Laurus Labs nears record high after 4 years, zooms 84% from 52-week low

Laurus Labs management sees a clear pathway for further margin expansion as the company continue delivering on mid-late phase projects, ramping up new assets, and better asset utilisation.

Laurus Labs share price

 

Shares of Laurus Labs hit a multi-year high of ₹717.40, gaining 2 per cent on the BSE in Monday’s intra-day trade on expectations of healthy earnings. Thus far in the month of June 2025, the stock has outperformed the market by surging 18 per cent, as compared to 3 per cent rise in the BSE Sensex.

 

The stock price of the pharmaceutical company was trading close to its record high level of ₹723.55, which it touched on August 12, 2021. It has zoomed 83 per cent from its 52-week low of ₹390.30 on August 8, 2024.  CATCH STOCK MARKET UPDATES TODAY LIVE 

 

Laurus Labs FY25 performance

 

After 3 years of muted earnings, Laurus Labs reported a healthy performance in FY25 with the profit more-than-doubling at ₹358 crore. Improving asset utilization driven by project execution in the Contract Development and Manufacturing (CDMO) Operations segment and new launches in the FDF (Finished Dosage Forms), Laurus is expected to report a steady growth in future.

 

In FY25, Laurus reported revenues of ₹5,554 crore (+10 per cent YoY growth), reflecting robust demand for CDMO offerings despite external challenges. Gross margins were maintained at a healthy 55.4 per cent, supported by a favourable product mix. EBITDA of ₹1,115 crore (+40 per cent YoY growth) resulted in a margin of 20.1 per cent, in line with outlook, and the management see a clear pathway for further margin expansion as the company continue delivering on mid-late phase projects, ramping up new assets, and better asset utilisation.

 

Meanwhile, throughout FY25, the company successfully completed over 160 quality audits by regulatory agencies and customers- an increase of 20 per cent over the previous year - with no critical findings. The company also received Establishment Inspection Reports for its Unit 4 API facility in Visakhapatnam.

 

Laurus is well-positioned to continue evolving as a diversified CDMO and CMO leader, underpinned by a strong pipeline, enabling technologies, and commercial excellence. The management anticipates operating margins will improve further, supported by continued enhancements in utilization rates and product mix optimisation.  ALSO READ | Nuvama sees mixed June auto sales; two-wheelers, tractors to outperform

Laurus Labs - Outlook for FY26 and beyond

 

Looking ahead, Laurus in its FY25 annual report said the company is committed to scaling its global CDMO footprint through continuous capacity expansion and technology investments while advancing into high-value specialty service capabilities such as biologics and gene therapy.

 

Additionally, the company is leveraging automation and AI-driven process optimisation to enhance efficiency and compliance. With a strong foundation and a robust pipeline, the management said the company is well-positioned to capture growth opportunities and reinforce its position as a trusted global CDMO partner.

 

India’s CDMO market is expected to double by 2029, growing from $22.51 billion in 2024 to $44.63 billion at a compounded annual growth rate (CAGR) of 14.67 per cent. This growth will be driven by India’s expanding role in small molecule manufacturing and the increasing demand for biologics.

 

Looking ahead, while pricing pressures persist across generic markets, the broader outlook for the company’s Generic API division remains positive. This is supported by planned capacity expansions to address current constraints, particularly in the ARV API space. A strong order book is expected to translate into sales, contributing to revenue growth, Laurus said.

 

Meanwhile, Laurus anticipates growth in its Generic FDF division, driven by continued commercial execution on the CMO partnerships supporting portfolio diversification, ramp up in the non-ARV portfolio especially approvals within North America market. Continued focus on cost efficiency and operational excellence will help navigate pricing pressures, the company said.  ALSO READ | Can Nifty hit 30,000 in H2 2025? Buy or sell FMCG, Auto stocks? Chart check

About Laurus Labs

 

Laurus Labs is a research-driven, integrated pharmaceutical company with a robust presence across four core business portfolios: Contract Development and Manufacturing (CDMO), Generics Finished Dosage Forms (FDF), Active Pharmaceutical Ingredients (APIs), and Biotechnology.

 

CDMO division provides drug development including human health and manufacturing services to global pharma, crop science, animal health, speciality ingredients and biotech firms, with facilities in Hyderabad and Visakhapatnam. Key markets include the US, EU and Japan.

 

With the largest Hi-Potent API capabilities in India, Laurus is world’s leading third-party API supplier for antiretrovirals. The company’s portfolio spans ARV, oncology, steroids, hormones and cardiovascular APIs, supplied to the top global generic pharmaceutical companies.