Laurus Labs Issues Newspaper Notice on TDS Requirements for 2nd Interim Dividend for FY 2025-26

Laurus Labs Limited filed a disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on May 08, 2026, enclosing copies of newspaper advertisements published on May 07, 2026. The advertisements appeared in Business Standard (English) and Prajasakti (Telugu), notifying shareholders about the submission of TDS-related documents pertaining to the 2nd Interim Dividend for FY 2025-26.

Dividend Details and Record Date

The Board of Directors, at their meeting held on April 30, 2026, approved the payment of a 2nd Interim Dividend of ₹1.20/- (60%) per equity share of ₹2/- each for the Financial Year 2025-26. The Record Date for this dividend was set as May 08, 2026.

TDS Framework Under the New Income Tax Act, 2025

Pursuant to the notice, shareholders were informed that under the Income Tax Act 2025, which officially replaced the Income Tax Act, 1961 effective April 01, 2026, dividends distributed or paid to shareholders remain fully taxable in their hands at their applicable income tax slab rates. For the Tax Year 2026-27, companies are mandated to deduct tax at source (TDS) on dividends paid to resident individuals at a standard rate of 10%, applicable only if the aggregate dividend amount exceeds ₹10,000 in a tax year — a threshold increased from the previous ₹5,000 limit. These provisions have been restructured and consolidated under Section 393 of the new Income Tax Act, 2025.

Eligible resident shareholders may submit a single consolidated Form 121 (which replaced the previous Forms 15G and 15H) to the Company to avoid TDS deduction.

TDS Rates for Resident Shareholders

The prescribed TDS rates for resident shareholders are as follows:

Particulars: TDS Rate With PAN: 10% or as may be notified by the Government of India Without / Invalid PAN: 20% or as may be notified by the Government of India Submission of declaration in Form 121: NIL

Shareholders are requested to update their PAN with their depository participants to avail the benefit of the lower TDS rate and to enable the Company to issue TDS Certificates. Shareholders eligible to receive dividends above ₹10,000/- but without taxable income may submit Form 121 by sending an email to secretarial@lauruslabs.com on or before May 14, 2026.

TDS Requirements for Non-Resident Shareholders

For non-resident shareholders, TDS is applicable at 20% plus applicable Surcharge and Cess, or the applicable Tax Treaty Rate under the Double Tax Avoidance Treaty (DTAA) between India and their country of residence, whichever is lower. To avail treaty benefits, non-resident shareholders were required to submit the following documents to secretarial@lauruslabs.com on or before May 14, 2026:

Declaration for "No Permanent Establishment" in India

Beneficial Ownership Declaration

Tax Residency Certificate (TRC) for Tax Year 2026-27

Form 41 (which officially replaced Form 10F under the new Income Tax Rules, 2026 and the Income Tax Act, 2025, effective April 01, 2026)

Copy of Indian PAN (if available)

Additional Shareholder Instructions

Shareholders whose email IDs and/or bank account details for receipt of dividend are not registered with their Depository Participants were requested to register or update such details with their respective Depository Participants. The notice was also made available on the Company's website at www.lauruslabs.com .

The disclosure was signed by G. Venkateswar Reddy, Company Secretary & Compliance Officer, Laurus Labs Limited, dated May 08, 2026.

Laurus Labs Limited has released the transcript for its Q4 FY26 earnings conference call, hosted on April 30, 2026, in compliance with Regulation 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by G. Venkateswar Reddy, Company Secretary & Compliance Officer. The call was moderated by Ms. Payal Shah of DAM Capital Advisors and featured key management including Dr. Satyanarayana Chava (Founder & CEO), Mr. V. V. Ravi Kumar (ED & CFO), Mr. Krishna Chaitanya Chava (ED, Head CDMO), and Ms. Soumya Chava (ED, Generics and Commercial).

Financial Performance Overview

Laurus Labs delivered robust operational and financial performance for FY26. Total income from operations reached INR6,813 crores, reflecting a 23% growth over the previous year. Profit after tax surged 148% to INR889 crores. EBITDA margins expanded by 6.7 percentage points to 26.8%, supported by healthy gross margins at approximately 60%. For Q4 specifically, revenues stood at INR1,812 crores with 5% growth, EBITDA was INR523 crores at a margin of 28.9%, and net profit was INR279 crores. ROCE improved significantly to 17.7% from 9.7% in the prior year.

