Laurus Labs Reports Strong Q2 Performance with 35% Revenue Growth and Significant Margin Expansion
Laurus Labs announced robust Q2 financial results with revenue reaching ₹1,653 crore, a 35% year-on-year increase. Net profit surged by 875% to ₹195 crore. CDMO segment revenue grew 53% to ₹518 crore, while Generics business revenue increased 28% to ₹1,135 crore. The company plans significant investments, including over $600 million in manufacturing and R&D, and has been allotted 532 acres for a new pharma complex in Vizag. An interim dividend of ₹0.80 per share was approved.

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Laurus Labs , a leading pharmaceutical and biotechnology company, has announced robust financial results for the second quarter, demonstrating significant growth across key metrics.
Financial Highlights
The company reported a substantial increase in revenue, reaching ₹1,653 crore in Q2, marking a 35% year-on-year growth. This performance was primarily driven by strong execution in the Contract Development and Manufacturing Organization (CDMO) segment and supported by growth in the Generics business.
Laurus Labs' profitability saw a remarkable improvement:
Metric | Q2 Current | Q2 Previous | YoY Change |
---|---|---|---|
Revenue | ₹1,653.00 | ₹1,224.00 | +35% |
EBITDA | ₹429.00 | ₹182.00 | +136% |
EBITDA Margin | 26.00% | 14.90% | +11.1% |
Net Profit | ₹195.00 | ₹20.00 | +875% |
EPS (Diluted) | ₹3.60 | ₹0.40 | +800% |
The company's gross margins expanded by 470 basis points to 59.9%, attributed to a favorable product mix.
Segment Performance
The CDMO segment continued its strong momentum, with revenues increasing by 53% year-on-year to ₹518 crore in Q2. The small molecules division within CDMO grew by 58%, while the Bio division saw an 18% increase.
The Generics business also performed well, with revenues growing 28% year-on-year to ₹1,135 crore. Within this segment, Finished Dosage Formulations (FDF) showed impressive growth of 58%, while the API business grew by 11%.
Strategic Developments
Laurus Labs announced significant investments to secure future growth:
Land Allocation: The company has been allotted 532 acres of land by the Government of Andhra Pradesh to create a state-of-the-art pharma complex in Vizag.
Investment Plan: Laurus Labs plans to invest over $600 million in pharmaceutical manufacturing and R&D over the next several years, potentially creating 6,350 employment opportunities.
Strategic Investment: The company has made a $2 million investment in Aarvik Therapeutics to access next-generation Antibody-drug conjugates (ADC) technology and R&D capabilities.
Capacity Expansion: Ongoing expansion of CMO oral dosage capacity and construction of new facilities for gene therapy and ADC in Hyderabad, as well as a microbial fermentation facility in Vizag.
Dividend Announcement
The Board of Directors has approved an interim dividend of ₹0.80 per equity share (40%).
Management Commentary
Dr. Satyanarayana Chava, Founder & Chief Executive Officer, commented on the results, stating, "We continue to maintain leadership position in ARVs and make encouraging progress in delivering important clinical and commercial programs. Our Q2 reflects ongoing expansion of CDMO business, supported by sustained growth in Generics."
V V Ravi Kumar, Executive Director & Chief Financial Officer, added, "Our strong Q2 performance was in line with expectations. We are pleased to report that fundamentals of our business remain strong, with sustained growth momentum in CDMO and Generic business."
Laurus Labs' focus on R&D-driven commercial strategy and investments in high-value CDMO/CMO business opportunities positions the company well for continued growth and value creation for shareholders.
Historical Stock Returns for Laurus Labs
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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+1.14% | +7.05% | +2.68% | +43.60% | +107.90% | +178.47% |