Laurus Labs (LAURUSLABS) Q3 24/25 earnings summary

Executive summary

• Q3 FY2025 saw strong growth driven by robust CDMO and formulations performance, with API sales declining due to lower ARV volumes; operational performance was further strengthened by demand for complex API capabilities.

• Strategic investments included Eight Roads Ventures and F-Prime Capital investing ₹120 crore in Laurus Bio to expand fermentation capacity, with Laurus Labs co-investing ₹40 crore and further rights up to ₹35 crore.

• Continued focus on high-value, complex small molecules, expansion of global business development teams, and new R&D center in Hyderabad to support pipeline growth.

• ESG score improved to 71 (+12 pts YoY) with ongoing investments in green technology and efficiency platforms.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved by the Board, with statutory auditors issuing unmodified review conclusions.

Financial highlights

• Q3 FY25 consolidated revenue was ₹1,415.05 crore, up 18% YoY; nine-month revenue reached ₹3,834 crore, up 6% YoY.

• Q3 EBITDA at ₹285 crore (20.1% margin), up 56% YoY; nine-month EBITDA at ₹638 crore (16.6% margin).

• Q3 net profit after tax at ₹92.94 crore, up 300% YoY; nine-month PAT at ₹125.57 crore, up 47% YoY.

• Gross margin for Q3 at 56.9%; nine-month gross margin at 55.8%.

• Net debt at ₹2,766 crore; net debt-to-EBITDA at 3.1x; ROCE at 6.8%.

Outlook and guidance

• FY25 guidance maintained for revenue growth and EBITDA margin improvement, with confidence in delivering full-year growth and near-term revenue acceleration.

• CDMO division expected to continue robust growth in FY2026, with further scale-up anticipated.

• ARV franchise revenues expected to stabilize between ₹2,300–2,500 crore annually over the next two years.

• No margin guidance for FY2026, but FY2025 EBITDA margin expected to be close to 20%.

• Focus on leveraging platform capabilities for medium/long-term contracts and offsetting generic pricing headwinds.