Neuland Laboratories September profit falls 47% on sales decline

Neuland Laboratories Limited reported consolidated profit of Rs 51.625 crore for the quarter ended September 30, 2026, down 47% year on year from Rs 96.8539 crore, as revenue from operations declined 13% to Rs 449.6569 crore. Profit before tax fell to Rs 68.9782 crore from Rs 129.4365 crore.

Why did Neuland Laboratories’ September-quarter profit decline?

Neuland Laboratories’ September-quarter profit declined as revenue from operations fell by Rs 64.6162 crore year on year while total expenses increased by Rs 1.5377 crore. Revenue was Rs 449.6569 crore in the quarter ended September 30, 2026, compared with Rs 514.2731 crore a year earlier, while total expenses were Rs 388.174 crore against Rs 386.6363 crore.

Employee benefits expense rose to Rs 101.7587 crore from Rs 80.3723 crore in the September 2025 quarter. Manufacturing expenses increased to Rs 57.8043 crore from Rs 45.9562 crore, depreciation and amortisation rose to Rs 28.7713 crore from Rs 22.5415 crore, and finance costs increased to Rs 7.3073 crore from Rs 5.3671 crore.

Cost of materials consumed declined to Rs 215.7873 crore from Rs 227.64 crore, while other expenses decreased to Rs 41.4766 crore from Rs 48.7902 crore. Changes in inventories of finished goods and work-in-progress were negative Rs 64.7315 crore in the September 2026 quarter, compared with negative Rs 44.031 crore a year earlier.

How did Neuland Laboratories compare with the June quarter and first half?

Neuland Laboratories’ September-quarter revenue and profit were lower than in the June 2026 quarter. Revenue from operations fell to Rs 449.6569 crore from Rs 641.5771 crore, while profit for the period declined to Rs 51.625 crore from Rs 147.6731 crore. Profit before tax was Rs 68.9782 crore, compared with Rs 197.847 crore in June.

Total income, including other income, decreased to Rs 457.1522 crore from Rs 650.0688 crore sequentially, while total expenses declined to Rs 388.174 crore from Rs 452.2218 crore. Manufacturing expenses moved up to Rs 57.8043 crore from Rs 47.9357 crore and depreciation and amortisation rose to Rs 28.7713 crore from Rs 26.5632 crore, even as employee benefits expense fell to Rs 101.7587 crore from Rs 106.4292 crore.

For the half year ended September 30, 2026, Neuland Laboratories reported revenue from operations of Rs 1,091.234 crore, up from Rs 807.0258 crore in the prior-year half. Half-year profit for the period increased to Rs 199.2981 crore from Rs 110.7539 crore, while profit before tax rose to Rs 266.8252 crore from Rs 147.0069 crore. Basic and diluted earnings per share, or EPS, for the half year were Rs 155.34, compared with Rs 86.32; the company said quarterly EPS is not annualised.

Which markets shaped Neuland Laboratories’ revenue movement?

Neuland Laboratories’ September-quarter revenue declined across India, Europe, and USA and North America, while rest-of-the-world revenue increased year on year. Europe remained the largest geography at Rs 200.0981 crore, ahead of USA and North America at Rs 128.8754 crore, India at Rs 78.2297 crore, and rest of the world at Rs 42.4537 crore.

India revenue fell to Rs 78.2297 crore from Rs 172.087 crore in the September 2025 quarter and from Rs 83.2638 crore in the June 2026 quarter. Europe revenue was higher than Rs 162.4292 crore a year earlier but lower than Rs 303.4581 crore in June. USA and North America recorded Rs 128.8754 crore, compared with Rs 142.1834 crore a year earlier and Rs 199.6736 crore sequentially.

For the half year ended September 30, 2026, Europe revenue increased to Rs 503.5562 crore from Rs 256.8415 crore, and USA and North America revenue rose to Rs 328.549 crore from Rs 207.9671 crore. India revenue decreased to Rs 161.4935 crore from Rs 271.0132 crore, while rest-of-the-world revenue increased to Rs 97.6353 crore from Rs 71.204 crore.

Neuland Laboratories identifies one reportable segment, manufacture of active pharmaceutical ingredients and allied services. Its consolidated non-current assets were Rs 1,639.7053 crore at September 30, 2026, compared with Rs 1,447.0089 crore at March 31, 2026, including Rs 1,623.7884 crore of segment non-current assets in India.

What do Neuland Laboratories’ cash flow, balance sheet and land plan show?

Neuland Laboratories generated net cash flow from operating activities of Rs 361.5605 crore in the half year ended September 30, 2026, compared with an outflow of Rs 36.7468 crore in the prior-year half. Cash generated from operating activities before income taxes was Rs 434.4211 crore, against Rs 3.1758 crore, with a Rs 246.0884 crore reduction in trade receivables reported within working-capital movements.

The receivables movement was partly offset by a Rs 41.8138 crore increase in inventories, a Rs 58.7442 crore decrease in trade payables, and a Rs 16.8765 crore decrease in other liabilities. Net cash used in investing activities rose to Rs 369.9167 crore from Rs 52.195 crore, including Rs 260.5989 crore spent on property, plant and equipment and other intangible assets.

Cash and cash equivalents stood at Rs 53.6554 crore on September 30, 2026, down from Rs 76.6704 crore at March 31, 2026. Total consolidated assets increased to Rs 3,029.5583 crore from Rs 2,930.1377 crore, while combined current and non-current borrowings increased to Rs 239.2038 crore from Rs 196.6131 crore.

On November 3, 2026, Neuland Laboratories’ board approved capital expenditure of about Rs 47.1 crore, including goods and services tax and related expenditure, to acquire six acres of land at Domadugu Village in Sangareddy District, Telangana. The company said internal accruals would fund the acquisition and identified future capacity expansion as its rationale; it disclosed no proposed capacity addition or timetable.

Conclusion

Neuland Laboratories’ September-quarter results combined a 13% year-on-year revenue decline with higher employee, manufacturing, depreciation and finance costs, resulting in a 47% fall in profit to Rs 51.625 crore. The quarter contrasted with the first half, when revenue increased to Rs 1,091.234 crore and profit rose to Rs 199.2981 crore, led by higher Europe and USA and North America revenue.

Next, investors can watch the company’s execution of its about Rs 47.1 crore Domadugu land acquisition, which management linked to future capacity expansion and intends to finance through internal accruals. The filing does not state the capacity to be added or the period for completing it, leaving both matters unresolved.