Neuland Laboratories Limited — PPTs, 31-07-2025: Investor Presentation

**Financial Highlights:**

Q1FY26 saw total income at Rs. 300.6 Cr (-32.4% YoY), EBITDA at Rs. 42.1 Cr (14% margin), and PAT at Rs. 13.7 Cr. Working capital days increased to 145 due to inventory. Management, while noting a "below par" Q1, anticipates healthy full-year growth, maintaining a net cash position.

**Strategic Initiatives & Growth Drivers:**

Planned investments are underway, notably a Rs. 254 Cr capex to expand peptide synthesizer capacity from 0.5 KL to 6.37 KL, targeting the high-growth peptide API market (22.4% CAGR). Focus remains on cost optimization and a strategic shift to higher-margin Specialty/CMS segments.

**Business Developments:**

Unit-2 received EIR post FDA inspection in Q1. CMS saw growth in new project orders for current and next fiscal years, with increasing biotech interest. Key GDS molecules included Mirtazapine, Ezetimibe, Escitalopram (Prime) and Dorzolamide (Specialty).

**Market Position & Competitive Advantage:**

With 40 years' experience, extensive reactor volume across 3 cGMP facilities, and expertise in complex chemistries, the company serves over 80 countries. Its strong global regulatory track record (990+ DMFs, 17 USFDA inspections cleared) reinforces its competitive edge.

**Investor Implications:**

Despite a weak Q1FY26, management's positive full-year outlook and strategic investments in high-growth areas like peptides suggest positive long-term growth potential. Execution on capacity utilization and future order flow will be key for investors.