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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Neuland Laboratories's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 2.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Neuland Laboratories's Degree of Operating Leverage or its related term are showing as below:
NSE:NEULANDLAB's Degree of Operating Leverage is ranked worse than 64.75% of 939
companies
in the Drug Manufacturers industry
Industry Median: 0.96
vs NSE:NEULANDLAB: 2.36
Neuland Laboratories (NSE:NEULANDLAB) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Neuland Laboratories Degree of Operating Leverage Related Terms
Neuland Laboratories Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Neuland Laboratories's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Neuland Laboratories Degree of Operating Leverage Chart
NSE:NEULANDLAB vs ZTS: Degree of Operating Leverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Neuland Laboratories's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Neuland Laboratories Degree of Operating Leverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Neuland Laboratories's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Neuland Laboratories's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 2.36 mean?
Neuland Laboratories (NSE:NEULANDLAB) has a Degree of Operating Leverage of 2.36 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Neuland Laboratories and its competitors. According to the industry distribution chart, Neuland Laboratories ranks #608 out of 939 companies in the Drug Manufacturers industry, placing it in the top 64.7%.
Is Neuland Laboratories' Degree of Operating Leverage too high?
Neuland Laboratories' current Degree of Operating Leverage is 2.36. The Drug Manufacturers industry median Degree of Operating Leverage is 0.96. Neuland Laboratories' value of 2.36 is 145.8% above this industry median. Based on the distribution chart, Neuland Laboratories ranks #608 out of 939 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Neuland Laboratories has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Neuland Laboratories' Degree of Operating Leverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Neuland Laboratories ranks #608 out of 939 companies for Degree of Operating Leverage. This places Neuland Laboratories in the lower half of its industry. The industry median Degree of Operating Leverage is 0.96. Neuland Laboratories' value of 2.36 is 145.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Drug Manufacturers company?
The median Degree of Operating Leverage among Drug Manufacturers companies is 0.96, based on 939 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Neuland Laboratories's current Degree of Operating Leverage of 2.36 is 145.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Neuland Laboratories and its competitors. For the Drug Manufacturers industry, the median Degree of Operating Leverage is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neuland Laboratories's current Degree of Operating Leverage is 2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neuland Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Neuland Laboratories (NSE:NEULANDLAB) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹19,399.56, compared to a current price of ₹22,595.00 — trading 16.5% above its estimated fair value. The current Degree of Operating Leverage is 2.36 and 145.8% above the Drug Manufacturers industry median of 0.96. Neuland Laboratories' overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Neuland Laboratories (NSE:NEULANDLAB), the current Degree of Operating Leverage is 2.36 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Neuland Laboratories (NSE:NEULANDLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Neuland Laboratories stock appears to be overvalued.
The current stock price of ₹22,595.00 is trading 16.5% above its estimated GF Value™ of ₹19,399.56.
GuruFocus considers Neuland Laboratories to be Modestly Overvalued.
Key valuation signals for NSE:NEULANDLAB:
Degree of Operating Leverage: 2.36
GF Value™: ₹19,399.56 vs. price of ₹22,595.00 (16.5% above fair value)
Industry Position: 145.8% above the Drug Manufacturers median (#608 of 939)
No single metric tells the full story. See the NSE:NEULANDLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neuland Laboratories Ltd is engaged in the manufacturing and selling of bulk drugs and caters to both the domestic and international markets. It is an API contract development and manufacturing organization (CDMO), supporting biotechnology and pharmaceutical companies in the design, development, and manufacturing of complex active pharmaceutical ingredients (APIs). The company develops small molecules and peptides for clinical trials and beyond, with the capacity to scale up through every stage of the product lifecycle to commercial manufacturing. Geographically, the group derives maximum revenue from its customers in India, followed by Europe, the USA and North America, and the Rest of the world.
90GF Score
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