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

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.

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