Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company having a global leadership position in select Active Pharmaceutical Ingredients (APIs) including anti-retroviral, oncology drugs (incl High Potent APIs), Cardiovascular, and Gastro therapeutics. They also offer integrated CMO and CDMO services to Global Innovators from Clinical phase drug development to commercial manufacturing. Laurus employs 6500+ people, including around 1050+ scientists at more than 11 facilities approved by global agencies USFDA, WHO-Geneva, Japan-PDMA, UK-MHRA, EMA, TGA etc. Presenting below are its Q2 FY26 earnings results.
Q2 FY26 Earnings Results
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Revenue from Operations: ₹1,653 crore, up 35% YoY from ₹1,224 crore, fueled by strong CDMO and generics performance.
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Gross Margin: 59.9%, compared with 55.2% YoY, improving by 470 basis points due to favorable product mix and operating leverage benefits.
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EBITDA: ₹429 crore, up 136% YoY from ₹182 crore; EBITDA margin expanded sharply to 26% from 14.9% last year.
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Profit Before Tax (PBT): ₹270 crore, up from ₹23 crore YoY, more than 11x growth.
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Net Profit (PAT): ₹195 crore, up 870% YoY from ₹20 crore (₹195 crore vs ₹19.8 crore YoY), beating market estimates.
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Earnings Per Share (EPS): ₹3.6, up from ₹0.4 in Q2 FY25, reflecting an 800% increase.
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Interim Dividend: ₹0.80 per share declared (record date October 31, 2025, payment on or after November 12, 2025).
Segmental Performance
| Business Segment | Q2 FY26 Revenue | YoY Growth | Remarks |
|---|---|---|---|
| CDMO (Contract Development & Manufacturing) | ₹518 crore | +53% | Continued momentum in late-phase clinical and commercial delivery projects; major growth driver with increasing global clientele. |
| Generics | ₹1,135 crore | +28% | Driven by higher ARV (antiretroviral) volumes and developed market supplies. |
| API (Active Pharmaceutical Ingredients) | ₹617 crore | +11% | Strong recovery in non-ARV business amid stabilized pricing environment. |
| FDF (Finished Dosage Formulations) | ₹518 crore | +58% | Growth led by increased production efficiency and new molecule launches. |
| Bio Business | ₹47 crore | +18% | Continued expansion in biologics manufacturing supported by partnerships. |
Management Commentary
Dr. Satyanarayana Chava, Founder & CEO, Laurus Labs:
“Our Q2 FY26 results showcase strong growth across all core businesses. We continue to maintain leadership in ARVs while advancing our CDMO offerings, which have become a significant revenue contributor. The recently approved land allocation from the Andhra Pradesh government and our planned investments underscore our commitment toward capacity enhancement and adoption of advanced technologies. Our strategic investment in Aarvik Therapeutics gives us access to next-gen Antibody-Drug Conjugate (ADC) technology, furthering our integrated drug services ambitions.”.
V.V. Ravi Kumar, CFO:
“Our fundamentals remain robust with improved margins and operational efficiencies. The strong top-line growth from CDMO and generics aligns with our goal of sustaining EBITDA margin above 25% going forward.”.
Strategic Developments
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Expansion Initiatives:
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Land acquired in Andhra Pradesh for expansion of manufacturing and R&D infrastructure.
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Strategic investment of US$ 2 million in Aarvik Therapeutics to enhance ADC capabilities in oncology and immunotherapy pipeline.
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Margin Outlook: Management expects EBITDA margin to remain above 24% for FY26 supported by higher asset utilization and value-added CDMO operations.
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Balance Sheet: Strong cash generation supports ongoing CAPEX programs aimed at scaling next-gen biologics and high-potency manufacturing.
Q1 FY26 Earnings Results
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Revenue: ₹1,570 crore, up 31% YoY.
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EBITDA: ₹389 crore; margin 24.8%.
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PAT: ₹163 crore, up 15% QoQ and 710% YoY from the base quarter last year.
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EPS: ₹3.0.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.