Laurus Labs soars 8% in 2 days, nears record high; analysts see more upside

Laurus Labs share price today

 

Shares of Laurus Labs extended their upmove, gaining nearly 3 per cent to hit ₹1,103.35 on the BSE in Thursday's intraday trade. In the past two trading days, the stock price of the pharmaceutical company has rallied 8 per cent. It is quoting close to its all-time high level of ₹1,140.90 touched on January 7, 2026.

 

In the past six months, Laurus Labs share has outperformed the market by surging 26 per cent as compared to 2 per cent rise in the BSE Sensex. In the past one year, the stock has zoomed 102 per cent as against 10.5 per cent rally in the benchmark index.

 

Why is Laurus Labs share outperforming the market?

 

Laurus Labs delivered a strong operational and financial performance in the December quarter of the current financial year (Q3FY26). Revenue for the December 2025 quarter grew 26 per cent to ₹1,778 crore, while gross margins expanded and maintained around 60 per cent sequentially. 

 

Ebitda margins, meanwhile, expanded little over 27 per cent. The management said the company achieved these numbers through strong performance across its generic business and also clinical and commercial supplies of Contract Development and Manufacturing Organization (CDMO) programmes to the company's market.

 

Despite apparent slowdown in the CDMO business, the margin performance was strong on account of strong growth in generics driven by Higher ARV volumes and strong offtake in select molecules within developed markets. The management expects better Q4 and a decent overall growth in FY27. 

 

Analysts at ICICI Securities expect CDMO contribution to go up from 16 per cent to 32 per cent by FY28E. Out of ₹3,900 crore of capex that the company has incurred during FY22-26, almost 75 per cent have been earmarked towards API / CDMO. The company is now getting the benefit of the same as the CDMO quarterly run rate has gone up from ₹220-250 crore to ₹450-500 crore in two years.

 

"The Besides CDMO, Laurus is also investing in new edge-technologies such as Cell and Gene therapies. The Generics business (both APIs and formulations) is also expected to do better basis capacity expansion and traction from commercial ARVs besides CMO expansion from European customers," ICICI Securities said. 

 

The management has increased the GPM guidance to 60 per cent. Overall, with incremental capacity utilisation and order execution in CDMO the brokerage firm expects strong momentum to persist albeit with quarterly gyrations.

 

Analysts see more upside in Laurus Labs stock

 

Laurus Labs is showing renewed bullish momentum after reclaiming the ₹1,050 resistance zone with a strong bullish candle supported by rising volumes, indicating fresh accumulation, Kunal Kamble, technical analyst at Bonanza Portfolio said.

 

The stock is trading above its short- and medium-term EMAs, while the 200 EMA remains positively sloped, confirming alignment with the broader uptrend. Price has formed a higher low near ₹980 and is now attempting a breakout toward the recent swing high around ₹1,100. The RSI has moved above 60, reflecting improving momentum without being overbought, analyst said. Kunal Kamble has recommend ‘buy’ on Laurus with a target price of ₹1,227 and a stop loss at ₹998.

 

Meanwhile, those at Motilal Oswal Financial Services think Laurus delivered stronger execution relative to peers, with 30 per cent year-on-year (Y-o-Y) growth and 26 per cent Ebitda margin in 9MFY26, supported by a scale-up in the CDMO and formulation segments.

 

The company's superior growth trajectory reflects prior capacity creation and elevated CDMO capex (₹3,900 crore FY22–26; 78 per cent toward CDMO/API), enabling the faster conversion of pipeline opportunities compared to peers.

 

"With a significant capex underway and scaled capabilities the company appears well-positioned to sustain CDMO growth, benefit from the commercial supply ramp-up, and maintain leadership through the next phase of the CDMO cycle," the brokerage firm said with a 'Buy' rating on Laurus Labs and a share price target of ₹1,280 per share.

 

 

===============================================

 

Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.