Laurus Labs (LAURUSLABS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached ₹1,570 crore, up 31% year-over-year, driven by strong CDMO and generics growth, with robust margin expansion and major capacity investments.

• EBITDA stood at ₹389 crore with a margin of 24.8%, up 10.5 percentage points year-over-year, reflecting CDMO ramp-up and operating leverage.

• Net profit after tax for Q1 was ₹163 crore, a significant increase year-over-year, though lower sequentially.

• Major capacity expansions and investments in manufacturing and specialized modalities continued, with CAPEX at 17% of sales.

• The Board approved the results on July 25, 2025, with auditors issuing an unmodified review conclusion.

Financial highlights

• Revenue rose 31% year-over-year to ₹1,570 crore, but declined 9% sequentially from Q4 FY25.

• Gross margin expanded to 59.4%, up over 4 percentage points year-over-year, driven by product mix and process improvements.

• EBITDA margin rose by 10.5 percentage points to 24.8%, reflecting better operating leverage.

• Net profit surged to ₹163 crore, up over 1,100% year-over-year.

• R&D spend was ₹68 crore (4.3% of sales), including cell and gene therapy investments.

Outlook and guidance

• Management expects gross margins to remain in the 55–60% range as CDMO share increases.

• Asset turnover is expected to normalize over the next two years as new CDMO projects ramp up.

• New gene/ADC and microbial fermentation facilities are expected to commence operations by end of 2026.

• Non-ARV formulations capacity expansion to drive growth from Q4 onwards.

• ARV segment guidance remains cautious due to price drop risks, with incremental volumes expected to offset declines.