Laurus Labs (LAURUSLABS) Q2 25/26 earnings summary

Executive summary

• Achieved strong growth in Q2 and H1 FY26, driven by robust demand in ARV, CDMO, and Generics segments, with continued investments in capacity and technology platforms.

• H1 FY26 revenues reached ₹3,223 crore, up 33% year-over-year, with EBITDA at ₹818 crore and margin of 25.4%.

• Gross margin expanded to ~60% due to a healthier business mix and operational improvements.

• Allotted 532 acres in Vizag for a new pharma complex, planning $600 million investment over eight years.

• Unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025, were approved by the Board.

Financial highlights

• Q2 FY26 consolidated revenue was ₹1,653.47 crore, up 35% year-over-year; H1 FY26 revenue at ₹3,223 crore, up 33%.

• Q2 FY26 net profit after tax was ₹194.49 crore; H1 FY26 net profit was ₹358 crore.

• Gross margin for Q2 and H1 at ~60%; EBITDA margin for Q2 at 26% and H1 at 25.4%.

• Net debt at INR 2,100 crore; debt/EBITDA improved to 1.3x from 1.8x sequentially and 3.4x year-over-year.

• Operating cash flow for H1 FY26 was ₹1,093 crore, up from ₹57 crore year-over-year.

Outlook and guidance

• Confident in improved growth for the rest of the year, with ARV sales expected around INR 2,500 crore ± INR 200 crore.

• CDMO segment expected to continue strong growth, with ongoing investments in capacity and technology.

• Animal health revenues anticipated to contribute meaningfully from next fiscal year.

• Underlying EBITDA margins anticipated to remain higher, driven by better asset utilization and product mix.

• Ongoing CAPEX investments to support long-term growth while maintaining balance sheet discipline.