Laurus Labs Shares Rally Nearly 8% After Q1 Profit Doubles On Strong CDMO Business

Laurus Labs shares climbed over 7% in Monday's trade after the pharmaceutical company reported a sharp rise in earnings for the June 2026 quarter. The company posted a 126% year-on-year jump in consolidated net profit to ₹368 crore, while revenue from operations rose 29% to ₹2,026 crore. Strong Contract Development and Manufacturing Organisation (CDMO) growth and steady demand for affordable medicines helped lift performance.

On 27 July, at market close, Laurus Labs Ltd. shares were trading at ₹1,711, up 6.86%, taking the stock's one-year return to around 92%.

What Drove Laurus Labs' Q1 Results?

According to the company's regulatory filing, EBITDA rose to ₹644 crore in the first quarter of FY27, up 66% from a year earlier. EBITDA margin expanded by 7% to 31.8%, supported by a higher contribution from CDMO operations, a better product mix, and improved operating efficiency.

Gross margin also improved to 62.7%, more than 3% higher than the same period last year.

Founder and Chief Executive Officer Dr. Satyanarayana Chava said the company delivered record quarterly revenue as commercial deliveries in the CDMO business continued to grow. He added that Laurus Labs also strengthened its specialised capabilities by signing agreements to in-license two antibody-drug conjugates (ADCs) and securing a new land parcel for future expansion.

Expansion Plans And Investor Interest

Laurus Labs said it continued investing in manufacturing capacity and niche technology platforms, with capital expenditure during the quarter accounting for 19% of sales. Its expansion plans for FY27 and FY28 remain on track and will support growth across small molecules, fermentation, peptides, gene therapy, and ADCs.

Foreign institutional investors also increased their stake in the company during the June quarter, raising their holding to 28% from 25.82%.

Laurus Labs said nearly 45% of its non-commercial CDMO business is currently linked to Phase III clinical supplies and is expected to move into commercial manufacturing after regulatory approvals. The company has already received global approval for one product, paving the way for commercial-scale production under that contract.

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