Synopsis: Two ace investors’ favourite pharma ingredient maker posts its best-ever quarter, with revenue more than doubling and profits jumping over six times.
Shares of pharma ingredient maker jumped nearly 7% after the company reported its best-ever quarterly performance in Q4FY26. Ace investors Vijay Kedia, who holds a 1.01% stake, and Mukul Agarwal, who holds a 3.12% stake, are among the well-known names backing this stock. The Hyderabad-based company, which makes drug ingredients for pharma companies worldwide, saw its revenue and profits surge on the back of strong demand from its contract manufacturing business.
With a market cap of Rs. 21,348 Crore, the shares of Neuland Laboratories Ltd. are trading at a price of Rs. 16,550 per share i.e. 2.66% down from its previous closing price of Rs. 17,003. In Wednesday’s trading session it went up to Rs. 18,300 i.e. approx 7.5% up from its previous closing price. It currently trades at P/E of 58.1.
Q4FY26: Revenue More Than Doubles
Neuland Laboratories earned total revenue of Rs. 788.7 crore in Q4FY26, which is more than double the Rs. 335.8 crore it earned in the same quarter last year. Compared to the previous quarter (Q3FY26), revenue was up 76.1% from Rs. 447.8 crore. The main reason for this jump was its contract manufacturing business, where it makes specialised drug ingredients exclusively for global innovator pharma companies. This segment alone brought in Rs. 488 crore in Q4FY26, compared to just Rs. 104 crore in Q4FY25.
Operating Profits Hit a Record 40.5% Margin
When a company earns more revenue without spending proportionally more, its operating profit margin goes up – and that is exactly what happened here. Neuland’s operating profit (EBITDA) jumped to Rs. 319.4 crore in Q4FY26 from just Rs. 58.2 crore a year ago, a rise of 448.6%. More strikingly, the operating margin expanded to 40.5% from 17.3% a year ago. In simple terms, for every Rs. 100 the company earned in revenue, it kept Rs. 40 as operating profit – a level that most pharma companies would envy.
Net Profit Jumps Over Six Times
The bottom line tells an equally impressive story. Neuland’s net profit for Q4FY26 stood at Rs. 212.5 crore, up 666.3% from just Rs. 27.7 crore in Q4FY25. The net profit margin came in at 26.9%, compared to 8.3% a year ago. Earnings per share for the quarter were Rs. 165.6, versus Rs. 21.6 in the same quarter last year. The company is also debt-free in a practical sense – it had more cash than debt on its books, with net cash of Rs. 156.8 crore at the end of the quarter.
Full Year FY26: Crosses Rs. 2,000 Crore Revenue Mark
Zooming out to the full year, Neuland crossed a major milestone by earning Rs. 2,053.1 crore in total revenue for FY26, up 37.1% from Rs. 1,497.3 crore in FY25. Annual operating profit grew 76% to Rs. 603.4 crore, while the operating margin improved to 29.4% from 22.9% the previous year. Full year net profit rose 40% to Rs. 363.1 crore. The company also spent Rs. 397 crore on building new facilities during the year, including a peptide manufacturing plant and a new research centre in Hyderabad.
GDS Segment: Some Bright Spots, Some Weakness
Neuland also sells drug ingredients to generic pharma companies under its Generic Drug Substance (GDS) business. Within this, Ezetimibe – a cholesterol-lowering drug ingredient – and Mirtazapine were the key products driving the Prime sub-segment, and Ezetimibe is expected to continue growing. The Specialty sub-segment was a bit weak because of lower demand for Paliperidone, though other products like Apixaban, Donepezil, and Aripiprazole Sterile helped partially offset this. The company also filed regulatory documents for two new drug ingredients – Vonoprazan and Edoxaban – during FY26.
About the Company
Neuland Laboratories Limited, incorporated in 1984 and headquartered in Hyderabad, makes active pharmaceutical ingredients (APIs) and provides contract drug manufacturing services to pharma companies in over 80 countries. It operates three manufacturing facilities with a combined reactor capacity of 12,26,000 litres and has around 2,188 employees, of whom 434 work in research and development.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Stock held by Vijay Kedia and Mukul Agarwal jumps 7% after announcing its Q4 results appeared first on Trade Brains.