Neuland Labs drops after Q4 PAT slumps 59% YoY to Rs 28 cr

On quarter on quarter (QoQ) basis, the company's net profit declined 72.63% while revenue fell 17.5% in Q4 FY25.

Profit before tax (PBT) dropped 57.4% YoY to Rs 39.30 crore in Q4 FY25.

During the quarter EBITDA stood at Rs 58.2 crore, registering de-growth of 48.1% compared with Rs 112.2 crore posted in the same quarter last year. EBITDA margin reduced 1,140 bps to 17.3% in Q4 FY25 as against 28.7% in Q4 FY24.

Total expenses fell 0.55% to Rs 296.52 crore in Q4 FY25 as compared with Rs 298.16 crore in Q4 FY24. Cost of material consumed stood at Rs 141.24 crore (down 19.28% Yoy), employee benefit expenses were at Rs 66.45 crore (down 6.35% YoY), finance cost stood at Rs 2.34 crore (down 35% YoY), while manufacturing expenses stood at Rs 45.09 crore (up 3.09% YoY ) during the period under review.

On full year basis, the company's consolidated net profit declined 13.3% to Rs 260.11 crore on 5.2% fall in revenue from operations to Rs 1,476.84 crore in FY25 over FY24.

Sucheth Davuluri, vice-chairman and chief executive officer of the company said, 'We saw marginal decrease in topline in FY25 as compared to FY24, which is further reflected in terms of the decline in operating margins. Nevertheless, these results are in line with our initial outlook at the start of the year regarding our expectations for FY25. During the course of the year we have committed to making investments which will significantly drive our growth in the medium and long term. Neuland continues to be recognized for its capabilities and quality track record, and we have good visibility on short and long term growth.'

Saharsh Davuluri, vice chairman and managing director, Neuland Laboratories added, 'The CMS revenues of Rs 637 crore were largely driven by molecules in the commercial segment. Even though the revenues have declined this year, we continue to see good traction in business from a wider range of customers Our peptide investment plan is on track. We continue to garner more projects in this space which further validates our excitement about the opportunities that the segment holds. At an overall level, we have molecules in our portfolio which are currently at the take off stage, therefore we expect our growth trajectory to resume in FY26.'

Meanwhile, the company's board recommended payment of final dividend of Rs 12 per share on a face value of Rs 10 each, for the financial year 2024-25. The dividend will be paid on or after five days from the date of declaration of the final dividend by the shareholders at the 41st Annual General Meeting (AGM). The company has fixed the record date as 18 July 2025.

The company's board has approved the convening of the 41st AGM of the shareholders on Wednesday, July 30, 2025.

Neuland Laboratories is a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates, and custom manufacturing solutions to customers in approximately 80 countries.

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