Neuland Laboratories Q1 FY27 Results (NSE: NEULANDLAB)
Signal: Margin expansion
The read
The key inflection is a second consecutive quarter of margin expansion after Q2FY26's 30% OPM, with Q1FY27 EBITDA margin at 36.1% versus 12% a year earlier; however, the sequential decline from Q4FY26's 40% margin and 17.4% revenue contraction show that the elevated run-rate still needs confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹641.58 Cr | +119.1% | -17.4% |
| EBIT | ₹2.05 Cr | N/A | |
| Net profit | ₹147.67 Cr | +962.4% | |
| EPS | ₹115.1 | +962.8% | |
| EBIT margin | 36.1% |
P&L walk
Revenue increased to ₹64,157.71 lakh, +119.1% YoY but -17.4% QoQ, while EBITDA margin was 36.1%, +2410bps YoY but -390bps QoQ; the YoY recovery was supported by a 19.5pp reduction in raw-material intensity, while Europe and North America drove the geographic growth.
Segments
Europe and USA/North America were the growth engines, rising 221.4% and 203.5% YoY respectively, while India declined 15.8%; the consolidated result is nevertheless almost entirely parent-generated because standalone PAT of ₹14,736.19 lakh was only ₹31.12 lakh below consolidated PAT.
Key positives
- Revenue increased 119.1% YoY to ₹64,157.71 lakh, led by Europe at ₹30,345.81 lakh, up 221.4%, and USA/North America at ₹19,967.36 lakh, up 203.5%.
- Gross margin expanded 432bps YoY to 65.6% as raw-material intensity fell 19.5pp to 35.7% of revenue; the filing does not disclose the driver.
- EBITDA margin expanded 2410bps YoY to 36.1%, the second consecutive quarter of margin expansion in the prior-results series.
- The proposed 18 KL Unit 1 capacity addition is targeted within 6-7 months against existing utilisation of 91%, supporting demand growth.
- The Gland Pharma partnership is designed to add approximately 1400 kg of annual sterile API capacity through a dedicated suite.
Key concerns
- Revenue declined 17.4% QoQ to ₹64,157.71 lakh and EBITDA margin fell 390bps QoQ to 36.1% from 40% in Q4FY26, indicating quarterly volatility.
- India revenue declined 15.8% YoY to ₹8,326.38 lakh, even as international geographies drove the consolidated recovery.
- Finance costs rose 52.1% YoY to ₹697.19 lakh, although they declined 3.2% QoQ.
Research and educational content only. Not investment advice.