Hyderabad-based Neuland Laboratories Limited reported a 47% year-on-year fall in standalone profit after tax to ₹51.1 crore for the quarter ended 30 September 2026 (Q2 FY27), as total income slipped 11.4% to ₹457.2 crore. The API and contract manufacturing company announced the results on 3 November 2026 and said first-half growth remains on plan.
Neuland Labs Q2 FY27 results at a glance
According to the company’s press release filed with the stock exchanges, lower revenue on a largely fixed cost base squeezed profitability in the quarter (operating deleverage, in the company’s words).
- Total income: ₹457.2 crore, down 11.4% from ₹516.1 crore a year earlier and 29.7% lower than Q1 FY27
- EBITDA: ₹104.6 crore, down 33.4%, with the margin narrowing to 22.9% from 30.4%
- Profit after tax: ₹51.1 crore, against ₹96.5 crore in Q2 FY26
- Diluted EPS: ₹39.9, compared with ₹75.2 a year ago
- Capex cash outflow: ₹261 crore, mainly for a new R&D centre and a peptide block
On a consolidated basis, the exchange filing showed revenue from operations of ₹449.7 crore, down 12.5%, and net profit of ₹51.6 crore. The first half tells a different story: H1 FY27 standalone income rose 35.6% to ₹1,107.2 crore and profit after tax climbed 80.2% to ₹198.5 crore, helped by an unusually strong first quarter.
Why Neuland’s margins came under pressure
Commercial custom manufacturing solutions (CMS) projects, Neuland’s CDMO business, still contributed the majority of revenue, but the timing of molecule shipments left the quarter lighter. On the earnings call, management pointed to a less favourable product mix and higher input costs, with conflicts in different parts of the world driving volatility in some raw material prices and raising freight and logistics costs.
“While we have experienced a dip in performance this quarter, H1 FY27 was largely in line with plan and our growth expectations remain intact for FY27 and the following year,” said Saharsh Davuluri, Chief Executive Officer and Managing Director, Neuland Laboratories. He added that commercial CMS molecules continue to drive near-term growth, while strong RFP activity and progress with Big Pharma customers support diversification.
Peptide facility, Kakinada land and new DMFs
Neuland used the quarter to build capacity for its next phase of growth. The company inaugurated its new peptide manufacturing facility, citing a growing pipeline of projects, and acquired about 134 acres of land in Kakinada, Andhra Pradesh, as a base for long-term expansion. It also filed two Drug Master Files (DMFs), for fezolinetant and ivacaftor.
The peptide push mirrors moves across Indian manufacturing, where Granules India is scaling its peptide CDMO unit for innovator clients.
What it means for India’s API and CDMO sector
Neuland’s dip stands out in a Q2 FY27 season where contract manufacturing has mostly lifted earnings. Laurus Labs posted a 126% profit jump on CDMO revenue, while Piramal Pharma returned to profit as CDMO sales rose 36%. The contrast shows how lumpy project-based CDMO revenue can be for mid-sized API makers that depend on a few commercial molecules.
For sourcing and manufacturing leaders, the signals to watch are the ramp-up of the peptide block, the conversion of RFPs into commercial contracts and the pace of build-out at Kakinada.
Key takeaways
- Neuland Labs’ Q2 FY27 standalone profit fell 47% to ₹51.1 crore as total income dropped 11.4% to ₹457.2 crore.
- EBITDA margin narrowed by about 750 basis points to 22.9%, but H1 FY27 profit was still up 80%.
- A new peptide facility, 134 acres in Kakinada and two DMF filings set up the company’s next growth phase.
FAQ
What were Neuland Laboratories’ Q2 FY27 results?
Neuland reported standalone total income of ₹457.2 crore, EBITDA of ₹104.6 crore and profit after tax of ₹51.1 crore for the quarter ended 30 September 2026, down 11.4%, 33.4% and 47% respectively.
Why did Neuland’s Q2 FY27 profit fall?
Lower revenue linked to the timing of commercial CMS shipments, a weaker product mix and higher raw material and freight costs reduced margins, the company said.
Source: Neuland Laboratories Q2 FY27 press release (NSE filing, 3 November 2026). Also read: Akums Q2 FY27 Profit Jumps 168% as CDMO Revenue Rises 39%
Featured image: Neuland Laboratories’ new peptide manufacturing facility. Photo: Neuland Laboratories
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