Earnings Review
Laurus Labs Q1 consol PAT surges 126%, beats street views
This story was originally published at 16:28 IST on 24 July 2026
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--Laurus Labs Apr-Jun consol net profit INR 3.68 bln
--Analysts saw Laurus Labs Apr-Jun consol net profit at INR 2.35 bln
--Laurus Labs Apr-Jun consol revenue INR 20.26 bln
--Analysts saw Laurus Labs Apr-Jun consol revenue at INR 18.08 bln
--Laurus Labs Apr-Jun consol PAT INR 3.68 bln vs INR 1.63 bln year ago
--Laurus Labs Apr-Jun consol revenue INR 20.26 bln vs INR 15.70 bln year ago
--Laurus Labs Apr-Jun consol EBITDA INR 6.44 bln vs INR 3.89 bln yr ago
--Laurus Labs Apr-Jun consol EBITDA margin 31.8% vs 24.8% yr ago
--Laurus Labs Apr-Jun contract mfg ops sales INR 8.70 bln vs INR 5.22 bln
--Laurus Labs Apr-Jun generics revenue INR 11.56 bln vs INR 10.48 bln
By Gunjan Rajput
NEW DELHI – Laurus Labs Ltd. posted a sharp year-on-year rise in its consolidated net profit for the June quarter, driven by growing commercial deliveries within the contract development and manufacturing organisation and continued strength in the affordable medicines portfolio. The company's revenue also posted strong year-on-year growth for the reporting quarter. The company delivered strong June-quarter results, marking its seventh consecutive quarter of simultaneous revenue and net profit growth.
The drugmaker's net profit for the June quarter rose 126% on year to INR 3.68 billion, surpassing the Street view of INR 2.35 billion. The company's revenue increased 29% on year to INR 20.26 billion. Analysts had expected revenue at INR 18.08 billion.
"Laurus has delivered record quarterly Revenue with expanded profitability and continued its portfolio transformation. This was driven by growing commercial deliveries within CDMO and continued strength in Affordable Medicines portfolio. During the quarter, we strengthened our Integrated offerings, niche capabilities that matter most to our clients," Founder & Chief Executive Officer Dr. Satyanarayana Chava said in the investor presentation.
The company's total expenses grew nearly 15% on year to INR 15.54 billion for the reporting quarter. Cost of materials consumed, which accounts for half of the total expenditure, grew over 31% on year to INR 7.86 billion. Expenses related to employee benefits grew over 20% on year to INR 2.59 billion, and other expenses rose over 11% on year to INR 3.73 billion.
The company's consolidated earnings before interest, tax, depreciation, and amortisation rose 66% on year to INR 6.44 billion for the reporting quarter. The EBITDA margins expanded by 7% to 31.8%.
"The EBITDA margins were strong and consistently improved at 31.8%, supported by improvement in capacity utilisation and operating leverage. Gross margins improved by over 3% pts (percentage point) to 62.7% due to favorable segment mix. Our commercial and operational execution continues to enable us to generate strong results and we are continuing on our key CAPEX programme to drive near and long-term growth," as mentioned in the investor presentation by the company.
Out of the total revenue, the contract development and manufacturing organisation business grew 67% year-on-year to INR 8.70 billion, propelled by a 69% jump in small molecules at INR 8.35 billion due to commercial deliveries and late-stage clinical active pharmaceutical ingredient supplies. The bio segment generated revenue worth INR 35 million, which was up 21% year-on-year.
The affordable medicines business rose 10% year-on-year to INR 11.56 billion. Growth was supported by a 22% increase in finished dosage forms to INR 5.02 billion and API sales grew 3% to INR 6.54 billion. The Anti-Retroviral revenue grew 3% year-on-year to INR 6.69 billion for the June quarter.
"Growth driven by steady ARV (antiretroviral), established product volume growth and new launches in the US," the company said in the investor presentation.
Laurus Labs increased its research and development investments by 74% year-on-year to INR 1.18 billion, accounting for 5.8% of revenue, with a heavy focus on advanced biologics such as gene therapy and antibody drug conjugates.
The company has also secured rights to two antibody drug conjugate assets from Aarvik Therapeutics for development and commercialisation in India. "Planned Capex increase over FY27 & FY28 well on track to support growth projects across Small molecule (Human & Animal health), Fermentation, Peptides, Gene therapy and Antibody Drug conjugates," as mentioned in the investor presentation.
Laurus Labs announced its June quarter earnings during the market hours. Friday, shares of the company ended at INR 1,601.20 on the National Stock Exchange, up 2.1%. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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