Laurus Labs zooms 128% from March low; hits new high in weak market

Laurus Labs share price movement

Laurus Labs’ share price hit a new high of ₹2,087, gaining 1 per cent on the BSE in Monday's intraday trade in an otherwise weak market ahead of its September quarter (Q1FY27) earnings next week. In comparison, the BSE Sensex was down 0.44 per cent at 74,398 at 11:25 AM.

In the past month, the stock price of the pharmaceutical company outperformed the market by surging 6 per cent, as against 1 per cent decline in the BSE Sensex. In the past three months, Laurus Labs’ market price rallied 35 per cent, compared to a 4.7 per cent decline in the benchmark index. 

Further, in the past six months, it soared 83 per cent, against a 5 per cent fall in the BSE Sensex. The stock price the company more-than-doubled or zoomed 128 per cent from its 52-week low of ₹913.35 touched on February 2, 2026.

Laurus Labs Q2 results on October 29, 2026

Last week, Laurus Labs informed BSE that the board of directors' meeting is scheduled for October 29, 2026, to consider and approve the un-audited financial results for the quarter and half-year ended September 30, 2026, and the payment of interim dividend for FY 2026-27.

Analysts at Kotak Institutional Equities expect Laurus' Synthesis revenue to grow 86 per cent year-on-year (YoY) to ₹880 crore (+5 per cent quarter-on-quarter (QoQ)) in September quarter (Q2FY27). The brokerage firm expects ARV API sales to grow 7 per cent YoY (+2 per cent QoQ) in Q2FY27. Also, led by steady traction in non-ARV APIs (+19 per cent YoY), analysts expect Laurus' overall API sales to grow 11 per cent YoY in Q2FY27. 

The brokerage firm expects Laurus to report a 240 bps YoY improvement in gross margins to 62.3 per cent (-40 bps QoQ) in Q2FY27. On the earnings before interest, tax, depreciation and amortization (EBITDA) front, analysts build in 67 per cent YoY growth to ₹680 crore in Q2FY27 with EBITDA margin expansion of 680 bps to 31.2 per cent.

CDMO sector outlook

The rising outsourcing and supply chain rebalancing initiatives by global pharmaceutical and biotech companies continue to be a major trigger driving the growth of CDMO majors.

The CDMO sector reported another quarter of double-digit revenue growth in the first quarter of financial year FY27 (Q1FY27) on a year-on-year basis. This highlighted the continued strength of underlying demand, despite a few companies facing temporary headwinds from customer destocking and product attrition, points out India Ratings and Research. It expects the sector's healthy growth momentum to sustain through FY27, supported by robust enquiry pipelines from global innovators, improving capacity utilisation levels, and ongoing capacity expansion initiatives.

The runway for Indian CDMO players remains strong as the segment, which currently generates revenue of $3-3.5 billion and accounts for about 2-3 per cent of global CDMO revenue of $140-145 billion, is expected to rise by seven times to about $22-25 billion by 2035, according to InCred Research.

Meanwhile, Laurus Labs’ CDMO growth for the June quarter was phenomenal due to higher contribution from late-stage clinical projects and commercial API supplies and strong recurring business from existing relationships. The CDMO quarterly run rate has gone up from ₹220-250 crore to ₹450-500 crore to now ₹800 crore in two years. 

As per management, the traction is broad-based, unlike an earlier bump driven by one large purchase order. Around 55 per cent of the CDMO revenue was derived from commercial suppliers and the remainder from late-stage clinical projects, thus assuring the sustainability of the run rate going ahead. The focus remains on peptides, ADCs and gene therapies, analysts at ICICI Securities said in Q1 result update.

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.