Laurus Labs (LAURUSLABS) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue was nearly flat year-over-year at ₹1,224 crore, with sustained CDMO demand but lower ARV and oncology API uptake; Q1 FY25 revenue grew 1% YoY to ₹1,195 crore, led by API and ARV demand but subdued CDMO delivery.

• Operational excellence, new small molecule R&D center in Hyderabad, and strategic investments in development and manufacturing capabilities are supporting long-term growth.

• Net profit after tax for Q2 FY25 was ₹19.95 crore, down from ₹37.12 crore in Q2 FY24; H1 FY25 consolidated net profit was ₹32.63 crore, a significant decline from ₹63.91 crore in H1 FY24.

• Standalone revenue and profit for Q2 and H1 FY25 were lower than the prior year.

Financial highlights

• Q2 FY25 revenue at INR 1,224 crore, flat YoY; H1 FY25 revenue at INR 2,419 crore, marginally up from INR 2,406 crore last year; Q1 FY25 revenue at ₹1,195 crore (+1% YoY, -17% QoQ).

• Gross margin held at 54-55% for Q2 and H1; Q1 gross margin improved to 55.1%.

• EBITDA margin was subdued at 15% for Q2 and H1; Q1 EBITDA margin was 14.3%.

• H1 profit after tax at INR 33 crore; consolidated net profit for H1 FY25 was ₹32.63 crore, down from ₹63.91 crore in H1 FY24.

• Interim dividend of INR 0.40 per share recommended.

Outlook and guidance

• H2 FY25 is expected to deliver growth, driven by facility ramp-up, scheduled CDMO project deliveries, and late-phase NCE opportunities.

• EBITDA margin guidance for FY25 maintained at around 20%, with Q3 and Q4 expected to be stronger.

• Net debt leverage and working capital expected to improve.