Laurus Labs Ltd.Margin Expansion & CDMO Transformation

Laurus Labs delivered exceptional FY26 performance with revenue growing 23% YoY to ₹6,813 crore and PAT surging 148% to ₹889 crore, driven by robust CDMO expansion and operational excellence.

EBITDA margin expanded significantly by 670 basis points to 26.8%, reaching a record 28.9% in Q4, propelled by improved product mix and process optimization. The CDMO segment demonstrated strong momentum with 38% growth to ₹2,080 crore, now contributing over 30% of total revenue versus 13% six years ago. Three commercial NCE programs launched in the last 18 months show multi-year patent life with no destocking concerns, differentiating Laurus from peers facing inventory challenges.

Management expressed high confidence in maintaining or improving EBITDA margins in FY27 and announced aggressive ₹3,000 crore capex over FY27-28, with 90% customer-committed for mid and large-scale manufacturing. The company's strategic transformation continues with ARV revenue stabilizing at ₹2,800 crore while CDMO targets 50% revenue contribution by 2030. ROCE improved dramatically to 17.7% from 9.7% previously, reflecting enhanced capital efficiency.