Laurus Labs Limited has invested ₹12.09 crore in Kurnool Renewables Private Limited (KRPL), an associate company, by acquiring equity shares through a rights issue. The transaction was disclosed to stock exchanges on October 6, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company purchased 1.21 crore equity shares at a face value of ₹10 each, aggregating to an investment of ₹12,09,60,500. This acquisition is in continuation of the intimation dated March 28, 2025, regarding the acquisition of equity shares in KRPL.

Following this investment, Laurus Labs holds a total of 2.12 crore equity shares in KRPL. The percentage of shareholding by the company remains unchanged at 26%.

Investment Details

The disclosure highlights that KRPL is an associate company of Laurus Labs. The investment reinforces the existing strategic relationship without altering the control structure or ownership percentage, as the rights issue allowed the parent company to maintain its proportional stake.

Laurus Labs reported a 126% year-on-year surge in net profit to ₹368 crore for the first quarter of FY27. Revenue grew 29% to ₹2,026 crore, supported by robust performance in its Contract Development and Manufacturing Organization (CDMO) segment and sustained momentum in affordable medicines.

Financial Performance

The company’s top-line growth was accompanied by significant margin expansion. Gross margins rose 330 basis points (bps) to 62.7%, while EBITDA margins expanded by 700 bps to 31.8%. This improvement reflects favorable product mix and improving operational leverage.

Segment Highlights

Revenue from the CDMO division saw strong growth driven by commercial project supplies. The Affordable Medicines segment also contributed steadily, led by finished dosage forms (FDF). The company maintained its global leadership in anti-retroviral (ARV) products while diversifying its portfolio across oncology, cardiovascular, and gastro therapeutics.

What the Numbers Show

R&D spending increased sharply by 74% year-on-year to ₹118 crore, representing 5.8% of revenue. This significant jump includes ₹35 crore in capital expenditure directed toward building infrastructure for advanced biologics, specifically gene therapy and antibody-drug conjugates (ADC). This indicates a strategic pivot toward high-value biotechnology capabilities alongside traditional small-molecule operations.

Capital Expenditure and Balance Sheet

Laurus continued heavy investment in manufacturing network expansion, with capital expenditure reaching ₹394 crore in the quarter, or 19% of sales. The company plans over ₹3,000 crore in cumulative capex for FY27 and FY28, with more than 85% allocated to growth projects. These investments target API, formulations, peptides, fermentation, and cell and gene therapies.

The balance sheet remains strong with a net debt-to-EBITDA ratio of 1.3x, unchanged from the previous quarter. Return on Capital Employed (RoCE) improved to 19.3% in 1QFY27, up from 17.7% in FY26, signaling efficient utilization of invested capital despite high capex outlays.