Laurus Labs (LAURUSLABS) Q3 24/25 earnings summary

Executive summary

• Achieved strong Q3 revenue growth, driven by robust CDMO and formulations performance, with API revenues declining due to lower ARV volumes; 9M FY25 revenues reached ₹3,834 crore, up 6% year-over-year.

• Strategic investments by Eight Roads Ventures and F-Prime Capital in Laurus Bio to expand fermentation capacity, with Laurus Labs co-investing and further investment rights.

• Continued focus on high-value, complex small molecules, expansion of global business development, and operational strengthening in CMO/CDMO.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved by the Board, with statutory auditors issuing unmodified review conclusions.

• ESG score improved to 71 (+12 pts YoY) with ongoing investments in green technology and efficiency platforms.

Financial highlights

• Q3 FY25 consolidated revenue was ₹1,415.05 crore, up 18% YoY; 9M 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 300% YoY; 9M PAT at ₹125.57 crore, up 47% YoY.

• Gross margin for Q3 at 56.9%; 9M gross margin at 55.8%.

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

Outlook and guidance

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

• CDMO division expected to see continued and accelerated growth in FY2026.

• ARV franchise revenues expected to stabilize between ₹2,300–2,500 crore annually over the next two years.

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

• No margin guidance provided for FY2026.