Laurus Labs Ltd reported an exceptional performance in the second quarter of fiscal year 2026 on October 23, 2025, posting significant growth across key financial parameters. The company’s consolidated revenue increased by 35% year-on-year to ₹1,653 crore, while net profit jumped 875% to ₹195 crore, reflecting a strong rebound in business momentum and operational efficiency.
For the half-year ended September 30, 2025, consolidated revenue reached ₹3,223 crore, up 33% compared to the same period last year. This growth was driven by robust performance across its key segments — particularly the CDMO (Contract Development and Manufacturing Organisation) and generics businesses.
The company also declared an interim dividend of ₹0.80 per share for its shareholders.
Strong Margin Expansion and Profitability
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for Q2 FY26 rose by 126% to ₹403 crore, while EBITDA margins expanded over 1,000 basis points to 24.4%. The company’s gross margin also improved by more than 4.5 percentage points to 59.6%, reflecting a favourable business mix and enhanced operational efficiency.
For the half-year period, EBITDA stood at ₹818 crore, registering a 132% year-on-year growth, with margins at 25.4%. Laurus Labs’ management attributed the improvement to better asset utilisation, a stronger product mix, and ongoing cost optimisation measures.
Divisional Revenue Performance
The company’s CDMO division delivered outstanding growth, with Q2 revenues rising 53% year-on-year to ₹518 crore. Within the CDMO segment, small molecule revenues increased 58% to ₹471 crore, supported by strong demand and execution across projects.
The generics business also performed well, recording a 28% year-on-year increase to ₹1,135 crore during the quarter. Meanwhile, the API business grew 11%, and the Finished Dosage Form (FDF) segment rose by 58%, highlighting Laurus Labs’ diversified growth momentum.
For the half-year period, CDMO revenues stood at ₹1,040 crore, up 74%, while the generics business contributed ₹2,183 crore, a 20% increase compared to the previous year.
Investments and Strategic Initiatives
Laurus Labs continued to reinvest in innovation and capacity building. During the half-year, the company allocated ₹137 crore to research and development — approximately 4.3% of revenues — and maintained CAPEX spending at 15% of sales.
In a strategic move to strengthen its biotechnology capabilities, the company invested US$2 million in Aarvik Therapeutics, gaining access to advanced Antibody-Drug Conjugate (ADC) technology for future therapeutic developments.
Market Outlook
Laurus Labs’ consistent improvement in profitability and margins underscores its successful transition toward higher-value businesses. The company has reported EBITDA margins above 20% for four consecutive quarters, signalling operational stability and sustainable earnings growth.
With increasing contributions from its CDMO segment, continued R&D investments, and expanding global partnerships, Laurus Labs is well-positioned to build on this growth trajectory in the coming quarters.
Also Read:
- Dr Reddy’s Laboratories Q2 FY26 Results: Profit Up 14%, Revenue Climbs Nearly 10%
- Colgate-Palmolive India Q2 FY26 Results: Profit Down 17% YoY, Revenue Drops 6%; ₹24 Interim Dividend Announced
- Hindustan Unilever Q2 FY26 Results: Net Profit Rises 4% YoY, Revenue Up 2%
Conclusion
Laurus Labs’ Q2 FY26 results reflect a strong turnaround and strategic progress across key segments. The impressive 875% surge in net profit and 35% revenue growth highlight the company’s robust execution, efficient cost management, and focus on high-margin opportunities. As Laurus Labs advances its innovation-driven growth strategy, it remains a key player in India’s evolving pharmaceutical sector and CDMO landscape.
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