Hyderabad, India – Laurus Labs has announced a substantial increase in its investments in new technologies and capacity, particularly within its contract development and manufacturing (CDMO) business, following a robust financial performance in fiscal year 2026. The company reported a significant improvement in margins and profitability, underscoring the success of its strategic shift towards higher-value segments.
For FY26, Laurus Labs saw its net profit surge by 148% to ₹889 crore, while revenue grew 23% year-on-year to ₹6,813 crore. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased by 64% to ₹1,826 crore, with EBITDA margins expanding to 26.8% from 20.1% the previous year. This margin expansion was attributed to operating leverage and a favorable product mix.
CDMO Business Drives Growth and Profitability
The CDMO business emerged as a key driver of this impressive performance, with revenue climbing 36% to ₹2,080 crore during the fiscal year. This segment benefited from successful commercial supplies for new chemical entity (NCE) programs and the ramp-up of late-stage projects. Within CDMO, small molecules revenue alone grew 38% to ₹1,896 crore, while the bio segment recorded a 15% increase to ₹184 crore.
Gross margins for the company improved by over 5 percentage points, reaching 60.4%, a direct reflection of the higher contribution from CDMO operations. Satyanarayana Chava, Founder and CEO of Laurus Labs, stated, “We significantly accelerated our performance in FY26, delivering strong revenue growth and expanded profitability, backed by successful commercial supplies for NCE programs, new launches ramp-up and sustained leadership in Anti-retroviral segment.”
Chava also highlighted the ongoing portfolio transformation, emphasizing investments in new technologies and integrated capabilities designed to lay a solid foundation for future growth.
Future Investments and Generics Performance
Laurus Labs plans to intensify its capital expenditure over FY27 and FY28 to support expansion across various platforms, including small molecules, fermentation, peptides, and gene therapy. This move aims to build capabilities in these higher-value segments, further cementing its position in complex chemistry and emerging technology areas.
V V Ravi Kumar, Executive Director and Chief Financial Officer, affirmed the company’s strong balance sheet, which is well-positioned to support these upcoming CAPEX programs. He noted continued demand across Laurus Labs' integrated offerings.
Beyond CDMO, the generics business, reported under affordable medicines, also contributed to growth, increasing 18% to ₹4,733 crore. This was supported by volume growth in anti-retroviral (ARV) products and expansion into developed markets such as the US and Europe.
For the fourth quarter of FY26, Laurus Labs reported revenue of ₹1,812 crore, a 5% year-on-year increase, with EBITDA rising 10% to ₹523 crore and margins at 28.9%.