Laurus Labs announced strong performance in Q1 FY27, with revenue growing 29% year-on-year to INR2,026 crores. EBITDA margins expanded to 31.8%. The company detailed growth drivers across its CDMO, Affordable Medicines, and Bio divisions. Significant investments are being made in advanced biologics, gene therapy, and ADCs, with a revised capex guidance of INR1,500-2,000 crores for FY27.
Laurus Labs Reports Robust Q1 FY27 Performance
Laurus Labs has announced a strong start to the fiscal year 2027, with its first-quarter results showcasing significant year-on-year growth. Total revenue reached INR2,026 crores, marking a 29% increase. This growth was primarily driven by the expanding contribution of commercial supplies within the CDMO segment and sustained momentum in the affordable medicine portfolio. The company also reported healthy gross margins of 62.7% and an improved EBITDA margin of 31.8%, up by approximately 7 percentage points from the previous quarter.
Segmental Performance and Strategic Focus
The CDMO business demonstrated significant acceleration, reporting a growth of 69% with sales of INR835 crores driven by late-stage clinical and commercial deliveries. The Affordable Medicines division delivered a strong quarter with revenue of INR1,156 crores, a 10% year-on-year increase, attributed to higher volumes in established portfolios like ARVs and Onco. The Bio division reported sales of INR35 crores, a 21% growth, supported by customer revenue diversification and pipeline progress.
Strategic Investments and Capex Update
Laurus Labs is strategically investing in future growth areas, including advanced biologics, gene therapy, and ADCs. The company has increased its capital expenditure guidance for FY27 to INR1,500 to INR2,000 crores, reflecting increased inquiries from big pharma and expansion of offerings in new modalities. Investments are being made to meet existing customer demands and to build capacity for future needs, with a focus on purpose-driven and product-specific expansion.
Forward-Looking Outlook
Management expressed confidence in the ongoing transformation strategy and the ability to deliver sustained growth. The company anticipates continued robust demand for its specialized technology offerings and integrated manufacturing capabilities. Investments in new areas like bio and crop sciences are being assessed for their long-term opportunity, with an expected evolution over the next 18 to 24 months. The company remains committed to investing in portfolio complexity, scale, and sustainable technology platforms.
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