Synopsis

Laurus Labs reported a strong June-quarter performance, with net profit more than doubling and revenue rising 29% year-on-year, driven by robust growth in its CDMO business and affordable medicines portfolio. The company also reported margin expansion, reaffirmed its capex plans, and continued to attract higher institutional interest, boosting investor sentiment.

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Laurus Labs shares rally after strong quarterly earnings, margin expansion and robust CDMO business growth.

Laurus Labs shares jumped 4.05% to Rs 1,666 in Monday’s trading session after the company reported a stellar performance for the June 2026 quarter. The rally was fueled by a 126% year-on-year surge in net profit and 29% revenue growth, driven by strong CDMO performance and steady demand for affordable medicines.

According to the company’s regulatory filing, consolidated net profit for Q1FY27 stood at Rs 368 crore, compared with Rs 163 crore in the same quarter last year, marking a sharp 126% YoY growth. Revenue from operations increased 29% year-on-year to Rs 2,026 crore from Rs 1,570 crore in the corresponding period.

Laurus Labs highlighted that growth during the quarter was led by increased commercial projects in its Contract Development and Manufacturing Organisation (CDMO) segment, along with steady momentum in its affordable medicines portfolio.

The company reported EBITDA of Rs 644 crore, translating into a margin of 31.8%, an expansion of 7 percentage points compared with the previous year. The improvement was driven by higher CDMO contribution, better business mix, and operational efficiencies.

Gross margins also improved by more than 3 percentage points to 62.7%, reflecting stronger product mix and enhanced profitability.

Expansion plans remain on trackLaurus Labs continued to invest in expanding its manufacturing capabilities and developing niche technology platforms, with capital expenditure during the quarter accounting for 19% of sales.

The company said its planned capital expenditure for FY27 and FY28 remains on schedule and will support growth initiatives across key areas, including small molecules for human and animal health, fermentation, peptides, gene therapy, and antibody-drug conjugates (ADCs).
Management commentaryDr Satyanarayana Chava, Founder and Chief Executive Officer of Laurus Labs, said the company delivered record quarterly revenue along with improved profitability, driven by increasing commercial deliveries in CDMO and sustained performance in affordable medicines.

He added that the company continued to strengthen its integrated offerings and specialised capabilities, while achieving key milestones, including entering into agreements to in-license two antibody-drug conjugates and the final handover of a new land parcel to support future expansion.

Stock performance and technical outlookLaurus Labs shares have delivered strong returns over the medium and long term. The stock has gained around 45% in the last three months and surged nearly 92% over the past year. The company currently commands a market capitalisation of approximately Rs 86,505 crore.

From a technical perspective, the stock’s 14-day Relative Strength Index (RSI) stands at 66.3, indicating strong momentum while remaining below the overbought zone of 70. The stock is trading above all eight key simple moving averages (SMAs), reflecting a positive trend.

FIIs increased their stake in Laurus Labs during the June 2026 quarter, with holdings rising from 25.82% to 28%, indicating stronger institutional interest in the stock.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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