Laurus Labs (LAURUSLABS) Q2 25/26 earnings summary

Executive summary

• Achieved strong Q2 FY26 results with total income from operations at INR 1,653 crore, up 35% year-over-year, and H1 FY26 revenues of ₹3,223 crore, up 33% YoY, driven by robust ARV, CDMO, and Generics growth.

• EBITDA for H1 FY26 reached ₹818 crore (25.4% margin), up 132% YoY, with gross margin expanding to 59.6% due to a healthier business mix.

• Continued leadership in ARV, expansion in CDMO, and significant investments in new modalities and manufacturing capacities, including a $600 million plan for a new pharma complex in Vizag.

• Unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025, were approved by the Board on October 23, 2025.

• Statutory auditors issued an unmodified review conclusion for both standalone and consolidated results.

Financial highlights

• Q2 FY26 revenue: INR 1,653 crore (+35% YoY); H1 FY26 revenue: INR 3,223 crore (+33% YoY); consolidated H1 FY26 revenue: ₹3,260.43 crore.

• Q2 gross margin: ~60%; EBITDA margin: 26%; PAT: INR 195 crore; H1 EBITDA: INR 818 crore (24-25.4% margin); H1 PAT: INR 358 crore.

• Net profit for H1 FY26 surged 985% YoY to ₹358 crore; Q2 net profit up 875% YoY to ₹195 crore.

• Operating cash flow for H1 FY26 was ₹1,093 crore, up from ₹57 crore YoY.

• ARV sales in Q2: INR 733 crore (API: INR 395 crore, Formulations: INR 338 crore); CDMO Q2 sales: INR 471 crore; H1 CDMO sales: INR 964 crore (+88% YoY).

Outlook and guidance

• Confident in improved growth for the rest of FY26, maintaining ARV sales guidance at INR 2,500 crore ± INR 200 crore.

• CDMO and generics expected to sustain momentum; animal health revenues to contribute meaningfully from next fiscal.

• Underlying EBITDA margins anticipated to remain higher, driven by better asset utilization and product mix.

• Ongoing CAPEX investments to support long-term growth while maintaining balance sheet discipline.

• No significant ramp-up in Laurus Bio until new capacity comes online by end of 2026.