Laurus Labs reported strong Q3 FY’26 results with revenue at ₹1,778 crores. Gross margins remained strong at around 60%, and EBITDA margins expanded to over 27%. The company continues to invest in capacity expansion, particularly in peptide development and manufacturing, and anticipates continued growth in its CDMO and generics segments. Key investments include new facilities for antibody-drug conjugates and gene therapy.
Financial Performance
Laurus Labs announced robust financial results for Q3 FY’26. Key highlights include:
- Revenue: ₹1,778 crores
- Gross Margin: Approximately 60%
- EBITDA Margin: Over 27%
The company attributed its performance to strong growth in generics and CDMO businesses.
CDMO Business Update
The CDMO segment continues to show strong growth, with cumulative 9-month performance up over 50%. Q3 small molecule sales reached ₹408 crores. The company is expanding capabilities, including peptides, flow chemistry, and high-energy chemistries. A commercial-scale fermentation facility at Vizag is expected to be operational by the end of 2026 with a capacity of over 400 kiloliters.
Generics Business Update
The generics division reported a revenue increase of 37% to ₹1,327 crores for Q3 and ₹3,510 crores for the 9-month period, a 26% increase. Growth was supported by higher ARV volumes and successful new product launches in developed markets. Oral solid facility expansion is progressing well, with a portion of the capacity already operational and undergoing ramp-up.
R&D and Quality
R&D spending was 4.1% of sales for the 9-month period, reflecting an 8% year-on-year increase, including spending on cell and gene therapy. Laurus Labs underwent approximately 110 quality audits during the 9-month period without any critical points. Their ESG score improved by 10 percentage points to 81 out of 100.
Capital Expenditure and Debt
The company invested ₹246 crores in CAPEX for the quarter and ₹735 crores cumulatively for the 9-month period. Net debt stood at ₹2,092 crores, with debt to EBITDA decreasing to around 1.2x.
Strategic Investments and Outlook
Laurus Labs is making significant investments in new modalities, including ADC (antibody-drug conjugates) and gene therapy. The company invested $25 million in a GMP facility for ADCs. The company anticipates continued healthy operational growth and is focused on long-term value creation.
Krka Pharma Joint Venture
The joint venture with Krka Pharma aims to manufacture formulations for the European market, utilizing APIs supplied by Laurus Labs. Phase 1 is expected to be completed by mid-2027, with a capacity of 3 billion solid oral tablets.
Source: BSE
