Neuland Labs Posts Stellar Profit Growth, Margins Leap
The API maker's quarterly profit jumped nearly tenfold year-on-year, though revenue and earnings dipped sequentially from a strong Q4.
Neuland Laboratories reported a staggering 974.8% year-on-year jump in profit for Q1 FY27, with revenue more than doubling. Margins expanded dramatically from a low base a year ago.
Neuland Laboratories delivered a powerhouse year-on-year performance for the quarter ended June 2026, with profit surging nearly tenfold. This explosive growth was driven by a more than doubling of revenue and a dramatic expansion in profitability, marking a stark turnaround from a subdued quarter a year ago. However, the results softened compared to the immediately preceding quarter, indicating some normalization from a particularly strong finish to the prior fiscal year.
The company's revenue for Q1 FY27 stood at ₹641.58 crore, a 119.2% increase from ₹292.75 crore in Q1 FY26. Profit after tax soared to ₹147.36 crore, up a staggering 974.8% from ₹13.71 crore. This profit growth far outpaced the top-line increase, reflecting a massive improvement in net profit margin, which expanded to 23.0% from just 4.7% a year ago.
Sequentially, both revenue and profit moderated from the high base of Q4 FY26. Revenue declined 17.3% from ₹776.25 crore, while profit fell 30.7% from ₹212.52 crore. The net profit margin also eased from 27.4% in the March quarter. The trailing twelve-month (TTM) net profit margin remains healthy at 20.9%, supported by strong annual performance.
The recent quarterly trajectory shows the company's earnings power has fundamentally reset higher over the past year.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 641.58YoY +119% | 776.25 | 292.75 |
| Profit (₹ Cr) | 147.36YoY +975% | 212.52 | 13.71 |
| Net Profit Margin | 23.0%YoY +389% | 27.4% | 4.7% |
Key Points
- The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.1 and a strong Return on Equity (RoE) of 21.43%.
- The stock has significantly outperformed the market, delivering a 68.2% return over the past year and a 475.2% return over three years.
- At a P/E of 42.3, the stock trades at a premium to its industry average P/E of 37.2, reflecting the market's high expectations following this period of hyper-growth.
The key question for Neuland is whether it can sustain these elevated margin levels as it navigates the typical quarterly volatility in its business.
Live Chart
· NEULANDLAB
(BSE)
ISIN: INE794A01010
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.