Stock Report

Laurus Labs Reports Exceptional Q1 FY27 Results: Consolidated Net Profit Surges 126% YoY to ₹362 Crore; EBITDA Margins Expand to 31.8%

Posted On : 2026-07-24 18:01:16( TIMEZONE : IST )

Science-led pharmaceutical and biotechnology major Laurus Labs Limited (BSE: 540222, NSE: LAURUSLABS) announced its unaudited consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27).

Driven by stellar execution in its CDMO division, an expanding global footprint, and robust operational leverage, the company delivered a standout performance for the quarter, with net profit surging 126% YoY and EBITDA expanding by 66% YoY.

Consolidated Financial Highlights: Q1 FY27 vs Q1 FY26

Revenue from Operations: Consolidated revenue for Q1 FY27 reached ₹2,026.31 crore, registering a 29.10% YoY increase compared to ₹1,569.57 crore in Q1 FY26. On a sequential basis, revenue grew 11.85% over ₹1,811.57 crore in Q4 FY26.

Total Income: Reached ₹2,035.49 crore, up 28.83% YoY from ₹1,580.00 crore in Q1 FY26.

Gross Margins: Expanded by 330 bps YoY to 62.7% (up from 59.4% in Q1 FY26), supported by an improved product mix and a higher contribution from CDMO projects.

EBITDA: Jumped 65.55% YoY to ₹644 crore, up from ₹389 crore in Q1 FY26.

EBITDA Margin: Expanded significantly by 700 bps YoY to 31.8%, driven by product-mix enrichment and operational efficiency.

Profit Before Tax (PBT): Surged 114.68% YoY to ₹481.36 crore, compared to ₹224.22 crore in Q1 FY26 and ₹361.37 crore in Q4 FY26.

Profit After Tax (PAT): Consolidated net profit attributable to equity holders soared 125.49% YoY to ₹367.60 crore, against ₹163.02 crore in Q1 FY26. Total consolidated net profit (after accounting for non-controlling interests loss of ₹5.53 crore) stood at ₹362.07 crore.

Earnings Per Share (EPS): Basic and diluted EPS for the quarter rose sharply to ₹6.81 and ₹6.80 per share respectively (face value ₹2/- each), up from ₹3.02 in Q1 FY26 and ₹5.17 in Q4 FY26.

Total Comprehensive Income: Stood at ₹359.86 crore after factoring in a net OCI loss of ₹2.21 crore.

Segment-Wise Revenue Performance

1. CDMO Segment

The CDMO (Contract Development and Manufacturing Organization) business continues to act as a major growth engine:

CDMO - Small Molecules: Revenue soared 69.37% YoY to ₹835 crore (up from ₹493 crore in Q1 FY26), fueled by commercial API supplies, ramp-up of late-stage clinical projects, and accelerating demand across new modalities (peptides, human health, animal health, and crop science). The active pipeline exceeds 125 projects.

CDMO - Bio: Revenue grew 20.69% YoY to ₹35 crore (versus ₹29 crore in Q1 FY26), driven by strong traction in enzymatic technology applications.

Total CDMO Revenue: Reached ₹870 crore, marking a overall 66.67% YoY growth.

2. Affordable Medicines (Generics)

Finished Dosage Forms (FDF): Revenue expanded 22.14% YoY to ₹502 crore, up from ₹411 crore in Q1 FY26, driven by new product launches in the US market and consistent volume growth.

Active Pharmaceutical Ingredients (API): Revenue reached ₹654 crore, up 2.67% YoY from ₹637 crore in Q1 FY26.

Total Affordable Medicines Revenue: Climbed 10.31% YoY to ₹1,156 crore (versus ₹1,048 crore in Q1 FY26).

Anti-Retroviral (ARV) Combined Revenue: Total combined API + FDF ARV revenue stood at ₹669 crore (up 3.40% YoY).

Cost Structure Overview

Consolidated total expenses for Q1 FY27 rose 14.63% YoY to ₹1,554.13 crore (versus ₹1,355.78 crore in Q1 FY26), demonstrating significant operating leverage against top-line growth:

Cost of Materials Consumed: Stood at ₹785.77 crore (versus ₹599.41 crore in Q1 FY26).

