Analyst Concall
Laurus Labs ups FY27 capex to INR 20 bln to fund expansion
This story was originally published at 20:58 IST on 24 July 2026
Register to read our real-time news.Informist, Friday, Jul. 24, 2026
Please click here to read all liners published on this story
--Laurus Labs:In final stage of getting 500 acre by Andhra govt for new plant
--[I]CONTEXT: Comments by Laurus Labs mgmt in a post-earnings conference call
--Laurus Labs: Net debt INR 26.56 bln; slightly up in Q1 due to high capex
--Laurus Labs:Rise in FY27 capex plan to INR 20 bln due to ongoing expansion
--Laurus Labs: It will take up to 18 months to ramp up Biologics ops
--Laurus Labs: Working on 2-3 different products in GLP-1 category
--Laurus Labs: Aim to get 50% of total revenue from CDMO business by FY30
--Laurus Labs: Expect peptides to bring meaningful revenues going forward
--Laurus Labs: Most of FY27 planned capex goes into small molecules, API ops
By Gunjan Rajput and Narayana Krishna
HYDERABAD/NEW DELHI – Laurus Labs Ltd. has scaled up its capital expenditure target for financial year 2026-27 (Apr-Mar) to around INR 20 billion to fund the ongoing operational expansion, the management said in a post-earnings conference call Friday.
"Some programmes we are doing advanced instruments; maybe we have to do API (active pharmaceutical ingredient). We were expanding our offerings in the programm4s. We are investing in new modalities within the small molecules also. So this capex, unlike the earlier capex what we have done, this we are doing for a purpose, for a product, and capacity what is needed in the near term for our partners' needs," management said.
Most of the revised capital allocation will be directed toward expanding the company's small molecules contract development and manufacturing organisation, and active pharmaceutical ingredients operations. To support this growth phase, Laurus Labs is in the final stages of securing 500 acres of land from the Andhra Pradesh government for a new manufacturing facility. The elevated capital intensity led to a slight increase in net debt, which stood at INR 26.56 billion at the end of the first quarter.
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.
As part of its long-term strategy, Laurus Labs aims to bring the revenue share of its high-margin contract development and manufacturing organisation business to 50% of total sales by FY30.
The company is developing two to three products in the high-demand glucagon-like peptide-1 space and expects peptides to start generating meaningful revenue moving forward. "Within GLP-1 (glucagon-like peptide-1) space, there are a few different opportunities that we are working on. Unfortunately, we are not able to discuss any project-specific details, but we expect Peptides to be a meaningful area for the company," management said in the post-earnings conference call.
The company plans to generate INR 20 billion from the Biologics business, supported by multiple product launches. The management said it will take another 18 months to ramp up this business further. "Our next 12 to 18 months will be very crucial, which molecule, which programme in our precision fermentation will take off, which will not take off. So that is the reason we expect in 18 months for our bio business to see a significant ramp-up," the management added.
Friday, shares of the company closed 2.1% higher at INR 1,601.20 on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
