3 | 117.5 | 110.9 | -50.4 |
| Dividend payout | 4.3% | 6.9% | 4.2% | ||
| EPS, diluted (₹) | 49.74 | 127.5 | 233.9 | 202.7 | 283.7 |
| Book value per share (₹) | 655.1 | 774.8 | 999.8 | 1,188 | 1,461 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (excl. other income, computed) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Net debt (borrowings less cash, bank and current investments); negative is net cash.
- Net debt / EBITDA: net debt / EBITDA (excl. other income, computed).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 15 Oct 2026); market data at the close of 15 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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Report history
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 15 Oct 2026; page updated 25 Oct 2026.
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