Laurus Labs (LAURUSLABS) Q4 25/26 earnings summary

Executive summary

• Achieved record operational and financial performance in FY26, with revenue up 23% to ₹6,813 crore, driven by robust demand in CDMO and Affordable Medicines divisions, and successful execution of strategic transformation initiatives.

• Maintained global leadership in antiretroviral (ARV) therapy, servicing one-third of the global HIV population, while expanding CDMO, non-ARV, and biologics businesses.

• EBITDA rose 64% to ₹1,826 crore, with margins improving to 26.8% due to favorable product mix and operational leverage.

• Net profit surged 148% to ₹890.14 crore, and ROCE improved to 17.7% from 9.7% last year.

• Audited consolidated and standalone financial results for FY26 were approved with an unmodified audit opinion; board declared a 2nd interim dividend of ₹1.20 per share.

Financial highlights

• FY26 consolidated revenue reached ₹6,813 crore, up 23% year-over-year; Q4 revenue at ₹1,812 crore, up 5%.

• Gross margin for the year at 60.4%, Q4 at 61.4%; EBITDA margin expanded by 6.7 percentage points to 26.8% for the year, Q4 EBITDA margin at 28.9%.

• Consolidated net profit for FY26 was ₹890.14 crore, up from ₹358.34 crore in FY25; Q4 FY26 net profit was ₹282.09 crore.

• Operating cash flow grew 170% to ₹1,624 crore; net debt/EBITDA reduced to 1.25 from 2.3 last year.

• CapEx for FY26 was ₹1,070 crore, representing 16% of sales.

Outlook and guidance

• Confident in maintaining or improving current EBITDA margins in FY27, with ongoing investments in large-scale manufacturing, gene therapy, and ADC platforms.

• CDMO and affordable medicines divisions expected to continue strong growth, with robust order books and capacity utilization.

• CapEx guidance increased to ₹3,000 crore over the next two years; new 532-acre Vizag site to enhance global scale, with $600mn capex planned over 8 years starting FY27.

• ARV revenues expected to remain stable in absolute terms, but as a percentage of total sales will decline as other segments grow.

• Composite Scheme of Arrangement for demerger and amalgamation involving Laurus Synthesis Private Limited is pending regulatory approval.