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Neuland Laboratories Q4 FY2025 Results : Shares Fall on May 16, 2025

Written by: Team Angel OneUpdated on: May 16, 2025, 5:10 PM IST
Neuland Labs shares dropped after weak Q4 results, but the company and analysts remain optimistic about strong growth in FY26.
Neuland Laboratories Q4 FY2025 Results : Shares Fall on May 16, 2025
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Following a weak Q4 FY25 results, shares of Neuland Laboratories fell as much as 11% on May 16, 2025. The company reported a 59% year-on-year decline in net profit and a 15% drop in revenue for the March quarter. Despite the downturn, Neuland Labs affirmed that its growth trajectory is expected to resume in FY26, with continued visibility on both short- and long-term opportunities.

Neuland Laboratories Q4 FY25 Results

  • Net profit dropped to ₹27.8 crore, down 59% YoY
  • Revenue stood at ₹328 crore, a 15% decline from ₹385 crore in Q4 FY24
  • EBITDA fell 52% YoY to ₹51.1 crore
  • EBITDA margin contracted to 16% from 27.8% last year

FY25 Performance and CMS Revenue Insights

Neuland reported a full-year decline in topline revenue and a contraction in operating margins, aligning with prior expectations.

  • CMS (Custom Manufacturing Solutions) revenue reached ₹637 crore, supported by commercial-stage molecules
  • Customer base expanded despite lower revenues

Also Read: Tata Motors, Tata Steel: Which Tata Group Company Delivered Highest Growth in Q4FY25 Earnings?

FY26 guidance and Goldman Sachs forecast

The company expects a rebound in FY26, driven by capacity expansion and new molecule launches.

  • Goldman Sachs maintains a 'Buy' rating with a target price of ₹14,775
  • Projected 30% YoY revenue growth in FY26E
  • Key drivers include Unit III ramp-up, commercialisation of Cobenfy and a fourth molecule, and new Specialty API launches

Neuland Laboratories Share Price

On May 16, 2025, shares of Neuland Laboratories (NSE: NEULANDLAB) opened at ₹11,050, lower than its previous close at ₹11,859. At 4 PM, the share price of Neuland Laboratories was trading at ₹11,040, down by 6.91% on the NSE.

Conclusion

While Neuland Laboratories faces short-term headwinds, including reduced profitability and revenue, the company’s strategic investments and product pipeline suggest a promising FY26. Analysts remain optimistic about its long-term growth potential, supported by strong fundamentals and expansion plans.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: May 16, 2025, 5:10 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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