Laurus Labs rallies 6%, hits record high post Q4 results; brokerages upbeat

Laurus Labs 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, believe analysts.

Laurus Labs share price

Shares of Laurus Labs hit a record high of ₹1,162.70, as they rallied 6 per cent on the BSE in Monday’s intra-day trade after the company reported a healthy operational performance in the March 2026 quarter (Q4FY26). 

The stock price of the pharmaceutical company surpassed its previous high of ₹1,144.50 touched on April 20, 2026. 

At 10:14 AM; Laurus Labs stock was quoting 5.8 per cent higher at ₹1,141.05, as compared to 0.80 per cent rise in the BSE Sensex. The counter has seen huge trading volumes with a combined 2.91 million equity shares changing hands on the NSE and BSE.  FOLLOW STOCK MARKET UPDATES TODAY LIVE

 

Laurus Q4FY26 results

Laurus sustained strong operating performance for the Q4FY26. The company achieved revenues of ₹1,812 crore, representing 5 per cent growth and EBITDA of ₹523 crore, representing 10 per cent growth over the previous year Q4FY25. The EBITDA margins were strong at 28.9 per cent, supported by continuing operating leverage. Profit after tax stood ₹281.9 crore, driven by a favourable product mix and strong operational performance. 

Overall, Laurus reported strong financial year 2025-2026 (FY26) performance, reflecting continued robust demand for integrated offering across Contract Development and Manufacturing Organization (CDMO) and Affordable Medicines business.  

The company achieved 23 per cent year-on-year (YoY) growth in revenue at ₹6,813 crore. EBITDA was up 64 per cent YoY at ₹1,826 crore, resulting in 26.8 per cent EBITDA margins marking significant >6 per cent points improvement over the previous year. Gross margins improved by over 5 per cent points to 60.4 per cent due to favorable CDMO mix, the management said.  READ | Jindal Steel shares rise 4% on Q4 results; analysts peg up to 11% upside

Brokerages upbeat on Laurus

The CDMO growth was back on track after quarterly hiatus driven by strong recurring business from existing relationships and growth projects ramp up and saw 38 per cent growth on yearly basis. Out of ₹4,300 core of capex that the company incurred during FY22-26, almost 79 per cent was 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 CDMO contribution has also gone up from 16 per cent to 28 per cent which has led to significant margin expansion. Besides CDMO, Laurus is also investing in new edge-technologies such as Cell and Gene therapies. ICICI Securities in note a said that they continue to monitor progress on these driving factors which in a way are expected to change the business mix in favour of these segments in lieu of anti-retroviral (ARV). 

Laurus’ 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, according to analysts at Motilal Oswal Financial Services. 

With a significant capex underway (₹3,900 crore over FY22-26; 78 per cent towards CDMO/API) 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 in February 2026 report. Analysts value Laurus at 62x 12M forward earnings to arrive at a target price of ₹1,280. Reiterate BUY rating on the stock.  =================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.