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Neuland Laboratories shares tank 11% despite FY26 growth assurance, Goldman optimismNeuland Laboratories expects its growth trajectory to resume in FY26 and says it continues to have visibility on both its short- and long-term growth outlook.By Meghna Sen   May 16, 2025, 10:52:47 AM IST (Updated)2 Min ReadShares of Neuland Laboratories Ltd. fell as much as 11% during Friday's trading session after the company reported weak performance for the March quarter, with both topline and bottomline being lower than the same quarter last year. However, the company gave a positive guidance, saying that growth is expected to resume in FY26.

Net profit for the period decreased by 59% from last year to ₹27.8 crore. Revenue for the quarter stood at ₹328 crore, which is a decline of 15% from ₹385 crore it had reported during the year-ago quarter.

Neuland's EBITDA for the quarter also fell 52% on a year-on-year basis to ₹51.1 crore, while margins contracted to 16% from 27.8% last year.

Q4FY25

Q3FY25

Q4FY24

QoQ

YoY

Revenue (₹ Cr)

328.4

398.0

385.0

-18%

-15%

Opex (₹ Cr)

277.3

311.4

278.1

-11%

0%

EBITDA (₹ Cr)

51.1

86.6

106.9

-41%

-52%Margins (%)

16%

22%

27.8%

-29%

-44%Net Profit (₹ Cr)

27.8

101.6

67.6

-73%

-59%

EPS (₹)

21.67

79.18

52.66

-73%

-59%

The company saw a decline in topline revenue in FY25 compared to FY24. It also reported a decline in operating margins in line with initial expectations for the year.

CMS revenues stood at ₹637 crore, driven mainly by commercial-stage molecules. Despite the revenue decline, the customer base has widened.

Neuland Laboratories expects its growth trajectory to resume in FY26 and says it continues to have visibility on both its short- and long-term growth outlook.

Global brokerage firm Goldman Sachs has a 'Buy' rating on Neuland Labs, with a price target of ₹14,775.

The brokerage expects the topline to accelerate by around 30% year-on-year in FY26E, driven by monetisation of the expanded Unit III to support higher supplies; commercialisation of Cobenfy and a potential fourth molecule; and the launch/approval of newer niche molecules in the Specialty API segment.

Only two analysts have coverage on Neuland Laboratories and both have 'Buy' recommendations on the stock.

Shares of Neuland Laboratories are off the lows of the day but are still trading 7.29% lower at ₹11,005. The stock is down 23% in 2025 so far.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.First Published: May 16, 2025 10:05 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsNeuland LaboratoriesNeuland Labsshare market today