Laurus Labs (LAURUSLABS) Q2 25/26 earnings summary

Executive summary

• Achieved strong H1 FY26 performance with ₹3,223 crore in revenues, marking 33% year-over-year growth, driven by robust demand in ARV, CDMO, and Generics segments, with continued investments in capacity and technology platforms.

• EBITDA reached ₹818 crore with a margin of 25.4%, reflecting improved operational execution and business mix.

• 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 on October 23, 2025.

• Statutory auditors issued an unmodified review conclusion for both standalone and consolidated results.

Financial highlights

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

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

• Q2 profit after tax at ₹194.49 crore; H1 profit after tax at ₹358 crore.

• Net debt-to-EBITDA improved to 1.3x from 1.8x sequentially and 3.4x year-over-year.

• Operating cash flow increased to ₹1,093 crore; CAPEX at ₹489 crore (15% of revenues).

Outlook and guidance

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