Laurus Labs Robust FY26 Performance Driven by CDMO and Generics Expansion

Laurus Labs delivered a strong financial performance in FY 2026, reporting INR 6,813 crore in revenue, marking a 23% year-on-year growth. The company’s EBITDA margins expanded by 6.7 percentage points to 26.8%, fueled by growth in the CDMO business and a solid Generics (Affordable Medicines) portfolio. With strategic investments in large-scale manufacturing infrastructure, Laurus Labs is well-positioned for long-term growth, targeting a 50% revenue contribution from the CDMO segment by 2030.

Financial Highlights of FY26

Laurus Labs concluded the 2026 fiscal year with significant operational success. Total revenue reached INR 6,813 crore, representing a 23% growth over the previous year. Profitability saw a sharp increase, with Profit After Tax (PAT) surging to INR 889 crore, a growth of 148%. EBITDA for the full year stood at INR 1,826 crore with a healthy margin of 26.8%, while the Return on Capital Employed (ROCE) improved to 17.7% from 9.7% in the prior year.

Segment Performance and Strategic Growth

The CDMO business emerged as a key growth driver, clocking INR 2,080 crore in annual revenue. The small molecule CDMO division grew by 38%, contributing significantly to the company’s revenue diversification. Meanwhile, the Affordable Medicines division (formerly Generics) posted a robust 18% growth, reaching INR 4,733 crore in revenue. The company continues to maintain its global leadership in anti-retroviral therapy, providing for one-third of the global HIV population.

Capex and Future Outlook

Laurus Labs is prioritizing capital expenditure to drive future scale, with an investment plan of INR 3,000 crore over the next two years. Key projects include Unit 7, a large greenfield manufacturing site, and the expansion of fermentation and peptide manufacturing capabilities. These investments are backed by visible demand from global partners. Management remains confident in the company’s resilient business model and expects to maintain or improve EBITDA margins in FY27 as operational leverage continues to play a significant role in profitability.

Source: BSE

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