CDMO Revenue (Small Molecule)
₹1,896 Cr
+38% YoY
Driven by late-stage pipeline programs and commercial NCE supplies.
LAURUSLABS
Other
13 May 2026
Laurus Labs Limited — Q4 FY26
Laurus Labs delivered a strong FY26 with revenue of ₹6,813 crore (+23% YoY) and EBITDA margin expansion of 670 bps to 26.8%, driven by a 38% surge in small molecule CDMO (₹1,896 crore) and 18% growth in affordable medicines (₹4,733 crore).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Laurus Labs delivered a strong FY26 with revenue of ₹6,813 crore (+23% YoY) and EBITDA margin expansion of 670 bps to 26.8%, driven by a 38% surge in small molecule CDMO (₹1,896 crore) and 18% growth in affordable medicines (₹4,733 crore). PAT jumped 148% to ₹889 crore as gross margins improved to 60.4% on better mix and raw material softening. Management guided for continued CDMO growth, with capex of ₹3,000 crore over two years for capacity expansion (Unit 7, peptide, fermentation). However, geopolitical disruptions could pressure raw material availability and logistics, posing near-term headwinds for the generics business.
Key Numbers
ARV Revenue Share
41%
-26pp YoY
Declined from 67% six years ago as CDMO share rose to over 30%.
Formulation Capacity
12 Billion Units
+20% YoY
Capacity expanded in FY26; new CMO contract ramping up.
Net Debt/EBITDA
1.25x
-1.05x YoY
Improved from 2.3x last year on strong internal cash flows.
Management Guidance
Capex of ₹3,000 crore over next two years
Increased from earlier ₹1,000 crore annually; 90% towards mid/large-scale manufacturing.
Management guidance capexCDMO to reach 50% of total sales by 2030
Management reiterated target; ARV sales to remain constant in absolute terms.
Management guidance growthEBITDA margin to sustain or improve in FY27
Confident in maintaining stable margins despite solvent price pressures.
Management guidance marginsUnit 7 first production block ready by March 2027
Greenfield project; additional blocks in FY28 with combined 2,000 m³ reactor volume.
Management guidance expansionKey Risks
Geopolitical disruptions impacting raw material and logistics
Management noted increasing geopolitical tensions may pressure OTF performance in generics.
medium · management_commentarySolvent price increases affecting margins
Q4 FY26 saw some impact; management expects to weather via mix and utilization.
low · analyst_questionConcentration risk in CDMO commercial products
Analyst raised concern; management stated three commercial APIs have long patent life and clear forecasts, but no granular disclosure.
medium · analyst_questionUncertainty in OLED and crop science revenue timing
Management deferred specifics on OLED collaboration and crop science ramp-up, indicating multi-quarter uncertainty.
low · analyst_questionNotable Quotes
We are a strategic partner for many big pharma right now. So we have a flow of RFP commercial early stage mid-stage late stage commercial.
Most of the capex what we're doing is growth capex. We are not putting capex and hoping customer will come and give projects.
We are very confident on maintaining or improving stable margin in FY27.
Frequently Asked Questions
What was Laurus Labs's revenue in Q4 FY26?
Laurus Labs reported revenue of ₹1,812 Cr in Q4 FY26, representing a +23% change compared to the same quarter last year.
What guidance did Laurus Labs management give for FY27?
Capex of ₹3,000 crore over next two years: Increased from earlier ₹1,000 crore annually; 90% towards mid/large-scale manufacturing. CDMO to reach 50% of total sales by 2030: Management reiterated target; ARV sales to remain constant in absolute terms. EBITDA margin to sustain or improve in FY27: Confident in maintaining stable margins despite solvent price pressures. Unit 7 first production block ready by March 2027: Greenfield project; additional blocks in FY28 with combined 2,000 m³ reactor volume.
What are the key risks for Laurus Labs in FY27?
Key risks include Geopolitical disruptions impacting raw material and logistics — Management noted increasing geopolitical tensions may pressure OTF performance in generics.; Solvent price increases affecting margins — Q4 FY26 saw some impact; management expects to weather via mix and utilization.; Concentration risk in CDMO commercial products — Analyst raised concern; management stated three commercial APIs have long patent life and clear forecasts, but no granular disclosure.; Uncertainty in OLED and crop science revenue timing — Management deferred specifics on OLED collaboration and crop science ramp-up, indicating multi-quarter uncertainty..
Did Laurus Labs meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Laurus Labs Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.