Financial Metric FY26 Q4 FY26 Total Revenue INR6,813 crores (+23%) INR1,812 crores (+5%) Net Profit INR889 crores (+148%) INR279 crores EBITDA INR1,826 crores INR523 crores EBITDA Margin 26.8% 28.9% Gross Margin 60.40% 61.40% ROCE 17.70% — Net Debt INR2,285 crores — Debt/EBITDA 1.25x —

Management attributed gross margin improvement to raw material price softening and process improvements. The CFO noted that net debt stood at INR2,285 crores with a debt-to-EBITDA ratio of 1.25x, improved from 2.3x in the prior year.

Business Segment Performance

The CDMO business was the primary growth driver, clocking revenues of INR2,080 crores for the full year. Small molecule CDMO recorded sales of INR1,896 crores, reflecting approximately 38% growth, driven by late-stage pipeline programs, commercial NCE API supplies, and ramp-up of growth projects. Q4 small molecule CDMO sales stood at approximately INR524 crores. The Laurus Bio division reported Q4 sales of approximately INR65 crores, up approximately 124% year-on-year, while full-year sales grew approximately 15%.

The Affordable Medicines division (formerly Generics) delivered INR4,733 crores in full-year revenue, reflecting 18% growth, driven by higher volumes across ARV and oncology portfolios and strong traction from recent launches in developed markets. Q4 revenue from this division stood at INR1,223 crores. Oral solid formulation capacity was increased by 20% in FY26 to 12 billion units. On the regulatory front, the company has filed a cumulative 92 DMFs to date, with 7 dossiers filed and 6 approvals received in FY26, taking cumulative product filings to 94.

Segment FY26 Revenue Growth CDMO (Total) INR2,080 crores — Small Molecule CDMO INR1,896 crores ~38% Affordable Medicines INR4,733 crores 18%

Management noted that ARV revenues for FY26 were approximately INR2,800 crores, with two-thirds from API and one-third from formulations. The ARV share of total revenue has declined from 67% six years ago to 41% in FY26, while CDMO's share has grown from 13% to over 30% over the same period.

Strategic Expansion and Capex

Laurus Labs invested INR1,070 crores in capex for the full year, with over 75% directed towards expanding CDMO and CMO capabilities and the remainder towards common infrastructure. For Q4 alone, capex investment was approximately INR335 crores. Management has increased capex guidance to approximately INR3,000 crores over the next two years, up from the earlier guidance of INR1,000 crores annually, with 90% of project spend directed towards mid- and large-scale manufacturing.

Capex Parameter Details FY26 Total Capex INR1,070 crores Q4 FY26 Capex ~INR335 crores 2-Year Capex Guidance ~INR3,000 crores CDMO/CMO Share of Capex >75%

Key expansion initiatives include a greenfield manufacturing project (Unit 7) with a combined reactor volume of over 2,000 cubic meters, with first commercial validation expected by March 2027 and four additional manufacturing lines in FY28. A commercial-scale peptide manufacturing block is targeted for validation during Q2 FY27. A fermentation greenfield site for Laurus Bio (Phase 1, 400,000 liters) is expected to be operational by end of 2026. Additional capacity is being added at Unit 10 for Animal Health, and a formulation facility under the KRKA joint venture in Hyderabad is expected to complete Phase 1 by mid-2027. The company's total reactor volume for small molecule API and intermediate manufacturing has exceeded 8,200 cubic meters in FY26.

Management Commentary and Outlook

Dr. Satyanarayana Chava expressed confidence in maintaining or improving EBITDA margins in FY27, driven by better product mix and operating leverage. He noted that CDMO revenues are expected to reach 50% of overall sales by 2030, while ARV revenues are expected to remain broadly constant in absolute terms at around INR2,800 crores but decline as a percentage of total revenue. Management indicated that the CDMO pipeline is robust, with multiple late-stage programs underway, and that concentration risk is limited given diversification across programs and partners.

On the macroeconomic front, management acknowledged some solvent price pressure in Q4 FY26 due to geopolitical disruptions but stated no supply disruptions were anticipated through at least end of June. The effective tax rate is expected to be approximately 25% to 26%. Gross debt may increase slightly in FY27, but the debt-to-EBITDA ratio is expected to remain at similar or softer levels. R&D spending for FY26 was 4.1% of sales, up 10% year-on-year, with a similar percentage expected going forward. The company underwent approximately 132 quality audits in FY26 and passed all inspections without critical findings.

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