Neuland Laboratories shares surge over 11%, hit record high on strong June quarter earnings

Shares of Neuland Laboratories, the global provider of API Contract Development and Manufacturing Organization (CDMO) services provider, surged as much as 11.18% to hit a record high of ₹22,188 on the National Stock Exchange (NSE) after it reported strong June quarter earnings.

On the BSE, Neuland Laboratories shares advanced as much as 11% to touch an intraday high of ₹22,184 amid spike in trading activity.

Neuland Laboratories on Wednesday said that its net profit in April-June period jumped over 10-fold or 962% to ₹148 crore from ₹14 crore in the same period last year.

Its revenue from operations more than doubled to ₹642 crore compared with ₹293 crore a year earlier.

Neuland Laboratories reported strong operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 540% to ₹224 crore from ₹35 crore.

The company's EBITDA margin came in at 35% as against 12% in the year-ago period.

"While commercial products contributed to most of the revenue, we are seeing exciting developments in terms of the pipeline projects. The depth of customer conversations today is significantly stronger, and we are increasingly engaging on broader capability-led discussions rather than individual projects alone," said Saharsh Davuluri, Chief Executive Officer and Managing Director, Neuland Laboratories.

In a separate development, Neuland Laboratories and Gland Pharma announced a long-term strategic CDMO partnership.

Under the partnership Gland will establish a sterile manufacturing suite for Active Pharmaceutical Ingredients (APIs) pertaining to microparticle depot products.

"The collaboration combines Neuland's Complex API development and manufacturing capabilities including deep expertise in complex chemistry, process development, custom manufacturing having a strong track record of serving global innovator and generic pharmaceutical companies; with Gland Pharma's global sterile manufacturing expertise and strong regulatory compliance track record, to serve growing worldwide demand for sterile APIs used in microparticle depot products and other complex sterile APIs," Neuland Laboratories said in a press release.

The collaboration represents a significant expansion of the relationship between the two companies, creating a dedicated manufacturing platform that aligns their complementary capabilities under a long-term strategic partnership, Neuland Laboratories added.

As of 10:30 am, Neuland Laboratories shares traded 10.7% higher at ₹22,063, outperforming the NIFTY Smallcap 100 index which was up 0.64%.