Neuland Labs. Q2 FY27 Results (NSE: NEULANDLAB)
Signal: Revenue declined
The read
Q2 marked a sharp sequential reset, with revenue falling 29.7% QoQ to ₹457.2 Cr and EBITDA margin contracting 1267bps QoQ to 22.9% on stated operating deleverage, but H1 remained ahead with revenue up 35.6% to ₹1,107.2 Cr and EBITDA margin at 30.3%; the thesis now depends on commercial CMS growth and peptide investments converting into steadier quarterly execution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹457.2 Cr | -11.4% | -29.7% |
| Net profit | ₹51.1 Cr | -47.0% | |
| EPS | ₹39.9 | -47.0% | |
| EBIT margin | 22.9% |
P&L walk
Standalone Q2 revenue declined 11.4% YoY and 29.7% QoQ to ₹457.2 Cr, while EBITDA fell 33.4% YoY to ₹104.6 Cr and margin contracted 754bps to 22.9% on operating deleverage; PAT fell 47.0% to ₹51.1 Cr, although H1 revenue rose 35.6% and H1 EBITDA margin reached 30.3%.
Key positives
- H1 revenue rose 35.6% YoY to ₹1,107.2 Cr and H1 EBITDA increased 68.6% to ₹335.6 Cr despite the Q2 slowdown.
- Working capital days improved to 104 in H1FY27 from 155 in H1FY26, a 51-day reduction driven largely by lower inventory and receivable days.
- The new peptide manufacturing facility was inaugurated, while management cited a growing pipeline of upcoming projects and strong RFP activity.
- Two DMFs were filed in Q2FY27 for Fezolinetant and Ivacaftor, extending the regulatory pipeline.
Key concerns
- Q2 revenue fell 11.4% YoY to ₹457.2 Cr and 29.7% QoQ, indicating high quarter-to-quarter execution volatility despite H1 growth of 35.6%.
- EBITDA margin compressed 754bps YoY to 22.9% and 1267bps QoQ, with the company explicitly attributing the decline to operating deleverage.
- Q2 PAT fell 47.0% YoY to ₹51.1 Cr and diluted EPS fell 47.0% to ₹39.9, reversing the strong Q1 profitability level.
Research and educational content only. Not investment advice.