Neuland Laboratories Q2 & H1 FY26 Concall Decoded – A Quarter So Good, Even The CFO Looked Surprised

1. Opening Hook

Just when Dalal Street was busy arguing about whether pharma has “no juice left,” Neuland Labs casually walked in, dropped a64% revenue growth, and walked out like nothing happened. The kind of quarter where analysts stop pretending they understand lumpiness and just nod politely.

And yes—management again repeated the CDMO business is “inherently uneven,” which is corporate code for“Stop asking us for quarterly guidance, please.”

But stick around—because buried under the polite disclaimers are clues about their peptide ambitions, CMS block ramp-up, talent war, and a beautiful fight between volatility and glory. Things get spicy soon.

2. At a Glance

• Revenue up 64%– CFO swears it’s not witchcraft; CMS molecules just behaved for once.
• EBITDA margin 30.4%– Operating leverage arrived like a long-lost cousin finally remembering the address.
• Gross margin 60%– Supply chain gremlins took a tea break.
• PAT up 3x– ₹96.5 crore: Profits decided to stop playing hide-and-seek.
• Working capital 155 days– Inventory hoarding Olympics, gold medal contender.
• Net debt: Negative ₹6.6 crore– Balance sheet hitting monk mode.
• CAPEX ₹91 crore (Q2)– Peptide dreams need concrete, steel, and money.

3. Management’s Key Commentary (Decoded with Sarcasm)

Quote:“Quarterly revenue is the best ever, driven by two commercial CMS projects.”(Translation: Two molecules carried the company harder than a last-over Rohit Sharma cameo 😏)

Quote:“CDMO business is naturally uneven; look at us annually or over 3 years.”(Translation: Please stop asking why Q3 looks different from Q2 every year.)

Quote:“Peptide facility Module-1 will be ready next year, with 2,000-liter reactors.”(Translation: Yes, we’re entering the peptide war. No, we won’t tell you kilo capacity. Don’t ask.)

Quote:“We have adequate capacity for our top products for years.”(Translation: Relax. We won’t run out of reactors mid-quarter.)

Quote:“CMS pipeline is strong; many projects still in development, not in tables yet.”(Translation: Trust us… just because you don’t see them doesn’t mean they aren’t there.)

Quote:“Working capital worsened due to uneven order flow.”(Translation: Customers love ordering everything in the last month—thanks for the stress 🙃)

Quote:“Talent attraction needs culture, infrastructure, and compensation.”(Translation: People don’t stay just for chai and canteen snacks anymore.)

Quote:“Peptide facility total build-out could cost ₹1,000+ crores.”(Translation: This is not a side hobby; it’s a mega project. Bring money.)

4. Numbers Decoded

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Metric                         Q2 FY26        Q2 FY25     Change
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Revenue (₹ Cr)                 516            315         +64%