Laurus Labs shares surge 4% as Q1FY27 profit jumps 126% on robust CDMO growth
The company's net profit more than doubled, driven by strong performance in the CDMO business.
1Strong Financial Performance
Laurus Labs reported a 126% YoY increase in net profit to Rs 368 crore for the June 2026 quarter. Revenue grew by 29% to Rs 2,026 crore, supported by rising commercial projects in the CDMO segment and steady demand for affordable medicines.
2Growth in CDMO Segment
The company's CDMO (Contract Development and Manufacturing Organisation) segment stood out with increased commercial projects. This segment contributed significantly to total revenue, while operational efficiency and better business mix boosted profitability.
3Margin Expansion
Laurus Labs expanded its EBITDA margin to 31.8%, marking a 7 percentage point increase YoY. Gross margin also improved to 62.7%, reflecting a stronger product mix and successful cost management strategies.
4Investment and Expansion Plans
The company continues to invest in expanding manufacturing capabilities and developing new technology platforms. Planned capex for FY27 and FY28 will focus on areas like small molecules for human and animal health, fermentation, peptides, and gene therapy.
5Institutional Investor Interest
Foreign institutional investors (FIIs) increased their stake in Laurus Labs from 25.82% to 28% during the June 2026 quarter. This rise reflects growing confidence in the company's future potential and supports stock performance.
6Technical Indicators and Market Performance
Laurus Labs shares gained 45% in the last three months and nearly 92% over the past year. The stock is trading above all key moving averages, with an RSI of 66.3 indicating strong momentum, which is a positive signal for investors.