Laurus joins ₹1 trillion market cap club as stock zooms 120% in 1 year

In the past month, Laurus Labs outperformed the market by surging 22 per cent, as compared to 2.1 per cent rise in the Nifty Midcap 50 index.

Laurus Labs share price movement

 

Laurus Labs share price hit a new high of ₹1,854.90, up 1 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade. 

 

In the past month, the stock price of the pharmaceutical company outperformed the market by surging 22 per cent, compared to a 2.1 per cent rise in the Nifty Midcap 50 index. Thus far in the calendar year 2026, the stock rallied 66 per cent, against 5.2 per cent gain in the Midcap 50 index. Further, in the past year, it zoomed 120 per cent, data shows.

 

Market capitalisation touches ₹1 trillion

 

 

Laurus Lab joined an elite club of stocks that command a market capitalisation of ₹1 trillion or more. The market capitalisation (market-cap) of the pharmaceutical company hit ₹1 trillion (₹100,210 crore) on Thursday, the exchange data shows. Currently, Laurus Labs stands at the ninth position in the overall market capitalisation within the pharmaceutical sector. 

Sun Pharmaceutical Industries leads the market cap list in pharma companies with a ₹4.7 trillion market cap. Divis Laboratories at number two position commands a ₹2.23 trillion market-cap, followed by Torrent Pharmaceuticals (₹1.89 trillion), Cipla (₹1.19 trillion), Zydus Lifesciences (₹1.11 trillion), Lupin (₹1.10 trillion) and Mankind Pharma (₹1.01 trillion), the data shows.

 

What’s driving Laurus Labs stock price?

 

In the first quarter (April to June 2026) of the financial year 2026-27 (Q1FY27), Laurus, the Contract Development and Manufacturing Organization (CDMO) company, maintained its strong growth momentum, delivering highest quarterly revenue, earnings before interest, taxes, depreciation, and amortization (EBITDA) and profits during the first quarter. 

 

The company's revenue stood at ₹2,026 crore, showing a 29 per cent year-on-year (YoY) growth. This was mainly driven by growing contribution of commercial supplies in CDMO segment and continued strength in affordable medicine portfolio.

 

Gross margins were also very healthy, maintained around 62.7 per cent and EBITDA margins further expanded by 7 percentage points over the previous quarter to 31.8 per cent. The company said its product mix within the business divisions' operating leverage continued to perform well, supporting healthy margins overall.

 

The management said the company signed a development and commercial agreement with Aarvik Therapeutics for 2 Antibody-drug conjugates (ADC) molecules for India markets. Those are in the clinical stage. The company onboarded a big pharma client with significant opportunities ahead, the management said in the Q1 earnings conference call.

 

Analysts at Motilal Oswal Financial Services value Laurus at 65x 12 month forward earnings to arrive at a target price of ₹1,980. Laurus continues to invest in manufacturing assets backed by contracts with leading pharma customers. It is also expanding its capabilities in differentiated technologies like biologics as well as ADCs. The brokerage firm expects a 24 per cent earnings compound annual growth rate (CAGR) over FY26-28, while reiterating a 'BUY' rating on the stock.

 

Given the strong prospects for the CDMO business, Laurus guided for FY27 capex of ₹2,000 crore. The company remains on track to build a commercial-scale peptide block in Vizag. The order book was healthy, with sales run-rate remaining steady in the ARV segment during the quarter, the brokerage firm said.

 

Analysts raised the earnings estimate by 21 per cent/16 per cent for FY27/FY28, factoring in: a) a robust outlook for the CDMO segment, backed by multiple contracts across human health, animal health, and crop science, b) new launches in the FDF segment, and c) improved operating leverage.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.