Laurus Labs reports a boost in Q1 FY26 net profit to ₹163 crores
Laurus Labs Announces Major Investments in Pharmaceutical Expansion
Laurus Labs, a leading player in the Contract Development and Manufacturing Organisation (CDMO), Generics, and Finished Dosage Forms (FDF) sectors, has commenced construction of various facilities as part of its strategic growth plans and long-term business objectives.
The company's Q1 FY 2025-26 financial report reveals a focus on expanding capacity, particularly through significant investment in manufacturing facilities. One such investment is a ₹5,630 crore project in a new plant in Andhra Pradesh, signalling a strategic push to expand manufacturing capacity and capabilities in the pharmaceutical space.
This investment aims to meet the expenditure for setting up a manufacturing facility for new markets, including the Indian market. The progress was due to contributions from the CDMO business and continued advancement of pipeline projects.
Laurus Labs has shown robust revenue growth, with a 31% increase from the year-ago period, reaching ₹1,570 crore in the first quarter of the current fiscal year. This growth is primarily fuelled by increasing uptake in CDMO deliveries, indicating a focus on becoming a key player as a contract partner in pharmaceutical development and manufacturing.
The company aims to maintain and improve margin expansion, as evidenced by Q1’s EBITDA margin of 24.8%, up significantly year-over-year, supported by operating efficiencies and an improved product mix.
Satyanarayana Chava, Founder & Chief Executive Officer of Laurus Labs, stated that the company made healthy progress to start the year. The investment is part of Laurus Labs' efforts to drive near and long-term growth and returns for shareholders.
In addition to the domestic investments, Laurus Labs' co-venturer, KRKA d.d., Novo mesto, Slovenia, will also invest €5 million in KRKA. The Board of Directors of Laurus Labs approved an investment of €5 million in KRKA Pharma Pvt Ltd.
The investment was announced on July 25, 2025. The existing shareholding ratio between KRKA d.d., Novo mesto, and Laurus Labs will remain 51:49 post-investment.
In the corresponding quarter of the previous financial year (2024-2025), Laurus Lab's net profit was ₹13 crore. The net profit for the first quarter of the current fiscal year (2025-2026) is ₹163 crore.
The investment is intended for civil works for a manufacturing facility for finished products. The progress was due to contributions from the CDMO business and continued advancement of pipeline projects.
In summary, Laurus Labs is strategically focused on aggressive capacity expansion through multi-thousand crore investments in new plants, driving long-term revenue and profit growth mainly via expanding CDMO services, while leveraging improved operational efficiencies reflected in growing margins and profits.
- Laurus Labs has announced substantial investments in technology and infrastructure to boost its pharmaceutical expansion.
- The company plans to invest in new markets, such as the Indian market, through the establishment of a manufacturing facility.
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- By focusing on expanding its CDMO business and manufacturing capabilities, Laurus Labs is aiming to position itself as a key player in the global pharmaceutical industry, driving growth in business and returns for shareholders.
