Neuland Labs Q4 FY26 Earnings Call Transcript Released

Neuland Laboratories Limited has released the transcript of its Q4 and FY26 earnings conference call, which was conducted on May 12, 2026. The call featured insights from Managing Director and CEO Mr. Saharsh Davuluri and CFO Mr. Abhijit Majumdar.

During the call, Mr. Majumdar highlighted that for Q4 FY26, total income reached ₹788.7 crore, a significant increase from ₹335.8 crore in the same period last year, primarily driven by commercial CMS projects. EBITDA stood at ₹319.4 crore with a margin of 40.5%, and profit after tax was ₹212.5 crore, resulting in an EPS of ₹165.6 per share. For the full fiscal year FY26, revenue grew by 37.1% to ₹2053.1 crore, with EBITDA at ₹603.4 crore and a margin of 29.4%. Profit after tax for the year was ₹363.1 crore, and EPS stood at ₹283.01 per share.

Mr. Majumdar also addressed cash flows and working capital, noting a negative free cash flow of ₹49.4 crore for FY26 due to higher working capital and increased capital outflows. Capex outflow for FY26 was ₹397.1 crore. Working capital days increased to 137 days from 107 days in the previous year, mainly due to higher inventories and receivables, which are expected to normalize in FY27. The company emphasized its focus on improving cash conversion through collections, inventory normalization, and tighter controls, alongside cost and process improvements for sustainable profitability.

Mr. Saharsh Davuluri discussed the company's outlook, confirming that FY26 was a year of strong growth as anticipated. He noted the inherent lumpiness of the business, which can cause quarterly performance to be uneven but does not detract from the long-term growth trajectory. The company is investing in large-scale peptide commercial facilities and an R&D center to strengthen its capabilities and pursue more differentiated opportunities. The outlook for the next 2 to 3 years remains promising, driven by the existing pipeline, with groundwork being laid for growth beyond this horizon. Business development efforts are focused on improving the quality and maturity of opportunities in the pipeline, with an emphasis on larger and more complex programs. The company anticipates continued lumpiness in growth over the next 2 to 3 years, advising assessment of performance over a longer horizon of 10 to 12 quarters.

The call also touched upon the company's peptide business, highlighting investments in manufacturing infrastructure and R&D. Regarding potential capability gaps in emerging modalities like ADCs, Mr. Davuluri indicated that while peptides are a significant opportunity, the company may explore adjacencies like linkers for ADCs and potentially strategic acquisitions in the future. The management also clarified that the leadership transition with Mr. Saharsh Davuluri taking over as CEO and MD from Sucheth, who became Vice Chairman, was a pre-planned transition aimed at role clarity and separation of responsibilities.