During the quarter, EBITDA stood at Rs 156.9 crore, registering growth of 138.80% compared with Rs 65.7 crore posted in the same quarter last year. EBITDA margin improved 960 bps to 30.40% in Q2 FY26 as against 20.80% in Q2 FY25.

Total expenses jumped 45.59% to Rs 386.64 crore in Q2 FY26, compared with Rs 265.75 crore in Q2 FY25. The cost of material consumed stood at Rs 227.64 crore (up 70.94% YoY), employee benefit expenses were at Rs 80.37 crore (up 28.43% YoY), finance cost stood at Rs 5.17 crore (up 387.74% YoY), while manufacturing expenses stood at Rs 45.96 crore (up 8.68% YoY) during the period under review.

Sucheth Davuluri, vice-chairman and chief executive officer of the company, said, “The record high revenue this quarter driven by CMS commercial projects led to the operating leverage reflected in the EBITDA margins, and we expect this momentum to continue through the rest of the year. Given the investments we are making, Neuland is well positioned to take advantage of the number of growth opportunities available to us in both the CDMO and the generic APIs space.

Customer interest in Neuland’s capabilities continues to be on the rise as we see increased engagement with a diverse range of customers. Our reputation and track record as an agile partner is enabling not just new business but also a greater share of business from existing customers. Our investments are going according to plan and helping to further differentiate Neuland as a partner of choice.”

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