Laurus Labs projects strong FY26 growth on CDMO momentum and generics expansion

Drug firm Laurus Labs Ltd on Thursday (October 23) has provided its outlook for FY 2026, projecting continued strength in business momentum seen during the first half of the year.

The company expects revenue growth to be driven by a robust Contract Development and Manufacturing Organisation (CDMO) industry outlook, along with sustained clinical and commercial business momentum and the ramp-up of growth projects.

The generics segment is also expected to post growth, supported by Contract Manufacturing Organisation (CMO) opportunities and a stable antiretroviral (ARV) business.

On the profitability front, Laurus Labs anticipates underlying EBITDA margins to be higher in FY 2026, aided by better asset utilisation, an improved product mix, and a continued focus on operational excellence.

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The company also maintained its commitment to maintaining balance sheet discipline while continuing capital expenditure investments to support long-term growth.

The company reported its second-quarter results today, where net profit for the period stood at ₹195 crore, while the CNBC-TV18 poll had projected the figure to be ₹147 crore. Laurus Labs had reported a net profit of ₹20 crore in the base quarter.

Revenue for the quarter increased by 35.2% from the same quarter last year to ₹1,653 crore, which is higher than the CNBC-TV18 poll expectation of ₹1,553.1 crore. Revenue growth during the quarter was supported by the robust performance of the CDMO business, with contributions from both the FDF and the API business.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 126% to ₹403 crore. A CNBC-TV18 poll had projected the figure to be ₹368.3 crore.

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EBITDA margin for the quarter expanded by more than 1,000 basis points from last year to 24.4%, higher compared to the CNBC-TV18 poll projection of 23.7%. This is the fourth straight quarter that Laurus Labs has reported EBITDA margin in excess of 20%.

Shares of Laurus Labs Ltd ended at ₹943.00, up by ₹19.10, or 2.07%, on the BSE.