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Laurus Labs revenues stood at ₹2026 crore

ICICIdirect Research 27 Jul 2026 DISCLAIMER

News: Laurus Labs revenues stood at ₹2026 crore, reflecting a ~29% YoY growth. The CDMO business grew ~70% YoY, reaching ₹835 crore. Generic API grew 3% YoY to ₹654 crore and the Laurus Bio grew ~21% YoY to ₹35 crore. The growth in Generic Formulations was at 22% to ₹502 crore. EBITDA stood at ₹638 crore with a margin of 31.5%, marking a significant improvement of 715 basis points YoY mainly due to 330 bps YoY improvement in GPM to 62.7%. PAT stood ₹362 crore, driven by a favourable product mix and improving operational leverage.

View: The CDMO growth for the quarter was phenomenal due to higher contribution from late-stage clinical projects and commercial API supplies and strong recurring business from existing relationships. Out of ₹ 4700+ crore of capex that the company has incurred during FY22-27, almost ~83% was earmarked towards API / CDMO. The company is now getting the benefit of the same as the CDMO quarterly run rate has gone up from ₹220-250 crore to ₹ 450-500 crore to now ~₹ 800 crore in two years. As per management, the traction is broad based unlike earlier bump which was driven by one large purchase order. ~55% of the CDMO revenues were derived from commercial suppliers and the remaining from late-stage clinical projects, thus assuring the sustainability of the run rate going ahead (management expects the same). The incremental capex guidance of ₹ 2000 crore for FY27 (earlier ₹1000-1500 crore) is again tilted towards CDMO. The management has reiterated the CDMO contribution guidance in the overall revenues to reach at ~50% by FY30. Besides CDMO, Laurus is also investing in new edge-technologies such as Cell and Gene therapies. We continue to monitor progress on these driving factors which could be the growth drivers beyond FY30. 

Impact: Positive

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