Laurus Labs (LAURUSLABS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew strongly to ₹1,415.05 crore, driven by robust CDMO and formulations performance, while API revenues declined due to lower ARV volumes; 9M FY25 revenue reached ₹3,834 crore, up 6% year-over-year.

• Q3 net profit after tax surged to ₹92.94 crore, up 300% YoY, with 9M FY25 PAT at ₹125.57 crore; EBITDA for 9M at ₹638 crore (16.6% margin).

• Strategic investments included Eight Roads Ventures and F-Prime Capital investing ₹120 crore in Laurus Bio to expand fermentation capacity, and capital contributions to the KRKA Pharma joint venture.

• Continued execution on key pipelines, expansion of R&D and business development capabilities, and opening of a new R&D facility in Hyderabad.

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

Financial highlights

• Q3 FY25 consolidated revenue was ₹1,415.05 crore, up 18% YoY; 9M FY25 revenue at ₹3,834 crore, up 6% YoY.

• Q3 EBITDA at ₹285 crore (20.1% margin), up 56% YoY; 9M EBITDA at ₹638 crore (16.6% margin).

• Q3 net profit after tax at ₹92.94 crore, up from ₹23.34 crore YoY; 9M PAT at ₹125.57 crore.

• Net debt at ₹2,766 crore; net debt-to-EBITDA at 3.1x; ROCE at 6.8%.

• Operating cash flow for 9M at ₹206 crore; capex at ₹448 crore (12% of revenues).

Outlook and guidance

• FY25 guidance maintained for revenue growth and EBITDA margin improvement, with confidence in achieving full-year EBITDA margin close to 20%.

• CDMO division expected to see continued and accelerated growth in FY2026, with animal health and crop science facilities contributing.

• ARV franchise revenues expected to remain stable in the ₹650 crore per quarter range for the next two years.

• Focus on leveraging platform capabilities for medium/long-term contracts and offsetting generic pricing headwinds.