Highlights
- Laurus Labs posted 35% revenue growth in Q2 FY26, with EBITDA margins expanding to 26%.
- Net profit surged 875% year-on-year to Rs 195 Cr, driven by operating leverage and margin improvement.
- Interim dividend of Rs 0.80 per share declared; net debt reduced to 1.3x EBITDA.
Laurus Labs Ltd reported revenues of Rs 1,653 Cr for Q2 FY26, marking a 35% year-on-year increase compared with Rs 1,224 Cr in Q2 FY25. For H1 FY26, revenues stood at Rs 3,223 Cr, up 33% from Rs 2,419 Cr in the corresponding period last year.
Gross margins improved to 59.9% in Q2 FY26 from 55.2% a year ago. For H1 FY26, gross margins were reported at 59.6%, reflecting an expansion of over 4.5 percentage points year-on-year.
EBITDA for Q2 FY26 came in at Rs 429 Cr, compared to Rs 182 Cr in Q2 FY25, translating to a 136% increase. EBITDA margins expanded to 26.0% during the quarter. On a half-year basis, EBITDA rose 132% to Rs 818 Cr, with margins at 25.4%.
Profit before tax stood at Rs 270 Cr in Q2 FY26, compared with Rs 23 Cr in the prior year quarter. Net profit rose to Rs 195 Cr from Rs 20 Cr, while diluted EPS increased to Rs 3.6 from Rs 0.4.
CDMO Growth Anchored by Small Molecules
The CDMO segment reported revenues of Rs 518 Cr in Q2 FY26, up 53% year-on-year. H1 FY26 revenues for CDMO stood at Rs 1,040 Cr, marking a 74% increase.
Within CDMO, small molecules contributed Rs 471 Cr in Q2 FY26 and Rs 964 Cr in H1 FY26, reflecting growth of 58% and 88%, respectively. The Bio division reported Q2 revenues of Rs 47 Cr, up 18% year-on-year, while H1 revenues declined 8% to Rs 76 Cr due to customer-specific scale-up and scheduling issues.
The company stated that fermentation manufacturing operations at its Vizag site are expected to commence by the end of 2026.
Generics Business Sees Volume Uptake
The Generics segment posted Q2 FY26 revenues of Rs 1,135 Cr, representing a 28% increase year-on-year. H1 revenues for the division stood at Rs 2,183 Cr, up 20%.
API revenues rose 11% year-on-year in Q2 to Rs 617 Cr, while formulation (FDF) revenues increased 58% to Rs 518 Cr. ARV revenues, including API and FDF combined, were reported at Rs 733 Cr in Q2 FY26 and Rs 1,380 Cr in H1 FY26.
The company reported cumulative filings of 91 DMFs and 90 developed market FDF filings to date.
R&D, Investment and ESG Updates
R&D expenditure during H1 FY26 was Rs 137 Cr, accounting for 4.3% of revenues. The company-initiated construction for a Gene/Antibody drug conjugates cGMP facility, expected to be completed by end-2026.
It also announced a strategic investment of US$ 2mn in Aarvik Therapeutics to access antibody-drug conjugate technology.
An interim dividend of Rs 0.80 per share was declared. Net debt leverage decreased to 1.3x EBITDA despite continued capital expenditure, which stood at 15% of sales.
Technical summary
Laurus Labs is currently trading around ₹1,065.00, positioned above its 20-day SMA near ₹1,016.20 and 50-day SMA near ₹1,038.00, both of which are acting as near-term reference levels. The recent price behaviour reflects stabilisation following earlier volatility.
The 14-day RSI at 58.57 suggests moderate momentum, without indicating extreme conditions. On the downside, the ₹1,000–₹920 zone serves as an important support band. On the upside, the ₹1,150–₹1,250 range represents a key resistance area in the near term.
Laurus Labs reported revenue growth of 35% in Q2 FY26 and 33% in H1 FY26, supported by CDMO and Generics segments. EBITDA margins expanded above 25%, while net profit rose sharply year-on-year. The company declared an interim dividend of Rs 0.80 per share and continued investments in manufacturing, R&D and advanced therapy capabilities.
FAQs
- What were Laurus Labs’ Q2 FY26 revenues?
Laurus Labs reported Q2 FY26 revenues of Rs 1,653 Cr, reflecting 35% year-on-year growth compared with last year. - How did EBITDA margins change in H1 FY26?
EBITDA margins for H1 FY26 stood at 25.4%, improving over 10 percentage points from previous year levels. - What dividend did Laurus Labs declare?
The company declared an interim dividend of Rs 0.80 per share for shareholders during FY26.