Laurus Labs posts Rs 195 crore net profit in Q2FY26 led by CDMO, generics momentum

Laurus Labs Ltd., on Thursday posted a dramatic 875% year-on-year jump in net profit to Rs 195 crore for the quarter ended September, powered by strong execution in its Contract Development and Manufacturing Organization (CDMO) segment and sustained growth in generics.

The surge in profitability was underpinned by a 35% rise in revenues to Rs 1,653 crore and a 136% jump in EBITDA to Rs 429 crore, lifting margins to 26% from 14.9% a year earlier. Gross margins expanded to 59.9%, up 470 basis points, driven by a favorable business mix and operational efficiencies.

“Our fundamentals remain strong,” said CFO V V Ravi Kumar. “The CDMO and generics businesses continue to deliver, and operating leverage is playing out well.”

CDMO revenues rose 53% to Rs 518 crore in Q2, led by late-phase and commercial deliveries in small molecules. Generics contributed Rs 1,135 crore, up 28%, supported by higher ARV volumes and developed market supplies.

The company also reported a sharp rise in profit before tax to Rs 270 crore, up from Rs 23 crore a year earlier. Diluted EPS stood at Rs 3.6, compared to Rs 0.4 in Q2FY25.

Laurus Labs said it continues to invest in capacity expansion and advanced technologies, including a $2 million strategic stake in Aarvik Therapeutics to access next-gen Antibody-Drug Conjugate (ADC) platforms.Shares of Laurus Labs gained 0.84% and were trading at Rs 931.60 apiece on BSE.