Laurus Labs climbs on robust Q1 earnings
Gross margin improved to 59.4% in Q1 June 2025, up from 55.1% in Q1 June 2024.
Profit before tax (PBT) stood at Rs 224 crore for Q1 June 2025, reflecting a 1,144% increase over Q1 June 2024.
EBITDA was Rs 389 crore in Q1 June 2025, up 127% compared to Q1 June 2024. EBITDA margin rose to 24.8%, up from 14.3% in Q1 June 2024.
In Q1 FY26, Laurus Labs Contract Development and Manufacturing Operations (CDMO) revenue more than doubled year-on-year to Rs 522 crore, driven by a 130% increase in small molecules revenue, although the bio-segment saw a 33% decline. Revenue from the Generics division rose 12% to Rs 1,048 crore, with APIs dipping 4% but finished dosages (FDF) surging 50%. Additionally, ARV revenues advanced 17% to Rs 647 crore during the period under review.
Dr. Satyanarayana Chava, founder & chief executive officer commented: "We made healthy progress to start the year with increasing contributions from CDMO business and continued advancement of pipeline projects, supported by Generic FDF. We are moving ahead with strong focus on commercial execution realizing the full potential from promising pipeline opportunities, business development and rapidly enhancing scale and technology capabilities. We also commenced construction of various facilities across CDMO, Generics and FDF. Once complete, these facilities will fortify our ongoing commitment of being a high-quality development and manufacturing partner at scale including advanced therapies. We remain confident in our strategic direction and commitment as the source of sustainable value creation now and well into the future."
V V Ravi Kumar, executive director & chief financial officer commented: "We delivered a solid performance in Q1, in line with expectations. We are pleased to see sustained growth momentum fueled by increasing uptake in CDMO deliveries and healthy business fundamentals. The EBITDA margins improved substantially to 24.8%, supported by continuing operating leverage. Gross margins stood strong at 59.4% due to favorable CDMO mix and ongoing process improvement initiatives. We will continue to invest fully behind high value business opportunities to drive near and long-term growth and returns for our shareholders."
Meanwhile, the Government of Andhra Pradesh has allotted 531.77 acres of land in IP Rambilli Phase-II, Anakapalli District, to the company for the establishment of Laurus Pharma Zone (LPZ), where it plans to set up manufacturing units for pharmaceutical products. Laurus Labs has earmarked an investment of Rs 5,630 crore for this project, which is expected to generate employment for 6,350 people in three phases over eight years. This land allotment marks a significant milestone, securing a crucial component for the companys future expansion plans.
Laurus Labs is a research-driven pharmaceutical and biotechnology company. It develops and manufactures select Active Pharmaceutical Ingredients (APIs) and Finished Dosage Forms (FDF) across anti-retroviral, oncology, cardiovascular, and gastro therapeutics. It offers end-to-end CDMO services, supporting innovators from early-stage development to commercial production.
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