Laurus Labs Q4 profit rises 19% to Rs 279 crore led by CDMO momentum

Laurus Labs reported a 19 percent year‑on‑year (YoY) rise in net profit to Rs.279 crore for the March quarter, driven by strong execution in its contract development and manufacturing (CDMO) business and continued margin expansion on a better product mix, the company said on Thursday.

The company announced a second interim dividend of Rs.1.20 per equity share (60 percent of the face value of Rs.2 per equity share)

Revenue for the quarter rose 5 percent to Rs.1,812 crore, while EBITDA increased 10 percent to Rs.523 crore, lifting EBITDA margins to 28.9 percent from 27.7 percent a year earlier. Gross margins expanded sharply to 61.4 percent, reflecting a higher contribution from CDMO and improved operating leverage.

Chief executive Satyanarayana Chava said the quarter marked a continuation of the company’s accelerated performance trajectory.

“We significantly accelerated our performance in FY26, delivering strong revenue growth and expanded profitability, backed by successful commercial supplies for new chemical entities (NCE) programmes, new launches ramp‑up and sustained leadership in the anti‑retroviral segment,” Chava said.

The CDMO division remained the key growth driver in the quarter, with revenues rising 20 percent year on year to Rs.589 crore, led by small‑molecule projects and a sharp ramp‑up in biologics, which more than doubled from a year earlier. Management said late‑stage pipeline conversions and commercial API supplies continued to improve visibility.

The affordable medicines business, which includes APIs and finished dosage formulations, reported a marginal 1 percent decline in quarterly revenues, weighed down by softness in formulations, though the API segment continued to post double‑digit growth. The company said demand conditions in ARVs remained stable, even as it continued to diversify its revenue base.

CFO V V Ravi Kumar said operating leverage played a key role in supporting profitability.

“We sustained strong operating performance in Q4 FY26, achieving EBITDA margins of 28.9 percent, supported by continuing operating leverage,” Kumar said. He added that a favourable CDMO mix and disciplined cost management were also reflected in full‑year margin expansion.

For the full year FY26, Laurus Labs reported revenue of Rs.6,813 crore, EBITDA of Rs.1,826 crore and net profit of Rs.889 crore, marking year‑on‑year growth of 23 percent, 64 percent and 148 percent, respectively.

The company said improved profitability translated into stronger cash generation, allowing it to reduce leverage even as it stepped up capital expenditure to support future growth across peptides, fermentation and advanced biologics platforms.

Looking ahead, management said a robust late‑stage pipeline, expanding technology capabilities and ongoing investments position Laurus to sustain growth into FY27, while maintaining a focus on margins and balance‑sheet strength.