Laurus Labs reported ₹1,653 crores in revenue for Q2 FY’26, driven by robust demand for ARVs and CDMO. Gross margins remained above 59%, while EBITDA margins expanded to 26%. The company invested in an ADC technology platform and received land for a new manufacturing complex in Vizag, planning a significant investment over the next 8 years. Laurus Labs anticipates continued growth and profitability improvements.
Financial Performance Highlights
In Q2 FY’26, Laurus Labs achieved revenues of ₹1,653 crores. This reflects strong demand in both the anti-retroviral (ARV) and CDMO sectors. Gross margins remained strong, exceeding 59%. EBITDA margins reached 26%, benefiting from better operating leverage and an improved product mix.
CDMO Business Update
The CDMO division continues to exhibit strong momentum, with Q2 sales reaching ₹471 crores. For the first half of the fiscal year, CDMO sales totaled ₹964 crores, representing an 88% increase. This growth is primarily due to deliveries from mid-to-late-stage programs and increased sales from new manufacturing assets.
Generics Division Performance
The generics division performed well, reporting a 28% increase in revenue to ₹1,135 crores. This was primarily driven by increased volumes in ARVs and formulation supplies. For the first half of the year, generic sales were ₹2,183 crores, a 20% increase.
Strategic Investments and Expansion
Laurus Labs received allotment of 532 acres in Vizag for a new pharmaceutical manufacturing complex, with a planned investment of around $600 million over 8 years. The company also invested in an ADC technology platform and is expanding capacity in specialized modalities such as gene therapy, ADC, and fermentation.
R&D and Quality Focus
The company spent 4.3% of sales on R&D. Laurus Labs successfully underwent nearly 65 quality audits by various customers and regulatory agencies without critical findings.
Debt and Capital Allocation
Net debt stood at ₹2,100 crores, with a debt-to-EBITDA ratio of around 1.3x. The company will continue to prioritize investments in high-value business segments.
ARV Business Outlook
The company anticipates ARV sales of approximately ₹2,500 crores, plus or minus ₹200 crores, for the fiscal year.
Source: BSE
