Laurus Labs Ltd.LAURUSLABS₹934.40 +1.14%

Laurus Labs Ltd., an R&D-driven pharmaceutical and biotech company, announced its financial results for the second quarter ended September 30, 2025 (Q2 FY26). The quarter was marked by surging growth in the company’s high-value Contract Development and Manufacturing Organization (CDMO) business and sustained performance in Generics.

The company’s Revenues for Q2 FY26 stood at ₹1,653 crore, achieving a strong 35% growth year-on-year (Y-o-Y).

Gross Margins expanded to 59.9%, up 4.7 percentage points Y-o-Y, primarily due to a favorable business mix (higher CDMO revenues) and operational improvements.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was ₹429 crore, representing a massive 136% Y-o-Y increase.

Net Profit for the quarter was ₹195 crore, reflecting an 875% Y-o-Y rise.

The Board of Directors also declared an Interim Dividend of ₹0.80 per share with October 31, 2025 as the record date. The Dividend amount will be paid on or after November 12, 2025.

The CDMO (Contract Development and Manufacturing Organization) business was a major driver of the quarter’s success. Small Molecules within CDMO reported revenues of ₹471 crore, increasing by 58% Y-o-Y. This was driven by several late-phase and commercial deliveries and supported by strong demand in complex small molecule offerings. Bio (Large Molecules) revenues were ₹47 crore, showing an 18% increase Y-o-Y and a 62% sequential (quarter-on-quarter) increase, with the growth coming from de-risked customer base and commercial products.

The Generics business reported revenues of ₹1,135 crore, achieving a 28% Y-o-Y growth.

This growth was primarily fueled by continued high-volume uptake in ARV (Antiretroviral) products.

Finished Dosage Forms (FDF) reported revenues of ₹518 crore, soaring 58% Y-o-Y. API (Active Pharmaceutical Ingredients) revenues were ₹617 crore, increasing 11% Y-o-Y, supported by higher Contract Manufacturing Organization (CMO) activity levels. Overall ARV Revenues (API and FDF combined) grew 25% Y-o-Y, reaching ₹733 crore.

The company continues to invest in long-term growth. R&D spends for Q2 supported strategic initiatives, including a recent US $2 million investment in Aarvik Therapeutics to access next-generation Antibody-drug conjugates (ADC) technology and R&D capabilities.

Laurus Labs remains focused on investing behind high-value CDMO/CMO business opportunities to sustain near and long-term growth and returns. The expansion of commercial capacity at the Vizag site and capabilities for advanced therapies are well underway.

Over the last five years, this stock has delivered multibagger returns of more than 175%. 

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Note: The stock price mentioned is as of 3:30 pm.