Pharmaceutical company Laurus Labs shares rallied as much as 7.65% on Monday to hit a fresh 52-week high of Rs 1,725 apiece on the BSE after the company reported a strong set of earnings for the June quarter (Q1FY27).
The stock has surged over 72% in the past six months. At 2:00 PM, Laurus Labs was trading 7.49% higher at Rs 1,722.30 per share, outperforming the broader market, while the BSE Sensex was up 0.92% at 76,759.
The rally came after the company posted its highest-ever quarterly revenue, supported by a better business mix, a higher contribution from its contract development and manufacturing organisation (CDMO) business and improved capacity utilisation, which also led to a sharp expansion in margins.
For the June quarter, consolidated revenue rose 29% year-on-year (YoY) to Rs 2,026 crore from Rs 1,570 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 67% to Rs 638 crore from Rs 382 crore, while EBITDA margin expanded to 31.5% from 24.3%. Net profit more than doubled to Rs 368 crore from Rs 163 crore in the year-ago period.
The CDMO business remained the key growth engine during the quarter. Revenue from the segment rose to Rs 870 crore, registering growth of 67% YoY and 48% sequentially, driven by supplies for commercial projects. Laurus Labs said it expects the CDMO business to contribute more than 50% of its overall turnover by 2030.
The Affordable Medicines business also delivered steady growth, with revenue increasing 10% YoY to Rs 1,156 crore, supported by stable demand in the ARV portfolio and growth in the finished dosage formulations (FDF) business.
On its KRKA joint venture, the company said construction of the FDF manufacturing site is progressing as planned, with Phase-I production blocks expected to commence operations by mid-2027. The facility will focus on high-potent and general oral solid dosage products.
Laurus Labs also doubled its FY27 capital expenditure guidance from Rs 1,000 crore to Rs 2,000 crore within six months, citing strong near-term demand from existing customers. The company added that it sees multiple opportunities in the GLP-1 segment, with peptides expected to become a meaningful business area over time.
Laurus Labs Outlook
Going forward, Laurus Labs said it aims to become a fully integrated pharmaceutical company over the next three to four years, with capabilities spanning APIs, drug products, generic contract manufacturing and new chemical entity offerings.
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