LAURUSLABS Q2 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹1,653 Cr
verified against source
Revenue YoY
35%
reported change
EBITDA
₹429 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Laurus Labs delivered a 35% YoY revenue growth to INR 1,653 crore in Q2 FY26, driven by robust antiretroviral (ARV) demand and continued CDMO momentum. The CDMO segment posted INR 471 crore in Q2 with 88% YoY growth for H1, while the Generics division grew 28% to INR 1,135 crore. EBITDA margin expanded 200bps YoY to 26%, reflecting operating leverage from higher commercial CDMO molecule contributions and improved product mix. The company received 532 acres of land in Vizag for a new INR 5,000 crore (~$600M) manufacturing complex, signaling aggressive capacity expansion. Management guided INR 1,000 crore annual CapEx and maintained ARV outlook at INR 2,500 crore ± INR 200 crore. R&D spend remains at 4.3% of sales focusing on advanced modalities. Risks include near-term operating deleverage from continued CapEx investments (expected for 2 more years) and potential ARV market disruption from a new $40 HIV PrEP injection launching in 2027.
Colored figures show movement against the previous available record.
Guidance to track
- Company invested INR 489 crore in H1 and expects to invest similar amount in H2, maintaining aggressive capital deployment for capacity expansion.
- Progressing from current 0.9x to historical average of 1.1x; management expects improvement over coming years as capacities reach full utilization.
- Operating leverage expected to continue improving margins as CDMO commercial molecule mix grows and asset utilization increases.
- Full-year antiretroviral sales guidance maintained despite H1 achieving INR 1,380 crore; management expects H2 to be relatively softer.
Risks flagged
- With INR 1,000 crore annual CapEx and new greenfield investments, EBITDA margins may face pressure for another 2 years until capacities are fully utilized and return ratios improve to 25%.
- A new $40 injectable for HIV prevention (PrEP) launching in 2027 may impact ARV demand in medium term; currently ARVs are for treatment not prevention.
- Investor questioned competitive positioning noting Laurus is not getting ROI as quickly as other CDMO players; management attributed this to longer validation cycles (18-24 months) and early-stage capacity building.
- Complex synthesis CDMO molecules require longer working capital cycles; management deflected specific quantification of working capital impact.
Key quotes
- Our growth is increasingly benefiting from our leadership position in antiretroviral ARVs as well as CDMO expansion. At the same time, we're investing in enabling capabilities and capacities to meet growing customer demand.
- We have delivered more commercial molecules in CDMO during the current quarter, so margin profile was better. Gross margins improved because of that.
- The building qualification validation is also taking a very long time. It is not that we can right now, if we start the construction of a manufacturing block, by the time we build, qualify, and do validation, it is anywhere taking between 18-24 months.
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