Laurus Labs announced its financial results for the second quarter of fiscal year 2027, reporting a robust 29% year-on-year revenue growth. The company highlighted strong performance in its CDMO business, with 86% growth, and a steady momentum in its affordable medicines portfolio. Total revenues reached INR2,206 crores, with healthy gross and EBITDA margins maintained.
Laurus Labs Announces Strong Q2 FY27 Performance
Laurus Labs Limited has reported its financial results for the second quarter ended September 30, 2026 (Q2 FY27), showcasing a significant uptick in revenue and sustained profitability. The company achieved total revenues of INR2,206 crores, marking a substantial 29% year-on-year growth. This performance is attributed to the continued strength of its CDMO platform and the ongoing momentum in its affordable medicines portfolio.
Segmental Highlights
CDMO Business Surges
The CDMO segment demonstrated exceptional performance, reporting an 86% growth in Q2 FY27, with sales amounting to INR875 crores. For the first half of the financial year, this division recorded INR1,710 crores, reflecting approximately 77% growth. This growth was driven by successful delivery of critical late-stage programs and commercial API supplies to global partners. The company is actively expanding its capabilities and capacities to meet increasing customer demand and has commissioned its commercial-scale peptide manufacturing block, with current reactor volume for solid-phase peptide synthesis exceeding 16,000 liters.
Affordable Medicines Portfolio Shows Resilience
Revenues from the affordable medicines segment stood at INR1,302 crores in Q2 FY27, a healthy 15% year-on-year growth. For the first half of the fiscal year, this segment achieved 13% growth, driven by continued expansion of its order book and stable pricing across its ARV and developed market portfolios. The company also reported filing 2 dossiers and receiving 2 approvals for its market formulation business in H1.
Financial Performance Metrics
The company maintained healthy gross margins at around 63% for the quarter, with EBITDA margins expanding by 2.7 percentage points to 34.5%. For the first half of the fiscal year, total income from operations reached INR4,233 crores, a growth of 31%. EBITDA for H1 stood at INR1,406 crores with a margin of 33.2%. Profit after tax for H1 was INR809 crores, and for Q2 FY27, it was INR441 crores. ROCE improved to 22.5% for H1.
Strategic Investments and Future Outlook
Laurus Labs continues to invest in building scientific capabilities and capacities. The company announced investments into two technology platform companies: a 60% stake acquisition in Canada-based Galenvs Sciences, specializing in oligonucleotides, and a majority stake in SI & C Resins, a peptide resin technology-focused company. These strategic moves aim to enhance integrated scientific capabilities and strengthen its position in emerging high-growth markets. The company reaffirmed its guidance of maintaining over 60% gross margin and over 30% EBITDA margin.
The management expressed confidence in the company’s transformation strategy and its well-positioned trajectory for long-term growth through broadened capabilities, diversified pipeline, and key commercial opportunities.
Source: BSE