Purchase of Traded Goods: Amounted to ₹35.12 crore (versus ₹38.50 crore in Q1 FY26).

Changes in Inventories: Recorded an absorption / build-up of -₹64.88 crore (versus -₹0.56 crore in Q1 FY26).

Employee Benefits Expense: Rose 20.44% YoY to ₹258.70 crore (versus ₹214.80 crore in Q1 FY26).

Other Expenses: Totaled ₹373.33 crore, up 11.35% YoY from ₹335.29 crore in Q1 FY26.

Depreciation & Amortisation: Stood at ₹123.87 crore (up from ₹116.84 crore in Q1 FY26).

Finance Costs: Reduced 18.02% YoY to ₹42.22 crore (down from ₹51.50 crore in Q1 FY26).

Tax Provision: Total tax expense for the quarter was ₹119.37 crore (comprising ₹134.88 crore current tax and a deferred tax credit of ₹15.51 crore).

R&D, Strategic Capex & Product Filings

R&D Expense: Total R&D investment (including capital expenditure R&D) surged 74% YoY to ₹118 crore (representing 5.8% of operational revenue), driven by building Advanced Biologics infrastructure (Gene Therapy / Antibody Drug Conjugates).

Capital Expenditure: Q1 Capex stood at 19% of sales, supporting ongoing growth projects across small molecules, fermentation, peptides, gene therapy, and ADCs.

Fermentation Facility Update: Large-scale fermentation capacity expansion in Vizag is progressing well and is expected to be commissioned by Q3 FY27.

Aarvik License Deal: In-licensed two ADC assets from Aarvik Therapeutics for development and commercialization in the Indian market.

KRKA Joint Venture: Phase-I production blocks for High Potent and General OSD capability at the FDF site remain fully on track for opening in mid-2027.

Regulatory Filings:

DMF Filings: Cumulative Drug Master File filings reached 92 to date.

Developed Market FDFs: Filed 2 product dossiers in Q1 FY27, taking cumulative filings to 96.

Equity & Capital Structure

Paid-up Equity Share Capital: Stood at ₹108.05 crore (face value ₹2/- per share).

Other Equity: Total reserves stood at ₹5,192.09 crore as per full-year audited disclosures for FY26.

Dr. Satyanarayana Chava, Founder & Chief Executive Officer commented; "Laurus has delivered record quarterly Revenue with expanded profitability and continued its portfolio transformation. This was driven by growing commercial deliveries within CDMO and continued strength in Affordable Medicines portfolio. During the quarter, we strengthened our Integrated offerings, niche capabilities that matter most to our clients.

We also achieved important milestones, including agreement to in-license two Antibody Drug Conjugates (ADCs) and securing final handover of new land parcel, reinforcing our long-term growth strategy.

I am pleased with our progress, and excited about next wave of business opportunities driving confidence in our ability to deliver sustained growth and value creation."

V V Ravi Kumar, Executive Director & Chief Financial Officer commented: "We delivered a strong operating performance in Q1 despite challenging macroeconomic volatility. We are pleased to see sustained momentum across both CDMO and Affordable Medicine division. We have achieved revenue of ₹ 2,026 Cr, representing 29% growth and EBITDA of ₹ 644 Cr, representing 66% growth. The EBITDA margins were strong and consistently improved at 31.8%, supported by improvement in capacity utilization and operating leverage. Gross margins improved by over 3% pts to 62.7% due to favorable segment mix.

Our commercial and operational execution continues to enable us to generate strong results and we are continuing on our key CAPEX program to drive near and long term growth."

Shares of Laurus Labs Limited was last trading in BSE at Rs. 1568.30 as compared to the previous close of Rs. 1577.65. The total number of shares traded during the day was 41327 in over 3567 trades.

The stock hit an intraday high of Rs. 1583.85 and intraday low of 1562.50. The net turnover during the day was Rs. 64965032.00.