Neuland Laboratories Limited is an India-based company engaged in manufacturing and selling of bulk drugs and caters to both domestic and international markets. Neuland is a leading global API Contract Development and Manufacturing Organization (CDMO) that supports biotechnology and pharmaceutical companies in the design, development, and manufacturing of complex active pharmaceutical ingredients (APIs). The company was incorporated in 1984 and is headquartered in Hyderabad, India.
Over 4 decades, Neuland Labs has been at the forefront of providing end-to-end CDMO services for biotech and pharma clients across 80 countries, with cGMP certifications that include the U.S. FDA, TGA (Australia), EDQM (EU), German Health Authority, ANVISA (Brazil), Cofepris (Mexico), KFDA (Korea), PMDA (Japan), CFDA (China), FSI "SID &GP" Russia, Health Canada, ISO 9001, ISO14001, OHSAS18001, and ISO 27001.
The company has two business verticals: generic drug substances (GDS) and custom manufacturing solutions (CMS). The Prime APIs segment comprises approximately 15 mature large volume APIs in a highly competitive market, with key molecules being Levetiracetam and Mirtazapine.
The company's key molecules include Mirtazapine, an anti-depressant, and Levetiracetam, an anti-epileptic agent, with a product portfolio that includes over 100 APIs across 10 diverse therapeutic areas. The company's APIs are used in various therapeutic areas, including antiasthmatics, cardiovasculars, antifungal, anticonvulsants, central nervous system, fluoroquinolones, antipsychotic, antibacterial, and anti-Parkinson.
The company develops small molecules and peptides for clinical trials and beyond, with the capacity to scale-up through every stage of the product lifecycle to commercial manufacturing. Neuland Laboratories Limited has invested in the niche technology area of Peptides over the last 15 years and has made progress at the Laboratory scale on various projects in the CMS & GDS businesses, with plans to build a new Peptide block with significant peptide manufacturing capacity at its Unit-1.
The company has a market capitalization of ₹15,114 Crore as of June 2025. For the financial year ended March 2025, sales declined 5.24% to ₹1,476.84 Crore from ₹1,558.58 Crore in the previous year. The company reported a net profit of ₹260.11 Crore for FY25 compared to ₹300.08 Crore in FY24, representing a 13% decline.
For Q4 FY25, the company reported revenue of ₹328.36 Crore and net profit of ₹27.81 Crore. Neuland Laboratories Ltd's net profit fell 58.84% since last year same period to ₹27.81 Crore in Q4 FY2024-2025.
CMS (Custom Manufacturing Solutions) revenue reached ₹637 Crore, supported by commercial-stage molecules. CMS Revenue was INR 132 Crore in Q2 FY25, driven by molecules in the commercial segment.
The company's board recommended payment of final dividend of ₹12 per share on a face value of ₹10 each for the financial year 2024-25, to be paid on or after five days from the date of declaration at the 41st Annual General Meeting. The company has fixed the record date as July 18, 2025, with the 41st AGM scheduled for July 30, 2025.
The company plans to fund a Capex of ₹342 Crore through debt and internal accruals and expects the project to be completed by FY27. Neuland Laboratories Ltd has invested in capacity building for existing and new molecules, indicating a commitment to future growth, with a negative net debt position reflecting strong financial management.
The company expects its growth trajectory to resume in FY26, with molecules in the portfolio currently at the take-off stage. Management expects growth in FY26, with more growth coming from CMS due to new molecules. While there are exciting programs in the pipeline, there are a couple of molecules that are one step away from commercialization, which could potentially contribute significantly to revenue starting from 2027.
There is a healthy pipeline of CMS projects, with expectations of commercializing new molecules in FY26, which could drive future growth. The CMS business is expected to grow and could surpass the 55% revenue share mark.
The stock hit a record high of ₹18,089.55 on December 4, 2024. 100% of analysts recommend a 'BUY' rating for Neuland Laboratories Ltd. The company has shown impressive growth with a 14% CAGR in sales and a 66% increase in net profit over five years, with major investors Mukul Agarwal and Vijay Kedia holding stakes in the company.
The company faces uncertainties related to US tariffs, which could impact revenue from its significant US market exposure, as 40% of revenue comes from the US. However, while facing short-term headwinds, the company's strategic investments and product pipeline suggest a promising FY26, with analysts remaining optimistic about its long-term growth potential.
