This article first appeared on GuruFocus .

• Revenue:INR2,026 crores, 29% growth.

• Gross Margin:62.7%, 3.3% higher than before.

• EBITDA:INR644 crores, 31.8% margin, 7% higher than previous quarter.

• CDMO Revenue:INR835 crores, 69% growth.

• Affordable Medicine Revenue:INR1,156 crores, 10% growth year-on-year.

• Bio Division Revenue:INR35 crores, 21% growth year-on-year.

• Profit After Tax:INR368 crores.

• ROCE:19%, up from 17.7% previous year.

• CapEx:INR394 crores for the quarter.

• Net Debt:INR2,656 crores, debt-to-EBITDA ratio of 1.28.

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Release Date: July 24, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Laurus Labs Ltd ( BOM:540222 ) reported a 29% growth in revenue, reaching INR2,026 crores, driven by strong performance in the CDMO segment and affordable medicine portfolio.

• The company achieved a significant expansion in EBITDA margins, which increased by 7 percentage points to 31.8%, reflecting improved operational efficiency.

• The CDMO business saw a remarkable 69% growth, with sales reaching INR835 crores, driven by late-stage clinical and commercial deliveries.

• Laurus Labs Ltd ( BOM:540222 ) maintained healthy gross margins at 62.7%, supported by a favorable product mix and process improvements.

• The company successfully passed 24 quality audits without any critical findings, demonstrating strong compliance and quality assurance.

Negative Points

• The company has increased its CapEx guidance from INR1,000 crores to INR2,000 crores for FY27, indicating higher capital expenditure requirements.

• Despite strong growth, the company did not disclose operating cash flow figures for the quarter, leaving some financial details unclear.

• The constant currency growth was reported at only 2%, which is relatively low compared to the overall revenue growth.

• The company faces potential margin pressures due to global conflicts and raw material cost fluctuations.

• Laurus Bio division, while growing, remains a small contributor to overall revenue, indicating a need for further development and scaling.

Q & A Highlights

Q: What led to the increase in CapEx guidance from INR 1,000 crores to INR 2,000 crores for FY27? A: Satyanarayana Chava, CEO, explained that the increase in CapEx is driven by the need to expand capacity to meet customer demands. The investments are focused on capacity expansion for existing customer requirements and new modalities within small molecules.