Laurus Labs Ltd. delivered exceptional financial results for the June quarter, with consolidated net profit surging 126% year-on-year to ₹368 crore, backed by 29% growth in total income. According to the latest filing submitted to Bombay Stock Exchange and National Stock Exchange on July 24, 2026, the pharmaceutical company's strong profitability performance has driven the stock to new heights, with shares rallying as much as 2.29% to hit a fresh 52-week high of ₹1,798 on Wednesday's trading session. The stock has gained approximately 10% over the past five trading sessions, significantly outperforming the NSE Nifty 50's 0.15% rise. At current levels, the stock has surged 97% from its February 2026 low of ₹913.25, demonstrating sustained investor confidence in the company's transformation strategy. Trading activity remained elevated with total volume traded reaching 2.53 times its 30-day average, while the Relative Strength Index stood at 71.46 reflecting strong buying momentum.
Laurus Labs delivered impressive financial results for the June quarter, with revenue reaching ₹2,026 crore, representing a 29% increase from the previous year's ₹1,570 crore. According to the latest filing, the pharmaceutical company's EBITDA jumped to ₹638 crore, translating into a margin of 31.5%, an expansion of 720 basis points compared with the previous year's 24.3%. The company's EBITDA margin expansion was driven by higher CDMO contribution, better business mix, and improved capacity utilisation. The management noted that EBITDA margins were strong and consistently improved at 31.5%, supported by improvement in capacity utilization and operating leverage. Gross margins improved by more than 3 percentage points to 62.7%, reflecting stronger product mix and enhanced profitability. Earnings per share (EPS) rose 127% to ₹6.8 from ₹3.0 in the corresponding period last year. The performance was supported by an improved business mix, a higher contribution from its Contract Development and Manufacturing Organisation business, and better capacity utilisation.
Laurus Labs has achieved a significant market milestone, surpassing Dr Reddy's Laboratories in market capitalisation to become the eighth-valuable pharmaceutical company in India. According to Business Standard, Laurus Labs' market cap stands at ₹96,572 crore, compared to Dr Reddy's market-cap of ₹95,445 crore. The pharmaceutical sector is led by Sun Pharmaceutical Industries with a ₹4.73 trillion market-cap, followed by Divis Laboratories at ₹2.02 trillion, Torrent Pharmaceuticals at ₹1.86 trillion, Cipla at ₹1.19 trillion, Zydus Lifesciences at ₹1.11 trillion, Lupin at ₹1.11 trillion, and Mankind Pharma at ₹1.08 trillion. In the past month, Laurus Labs outperformed the market by soaring 20% compared to a 1% rise in the BSE Sensex, with the stock trading 1.5% higher at ₹1,785 against the BSE Sensex's 1.12% gain.
The stock's record performance has been supported by 19 analysts now covering Laurus Labs, of which 11 have a 'buy' rating on the stock, while four each have a 'hold' and 'sell' rating. InCred has become the bull with the highest price target on the street for Laurus Labs, upgrading its rating to 'ADD' from 'hold' and raising its price target to ₹1,990 from ₹1,020 earlier. InCred's estimates carry the mix decisively towards the high-margin CDMO business, thereby lifting its EBITDA margin to nearly 30% by financial year 2028. DAM Capital maintained its 'buy' rating with a price target of ₹1,820, stating that CDMO will remain the primary driver of growth for the company. The brokerage noted that a pick-up in revenue utilization, driven by higher margin CDMO business, should lead continued improvement in profitability. Motilal Oswal has now joined the bullish camp, recommending a 'buy' rating with a target price of ₹1,980, valuing the company at 65x 12-month forward earnings. The brokerage highlighted that Laurus has achieved the highest-ever quarterly revenue and EBITDA in 1QFY27, with the performance driven by the CDMO and formulation segments. However, the average 12-month consensus price target of ₹1,630.33 implies a downside of 6.2%, suggesting some analyst caution despite the strong results.
A critical observation from the Q1FY27 results is the structural shift in Laurus Labs' revenue composition, with the CDMO segment now accounting for 43% of total revenue (combining small molecules and bio), compared to approximately 33% in the prior year. This diversification is reducing reliance on the cyclical Affordable Medicines business. The CDMO segment revenue surged 67% YoY to ₹870 crore, registering 48% sequential growth, driven by a 69% increase in small molecules revenue and a 21% rise in the bio business. According to the latest filing, small molecules revenue soared 69% to ₹835 crore, driven by steady progression of late-stage clinical projects and commercial API supplies. The Bio segment achieved 21% year-on-year growth to ₹35 crore. In contrast, the Affordable Medicines segment recorded total revenue of ₹1,156 crore, up 10% year-on-year, with Finished Dosage Forms (FDF) revenue growing 22% to ₹502 crore and API revenue remaining relatively flat at ₹654 crore. The CDMO quarterly run rate has gone up from ₹220-250 crore to ₹450-500 crore to now ₹800 crore in two years, demonstrating the company's successful portfolio transformation. Looking ahead, Laurus Labs expects the CDMO business to contribute more than 50% of its overall turnover by 2030. The CDMO segment's revenue growth was supported by commercial supplies and late-stage clinical project supplies, with one customer receiving global regulatory approval for a product, with offtake expected to scale up going forward.
