Laurus Labs Reports Record Quarterly Performance Driven by Strong CDMO Growth and Margin Expansion

By:- Thomas V Abraham, Research Analyst, Mirae Asset Sharekhan. 

 

Laurus Labs has posted a record quarter. Revenue grew 33% YoY to Rs 2,206 crore, and small-molecule CDMO surged 86%, helped by commercial API supplies and late-stage clinical projects. The richer CDMO mix lifted EBITDA margin by about 960 bps to 33.9%, and net profit more than doubled.

The Galenvs and SI&C Resins acquisitions won’t add much revenue immediately. They do give Laurus entry into oligonucleotides and backward integration in peptide resins, which strengthens its position for GLP-1 and other multi-modality contracts. The near-term watch-points are a heavy Rs 2,000 crore capex year, likely higher debt, while also keeping in mind the peptide revenue that is expected around 2029. Even so, we believe Laurus is among the best placed to win high-value CDMO contracts from global pharma.