Neuland Laboratories Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 449.66 Cr (-12.56% YoY) and PAT growth of -46.70% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 449.66 Cr (-12.56% YoY) |
| PAT (Q2) | Rs. 51.62 Cr (-46.70% YoY) |
| EBITDA margin | 21.34% (-880 bps YoY) |
| EPS (Q2) | Rs. 40.24 (-46.69% YoY) |
Q2 FY27 was a weak quarter — revenue fell 12.56% YoY, PAT fell 46.70%, and EBITDA margin of 21.34% dropped below management's 25%+ benchmark on fixed-cost deleverage and peptide ramp costs. The H1 picture remains intact with 35.22% revenue growth, 1.81x CFO/PAT cash conversion, and a Rs.211.23 Cr net-cash balance sheet, keeping the ~20% FY27 revenue target on track but with a narrower cushion.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue YoY | "the YoY comparison remain strongly positive while the QoQ direction stays a coin-flip" | Revenue −12.56% YoY; −29.91% QoQ — YoY); the decline branch of the QoQ coin-flip played out | Contradicted |
| Margins | "likely normalizing from an exceptionally high base, not compressing" (25–30% band) | EBITDA margin 21.34% (company denominator) vs 30.14% year-ago — below the band | Contradicted |
| FX | "Modest translation tailwind" (rupee ~1.2% QoQ depreciation, per pre-call note, web-sourced) | Unrealised net forex gain Rs.3.65 Cr in H1 (cash-flow recon); USA revenue −9.36% YoY — FX not isolated in the filing | Partially |
| Input costs | "peers disclosed elevated raw-material and solvent costs" (generic headwind) | Materials −5.21% YoY on −12.56% revenue; materials ratio up ~370 bps YoY | Played out directionally |
| Peptide ramp drag | "Module 1 adding depreciation and ramp costs before meaningful revenue" | D&A +27.64% YoY; Module 1 live Sep 15 | Played out |
| Peptide conversion | "engagement-level rather than revenue-level" | Filing silent on peptide contracts/revenue | Not observable |
| Tariffs | "Net contained, watch item" | No tariff reference in the filing | Not observable |
| Watch: margin bridge; peptide conversion; WC days; new capex; 483 residuals; CMS split | watch-list | Margin 21.34% (addressed by numbers); WC improving (proxies); Rs.47.1 Cr Domadugu land capex approved; peptide contract status and CMS split not addressed in the filing — remain open for the call | Mixed |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA margin 25%+ ("anything above a bonus") | management commentary on prior earnings calls (long-term benchmark) | Q2: 21.34% on the company's total-income basis (21.70% on revenue); H1: 28.94% | Missed this quarter; On Track on H1 basis |
| Revenue ~20% for FY27 & FY28; 18–20% 5-yr CAGR | Q4 FY26 and Q1 FY27 (Aug 5, 2026) earnings calls | H1 +35.22% YoY (Q2 alone −12.56%) — H1 basis | On Track |
| ≥1 commercial peptide NCE arrangement in FY27 | Q4 FY26 call; reaffirmed on the Aug 5, 2026 call | No contract disclosure in this filing | Too Early |
| Peptide Module 1 operational (July 2026, later "within a month" of Aug 5) | Q4 FY26 call; Aug 5, 2026 call | Declared operational Sep 15, 2026 ($30 Mn, 7,000 L) — with ~2-month slippage vs July | Met |
| Working-capital normalization from 137 days | Q4 FY26 call | Receivables −45.64% vs March; DSO proxy 58.9 days — proxy evidence; KPI value not re-disclosed | On Track |
| Unit 1 +18 KL within 6–7 months of Aug 5, 2026 | company disclosure of Aug 5, 2026 | Not addressable in this filing | Too Early |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.