Synopsis
Laurus Labs delivered strong performance in the June quarter, with net profit more than doubling and revenue up 29% year-on-year, driven by strong growth in its CDMO business and affordable medicines portfolio. The company also reported margin expansion, reaffirmed its investment plans and continued to attract increased institutional interest, thereby boosting investor confidence.
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ETMarkets.comShares of Laurus Labs are rebounding after strong quarterly profits, margin expansion and solid growth in the CDMO business.
Laurus Laboratories shares jumped 4.05% to Rs 1,666 during Monday’s trading session after the company reported a stellar performance for the June 2026 quarter. The rally was fueled by a 126% year-on-year rise net profit and revenue growth of 29%, driven by strong CDMO performance and continued demand for affordable medicines.
According to the company’s regulatory filing, consolidated net profit for the first quarter of FY27 stood at Rs 368 crore, compared to Rs 163 crore in the same quarter last year, a strong growth of 126% year-on-year. Operating revenue grew 29% year-on-year to Rs 2,026 crore, compared to Rs 1,570 crore in the corresponding period.
Laurus Labs highlighted that growth during the quarter was driven by increased commercial projects in its contract development and manufacturing organization (CDMO) segment, as well as continued momentum in its affordable medicines portfolio.
The company reported an EBITDA of Rs 644 crore, which translates to a margin of 31.8%, an expansion of 7 percentage points from the previous year. This improvement is explained by a higher CDMO contribution, a better mix of activities and operational efficiency.
Gross margins also improved by more than 3 percentage points to 62.7%, reflecting a stronger product mix and improved profitability.
Expansion plans remain on trackLaurus Labs continued to invest in expanding its manufacturing capabilities and developing niche technology platforms, with capital expenditures during the quarter accounting for 19% of sales.
The company said its planned capital expenditures for FY27 and FY28 remain on schedule and will support growth initiatives in key areas including small molecules for human and animal health, fermentation, peptides, gene therapy and antibody-drug conjugates (ADCs).
Management commentaryDr. Satyanarayana Chava, Founder and CEO of Laurus Labs, said the company achieved record quarterly revenue as well as improved profitability, driven by increased commercial CDMO shipments and sustained performance in affordable medicines.
He added that the company continued to strengthen its integrated offerings and specialized capabilities, while achieving key milestones including entering into agreements to license two antibody-drug conjugates and ultimately handing over a new parcel of land to support future expansion.
Stock market performance and technical outlookLaurus Labs shares have generated strong returns over the medium to long term. The stock has gained about 45% over the past three months and has surged nearly 92% over the past year. The company currently has a market capitalization of around Rs 86,505 crore.
From a technical perspective, the 14-day relative strength index (RSI) stands at 66.3, indicating strong momentum while remaining below the overbought zone of 70. The stock is trading above the eight key simple moving averages (SMA), reflecting a positive trend.
Institutional interest increasesFIIs increased their stake in Laurus Labs during the June 2026 quarter, with stakes increasing from 25.82% to 28%, indicating stronger institutional interest in the stock.
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