Laurus Labs shares drop 3% despite analysts' bullish outlook; details here

Shares of Laurus Labs Ltd. fell over 3 per cent on Friday, even as analysts remain bullish on the company after its September quarter bottom-line grew multifold. 

 

The Laurus Labs's stock fell as much as 3.4 per cent during the day to ₹940.7 per share, the biggest intraday fall since September 26 this year. The stock pared losses to trade 2.9 per cent lower at ₹906 apiece, compared to a 0.03 per cent decline in Nifty 50 as of 10:05 AM. 

 

Shares of the company snapped a four-day winning streak. The counter has risen 50 per cent this year, compared to a 9.5 per cent advance in the benchmark Nifty 50. Laurus Labs has a total market capitalisation of ₹48,908.14 crore. 

 

Laurus Labs Q2 results 

Laurus Labs reported a strong Q2 FY26 performance, with consolidated net profit soaring multifold to ₹194.97 crore, compared with ₹19.78 crore in Q2 FY25. Revenue from operations rose 35.1 per cent to ₹1,653.47 crore.  ALSO READ | South India Paper Mills hits 20% upper circuit on posting Q2 results 

The company’s CDMO segment delivered strong growth, with revenue jumping 53 per cent to ₹518 crore from ₹339 crore a year ago. Ebitda surged 136 per cent to ₹429 crore, up from ₹182 crore in Q2 FY25, while Ebitda margin expanded to 26 per cent, compared with 14.9 per cent in the same quarter last year.

Analysts on Laurus Labs Q2 earnings

Motilal Oswal reported that Laurus Labs delivered another better-than-expected quarter, driven by improving traction in the human health CDMO segment and strategic investments in manufacturing assets for animal health and crop science CDMO.

 

The brokerage has raised earnings estimates by 11 per cent, 10 per cent, and 6 per cent for FY26, FY27, and FY28, respectively, factoring in stronger antiretroviral (ARV) prospects, steady growth in CDMO projects, and an expanded generics business supported by CMO opportunities. Motilal Oswal expects a 50 per cent earnings CAGR over FY25-28 and assigned a target price of ₹1,110 and reiterating a 'Buy' rating.

 

Choice Broking stated that Laurus Labs is evolving from a traditional generics player to a CDMO (Synthesis)–led model, with the segment expected to contribute over 30 per cent of revenues in the medium term.  ALSO READ | Epack Prefab Technologies shares soar 8% to hit fresh high; here's why 

The brokerage expects margins to expand to the 23-25 per cent range, driven by the shift in product mix, the higher-margin profile of CDMO, and operating leverage from the ramp-up of new manufacturing assets.

 

Antique Stock Broking adjusted its FY26 estimates to account for higher ARV revenue and gross margin, while largely maintaining FY27 and FY28 revenue and Ebitda projections. The brokerage continues with a 'Hold' rating and a revised target price of ₹810, up from ₹700 earlier.