Laurus Labs gains after reporting multi-fold jump in Q2 PAT to Rs 195 cr

Profit before tax (PBT) jumped to Rs 269.73 crore in Q2 FY26 compared with Rs 22.81 crore in Q2 FY25, reflecting over elevenfold growth.

Total expenses increased 17.02% to Rs 1,410.70 crore in Q2 FY26, compared with Rs 1,205.49 crore in Q2 FY25. Cost of material consumed stood at Rs 676.75 crore (up 17.25% YoY), employee benefit expense was at Rs 215.56 crore (up 20.61% YoY) while finance cost stood at Rs 40 crore (down 23.97% YoY) during the period under review.

EBITDA surged 136% to Rs 429 crore in Q2 FY26, compared with Rs 182 crore in Q2 FY25. EBITDA margin improved to 26% in Q2 FY26 as against 14.9% recorded in Q2 FY25.

Revenue from CDMO jumped 53% to Rs 518 crore in Q2 FY26, compared with Rs 339 crore in Q2 FY25. Revenue from small molecules increased 58% YoY to Rs 471 crore in Q2 FY26, driven by several late phase and commercial deliveries. Revenue from Bio business stood at Rs 47 crore, up 18% YoY.

Revenue from Generics rose 28% to Rs 1,135 crore in Q2 FY26 compared with Rs 885 crore in Q2 FY25, primarily driven by continued uptake in ARV volumes, further supported by developed market supplies. Revenue from API increased 11% YoY to Rs 617 crore in Q2 FY26. Revenue from Finished Dosages Form (FDF) business climbed 58% YoY to Rs 518 crore in Q2 FY26.

On half-yearly basis, the company's consolidated net profit skyrocketed to Rs 354.83 crore in Q2 FY26 compared with Rs 29.93 crore posted in same quarter last year. Revenue from operations jumped 33.26% YoY to Rs 3,223.04 crore in Q2 FY26.

Satyanarayana Chava, founder & chief executive officer commented; 'We continue to maintain leadership position in ARVs and make encouraging progress in delivering important clinical and commercial programs. Our Q2 reflects on-going expansion of CDMO business, supported by sustained growth in Generics.

Earlier this quarter we announced land allocation from Andhra government and proposed investments to support future business expansion, augmenting our offerings across manufacturing scale and new technologies. We also made strategic investment of US$ 2mn in Aarvik Therapeutics to have access to novel Antibody-drug conjugates (ADC) technology and pipeline aimed at accelerating our integrated ADC services.

V V Ravi Kumar, executive director & chief financial officer, said, '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. We have achieved revenues of Rs 1,653 crore, representing 35% growth and EBITDA of Rs 429 crore, representing 136% growth. The EBITDA margins continue to remain very healthy at 26.0%, supported by continuing operating leverage

Overall, we reported strong H1 performance. We achieved Rs 3,223 crore in revenues, representing 33% growth and EBITDA of Rs 818 crore, representing 132% growth, resulting in 25.4% EBITDA margins marking over 10% pts improvement over last year. Gross margins improved by over 4.5% pts to 59.6% due to favorable CDMO mix and operational improvements. Net Debt leverage has decreased significantly over last year to 1.3x EBITDA despite continuing CAPEX investments. Going ahead, we retain our focus to invest behind high value CDMO/CMO business opportunities to drive near and long-term growth and returns for our shareholders.'

Meanwhile, the company's board declared a interim dividend of Rs 0.80 per share with face value of Rs 2 each for FY26. The record date for the dividend is fixed as 31 October 2025, and the payment will be made on or after 12 November 2025.

Laurus Labs is a research-driven pharmaceutical and biotechnology company. It develops and manufactures select Active Pharmaceutical Ingredients (APIs) and Finished Dosage Forms (FDF) across anti-retroviral, oncology, cardiovascular, and gastro therapeutics. It offers end-to-end CDMO services, supporting innovators from early-stage development to commercial production.

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