Neuland Laboratories Ltd

Sale under Reg 29(2)

• Target Company: Neuland Laboratories Limited.
• Disclosing Party: Malabar India Fund Limited (non-promoter).
• Transaction Type: Sale of equity shares in open market.
• Pre-Transaction Holding: 9,21,371 shares, 7.18%.
• Encumbrances pre-sale: Nil.
• Details of sale: 2,72,634 shares sold (2.12%).
• Mode of sale: Open market.
• Post-Transaction Holding: 6,48,737 shares, 5.06%.
• Date(s) of Transaction: Between 10 August 2024 and 14 August 2026.
• Equity capital before sale: Rs 12,82,98,890; 1,28,29,889 shares.
• Equity capital after sale: Rs 12,82,98,890; 1,28,29,889 shares.
• Total diluted capital after sale: Rs 12,82,98,890; 1,28,29,889 shares.

Financial Performance

• Q1FY27 total income INR 650.1 crores, up 16.3% YoY from INR 300.6 crores.
• EBITDA INR 231.1 crores, margin 35.5%.
• Gross margin 61.2% vs 55.3% in Q1FY26.
• PAT INR 147.4 crores; EPS INR 114.9.
• Working capital days improved to 84 in FY27 from 137.
• Capex outflow INR 121.6 crores in Q1FY27 for R&D and peptide facilities.
• Approved capex during quarter ~ INR 203 crores; 196 crores for Unit 1 capacity expansion.
• Total approved capex INR 1,460 crores over 13 quarters; INR 870 crores spent to date.
• Peptide plant commissioned next month; manufacturing qualification underway.
• Gland Pharma collaboration for sterile API manufacturing.
• Future expansion may require additional manufacturing sites beyond three current sites.

GDS & CMS Update

• GDS growth driven by Ezetimibe, Mirtazapine, Escitalopram, Aripiprazole.
• Expanding presence in Brazil, Japan, South Korea and Turkey.
• CMS pipeline: two new development projects; growth from development to commercial.
• Peptide capabilities: plant commissioning next month; module 1 utilization improving.
• Gland Pharma collaboration shows synergy; niche sterile API focus.
• Outlook remains in line with long-term ambitions for FY27/FY28.
• Quarterly results can be uneven; lumpiness expected.

Balance Sheet and Cash Flow

• Working capital optimization; 84 days cash conversion improved.
• Capex outflow INR 121.6 crores in Q1FY27.
• Capex approvals during quarter INR 203 crores; 196 crores Unit 1.
• Total approved capex INR 1,460 crores; 870 crores spent to date.
• Currently three manufacturing sites; future land expansion planned.
• Future capex higher; possible overseas investments or acquisitions.

Projects and Capex

• Peptide plant commissioning next month; manufacturing qualification following.
• Gland Pharma collaboration for sterile APIs; niche product focus.
• Capex for capacity expansion at Unit 1; part of growth.
• Investments in R&D, peptides, sterile APIs; higher quantum and complexity.
• Future capex higher; overseas investments or M&A possible.

Outlook and Guidance

• FY27 expected to be a year of growth; long-term ambitions intact.
• Long-term growth target around 20% annually.
• FY28 growth likely; lumpiness possible; not a fixed FY27 number.
• Destocking not expected to hit abruptly; order visibility consistent.

Q&A Highlights

• Development revenues expected to rise; two new projects in FY27.
• CMS growth driven by handful of molecules; diversification over time.
• One more commercialization this year; more next year.
• Peptide plant will enable future opportunities beyond Module 1 capacity.
• Development revenue vs commercial base not quantified now; may rise.

Meeting Details

• Date: August 12, 2026; Group and/or one-on-one meeting; Location: Mumbai; Organizer: Emkay Confluence 2026.

Participants

• Key participants: company management (roles not specified).

Purpose

• Purpose: scheduled analyst/institutional investor meeting.

Expansion production update

• Unit 1 (Bonthapally, Gummadidala Mandal, Sangareddy, Telangana) in commercial production.
• Unit 3 (Survey No. 10, Plot 3-72, Gaddapotharam, Jinnaram, Sangareddy, Telangana) in commercial production.
• Intimation under Regulation 30 of SEBI LODR issued.

Meeting Details

• Date: August 5, 2026; Time: 17:30 IST; virtual group earnings conference call organized by Neuland Laboratories Limited.

Participants

• Key company participant: Company Secretary representing governance; IR contact details provided.

Purpose

• Purpose: Q1 FY27 earnings discussion and investor interaction.

Additional Notes

• Webcast link available for the earnings call.

Meeting Details

• Date: August 5, 2026; time and venue not disclosed.

Key Agenda Items

• Approve and take on record unaudited standalone and consolidated results for quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 1, 2026 until 48 hours after the results declaration.

Loss details

• RAM CHANDER GUPTA, folio 0000436, 100 shares, distinctive 2255901-2256000, loss reported; date 20-07-2026; action initiated.

Rating Action

• Bank loan facilities: Long-term IND A+ with Positive outlook; Short-term IND A1.

Rationale

• Rationale not disclosed in the filing.

Rating Agency

• India Ratings and Research.

Outlook & Change

• Outlook: Positive for the long-term rating; overall ratings affirmed.

Material Change

• No material change vs. previous rating; action is an affirmation.