Laurus Labs Q1FY27 Results: Net profit surges 126% YoY to ₹368 crore
- Net profit surged 126% YoY to ₹368 crore in Q1FY27, up from ₹163 crore
- Revenue grew 29% YoY to ₹2,026 crore, driven by CDMO and affordable medicines
- EBITDA margins expanded 700 bps to 31.8%, reflecting operational leverage
- R&D spend jumped 74% to ₹118 crore, focusing on advanced biologics infrastructure
- Net debt-to-EBITDA ratio stable at 1.3x; RoCE improved to 19.3%
*this image is generated using AI for illustrative purposes only.
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.
| Metric | 4QFY26 | 1QFY27 | 1QFY26 | YoY Change |
|---|---|---|---|---|
| Revenue (₹ crore) | 1,812 | 2,026 | 1,570 | +29% |
| Gross Margin (%) | 61.4% | 62.7% | 59.4% | +330 bps |
| EBITDA (₹ crore) | 523 | 644 | 389 | +66% |
| EBITDA Margin (%) | 28.9% | 31.8% | 24.8% | +700 bps |
| Net Profit (₹ crore) | 279 | 368 | 163 | +126% |
| EPS (₹) | 5.2 | 6.8 | 3.0 | +127% |
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.
Historical Stock Returns for Laurus Labs
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.30% | +0.46% | +7.97% | +101.71% | +118.58% | +200.08% |
How might the aggressive ₹3,000 crore capex plan for FY27-FY28 impact Laurus Labs' near-term cash flows and debt levels despite the current strong RoCE?
What is the expected timeline for revenue contribution from the new gene therapy and antibody-drug conjugate (ADC) infrastructure currently under development?
Could the significant shift toward high-value biologics and CDMO services expose Laurus to different regulatory or geopolitical risks compared to its traditional affordable medicines portfolio?
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