4 days ago
Why are Laurus Labs shares up over 2% today? Explained
By Aditya Bhagchandani Published on July 28, 2025, 09:27 IST
Shares of Laurus Labs Ltd surged over 2% to ₹856.25 in early trade on Monday, making it one of the top gainers on the NSE. The sharp upmove comes on the back of a stellar Q1 performance, a major land allotment for expansion, and bullish commentary from top brokerages. Here's what's driving the stock higher: 1. Blockbuster Q1 FY26 Results
Laurus Labs posted a net profit of ₹163 crore, up a massive 1,185% YoY from ₹13 crore a year ago. Revenue : ₹1,570 crore (up 31% YoY)
: ₹1,570 crore (up 31% YoY) EBITDA : ₹389 crore (up 127% YoY)
: ₹389 crore (up 127% YoY) EBITDA Margin: Expanded significantly YoY, reflecting strong operating leverage
This marked the company's third consecutive earnings beat, with particularly robust performance in the CDMO (Contract Development and Manufacturing Organization) and ARV (antiretroviral) verticals. 2. Strategic Land Allotment for Laurus Pharma Zone
The Andhra Pradesh government allotted 531.77 acres to Laurus in IP Rambilli Phase-II (Anakapalli District) for the development of a Laurus Pharma Zone (LPZ). Planned investment : ₹5,630 crore
: ₹5,630 crore Job creation target : 6,350 people
: 6,350 people Phased execution over 8 years
This land is crucial for Laurus' long-term growth strategy, giving it the physical base to scale up manufacturing capabilities across API, formulations, and novel therapies. 3. Bullish Broker Commentary Motilal Oswal (MOSL) has maintained a 'Buy' rating, raising the target price to ₹970 (from ₹860) Upgraded gross margin guidance to 55–60% (from 50–55%) Strong CDMO visibility and pipeline Raised earnings estimates by 16% for FY26 and 7% for FY27
has maintained a rating, raising the (from ₹860) Antique Stock Broking gave a more balanced view, maintaining a 'Hold' but still raising the target to ₹700 (from ₹520), citing: Limited visibility in CDMO contracts ARV outlook steady but not exceptional Scale-up challenges in Bio CDMO segment
gave a more balanced view, but still raising the target to ₹700 (from ₹520), citing:
Still, the firm expects ~16% revenue CAGR from FY25 to FY28, and EBITDA margins to rise from 19% to 30% over the same period. Segmental Strength & Capex Plans The CDMO business is growing rapidly , now contributing more meaningfully to revenues
, now contributing more meaningfully to revenues The company is also building a new Gene/ADC facility in Hyderabad and a microbial fermentation plant in Vizag
and a Plans to invest ₹5,000 crore over the next 5 years, with net debt/EBITDA expected to stay in the 2.2x–2.5x range Market Snapshot: Stock Price : ₹856.25 (up 2.21%)
: ₹856.25 (up 2.21%) 52-week range : ₹417.70 – ₹855.00
: ₹417.70 – ₹855.00 Market Cap : ₹460.32 billion
: ₹460.32 billion P/E Ratio: 90.53
Laurus Labs' sharp rally today is driven by optimism around its blockbuster Q1 numbers, the government-backed land allotment, and analyst upgrades, all of which point to a long runway for growth. While near-term execution challenges remain, the market appears to be betting on Laurus' transformational expansion strategy and strong positioning in high-value pharma segments.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
