Laurus Labs (LAURUSLABS) Q1 26/27 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue and profits in Q1 FY 2027, with consolidated revenue at ₹2,035.49 crore, up 29% year-over-year, led by strong CDMO and Affordable Medicines segments.

• EBITDA reached ₹644 crore with a margin of 31.8%, up 7 percentage points year-over-year, driven by enhanced CDMO revenue and operational leverage.

• Net profit after tax was ₹368 crore, up 126% year-over-year; EPS improved to 6.81 (basic, consolidated).

• Transformation strategy focused on expanding complex technology platforms and integrated manufacturing capabilities is progressing well.

• Continued investments in capacity, new modalities (peptides, ADCs, gene therapy), and manufacturing expansion to capture future growth opportunities.

Financial highlights

• Revenue reached ₹2,035.49 crore, up 29% year-over-year and 12% sequentially; EBITDA stood at ₹644 crore, up 66% year-over-year.

• Net profit surged 126% year-over-year to ₹368 crore; EPS improved to 6.81 (basic, consolidated).

• Gross margin at 62.7%, up 3.3 percentage points year-over-year; EBITDA margin at 31.8%, up 7 percentage points.

• R&D spend was ₹118 crore (5.8% of revenue), up 74% year-over-year, focused on Advanced Biologics.

• Forex gain for the quarter was ₹5 crore.

Outlook and guidance

• Confident in sustaining healthy business growth, especially in CDMO and Bio divisions, supported by a healthy order book and internal pipeline.

• Asset turnover ratio expected to remain above 1.0x; ROCE to continue improving, though reaching 23% may take time due to ongoing CapEx.

• By FY 2030, at least 50% of revenue targeted from CDMO segment.

• Next 12–18 months crucial for ramp-up in Bio business; significant upside expected from successful programs.

• Awaiting regulatory approval for a composite scheme of arrangement involving demerger and amalgamation of subsidiaries, which may impact future results.