Laurus Labs Ltd. Q2 FY27 results

The quarter, explainedfrom the filing and the statements

Laurus Labs Ltd. reported revenue of ₹2,206 cr for July to September 2026, +33.4% on the year and +8.9% on the quarter. That is faster than this quarter has grown in recent years (+17.5% on average), so the year-on-year number is not just the season. It is the highest quarterly revenue in the last 12 quarters on record. Over the last four quarters revenue comes to ₹7,823 cr, +23.0% on the four before.

Operating profit (EBITDA) was ₹750 cr, a margin of 34.0%, +962 bps on the year and +251 bps on the quarter. It is the widest margin of the last 8 quarters (range 20.1% to 34.0%). Operating costs grew +16.5% against revenue growth of +33.4%, so more of each rupee of sales reached operating profit.

Net profit was ₹436 cr, +124.3% on the year and +20.5% on the quarter, with earnings per share of ₹8.17. Profit before other income, one-offs and tax grew faster, at +138.4%; other income, one-offs or tax held the headline back. The tax rate of 26% is in line with its recent average. Profit over the last four quarters totals ₹1,332 cr, +95.2% on the four before.

Of the 13 companies in Pharmaceuticals that have reported Q2 FY27 so far, Laurus Labs Ltd. ranks 1st on revenue growth; the sector median is +11.8%. Its margin moved +962 bps on the year against a sector median of −60 bps.

Pharma quarters swing with US generic launches and price erosion, while India formulations grow more steadily. Currency gains and other income can be material, so headline profit needs a check against operating profit.

On earnings per share of ₹24.81 over the last four quarters, the stock at ₹2,454.00 trades at 98.9 times trailing earnings.

Questions to ask: none this quartereach one with its numbers and source

No check fired. That is a statement about the checks below, not a verdict on the company.

Also worth knowing

Could not run on this quarter: Exceptional items that recur, IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.

Where the profit change came fromSep '25 → Sep '26

Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.

The half year: balance sheet and cashfiled with Q2

Operating cash flow was 1.01× profit. Receivables at 97 days of sales (−19 days against the last year end). Inventory at 115 days of sales (−11 days).

From the filingauditor, IPO money, related parties, promoters

Pharma vitalsthe numbers this business is run on

What the company says drove itfrom the presentation and press release

• Revenue ₹2,206 crore (+33% YoY) up 33%: Continued strength in CDMO execution and ongoing momentum in affordable medicine portfoliotranscript p.6, p.13
• Gross Margin 63.0% (+3.1% YoY) up 3.1 percentage points: Better product mix, division mix, and improved operational efficienciestranscript p.7, p.13
• EBITDA Margin 34.5% (+2.7% QoQ) up 2.7 percentage points: Improved operational leverage and higher capacity efficiency from growing commercial suppliestranscript p.7, p.13, p.32
• CDMO Small Molecules Revenue ₹875 crore (+86% YoY) up 86%: Successful delivery of critical late stage programs as well as commercial API supplies to global partnerstranscript p.7
• Laurus Bio Revenue ₹29 crore (-38% YoY) down 38%: Campaign phasing and timing of customer project scale upstranscript p.9, p.64
• Affordable Medicines Revenue ₹1,302 crore (+15% YoY) up 15%: Order book expansion across established portfolios and stable pricing in ARV and developed market portfoliostranscript p.11
• Net Debt to EBITDA 1.02x (vs 1.28x prev quarter) down 0.26x: Strong internal cash flow generationtranscript p.13

From the investor presentationthe operating tables, as printed

Segment Revenue Breakdown (Q2 FY27) (₹ crore)

Source: transcript p.7, p.9, p.53

H1 FY27 Performance Summary (₹ crore)

Source: transcript p.7, p.9, p.11, p.13

What management saidquoted, with source

• Total revenues were 2206 crores reflecting a continued strength of our CDMO segment growing contribution from commercial based supplies and ongoing momentum in affordable medicine portfolio.concall, transcript p.6
• EBITDA margins further expanded over previous quarters by 2.7 percentage points to 34.5%.concall, transcript p.7
• Our current reactor volume for solid phase peptide synthesis is over 16,000 L and we have taken up a significant further expansions.concall, transcript p.4
• We are comfortable in maintaining over 60% gross margin and over 30% EBITDA I think that's we still stick to our guidance.concall, transcript p.33
• We have commissioned our peptide manufacturing facility and our investment towards other multiple large scale API opportunities continues to take place.concall, transcript p.8

Guidance given this quarter

Held for next quarter's said-then-did check.

From the call

• Quarterly revenue reached ₹2,206 crore representing 33% YoY growth, driven by CDMO execution.transcript p.6
• EBITDA increased 78% YoY to ₹762 crore with EBITDA margin at 34.5%.transcript p.7
• CDMO Small Molecules revenue grew 86% YoY to ₹875 crore on commercial supplies.transcript p.7
• Solid phase peptide synthesis (SPPS) capacity scaled over 16,000 L volume.transcript p.4
• Net debt to EBITDA declined to 1.02x from 1.28x in the prior quarter.transcript p.13
• Acquired 60% stake in Galinas Sciences (Canada) for USD 3.75 million.transcript p.5

Where analysts pushed

Plans, launches and capacityfrom the call and presentation

• Acquired 60% majority stake in Galinas Sciences (Canada) specializing in oligonucleotides and magnetic nanoparticles purification: 60% stake, USD 3.75 million investment (Q2 FY2027), completedtranscript p.5
• Acquired majority stake in SA Regimes for insourcing solid support resins for peptide synthesis (Q2 FY2027), completedtranscript p.6
• Commissioned commercial scale solid phase peptide synthesis (SPPS) manufacturing block: over 16,000 L volume (Q2 FY2027), completedtranscript p.4
• Laurus Bio4 commercial fermentation facility expansion: 500,000 L capacity (Q4 FY2027), under waytranscript p.9, p.29
• Krka Joint Venture formulation facility phase 1 production blocks (mid 2027), under waytranscript p.11, p.47

The readsynthesis of the filing and the call, no new facts

Laurus Labs reported Q2 FY27 revenue of ₹2,206 crore, up 33% YoY, and PAT of ₹436 crore, up 124% YoY. Growth was driven by the CDMO division, which increased 86% YoY to ₹875 crore, alongside expansion in finished dosage formulations. Operating leverage moved gross margin to 63% and EBITDA margin to 34.5%, while operational cash flows reduced net debt to EBITDA ratio to 1.02x. The results reflect ongoing commercialization of late-stage programs and capacity additions in peptides. Unresolved areas include quarterly revenue fluctuations in Laurus Bio due to campaign phasing and the ramp-up schedule for newly commissioned peptide manufacturing blocks.

What matters most. Commercial execution in high-margin CDMO small molecules and peptides along with disciplined capex deployment.

What would change it. A sharp drop in CDMO commercial orders or delays in commissioning the Bio4 fermentation plant.

Open questions

• When will the newly commissioned 16,000 L peptide capacity reach peak asset turnover?Q3 FY27 earnings commentary and investor presentation.
• What is the expected revenue contribution from the Galinas Sciences acquisition in FY28?Annual Report FY27 or Q4 FY27 concall.
• Will Laurus Bio return to positive YoY growth in Q3 FY27 post campaign phasing?Q3 FY27 results release.

Every quartersame rules, every quarter