Laurus Labs soars 6% in 2 days, market cap tops ₹ 50,000 crore; here's why

Laurus Labs share price today

 

Laurus Labs share price hit a new high of ₹944, rising 2.3 per cent on the BSE in Friday's intraday trade, supported by heavy volumes. The stock of the pharmaceutical company was quoting higher for the second straight trading day, surging 6 per cent during the period. With tis, the stock surpassed its previous high of ₹922.55 which it touched on July 30, 2025.

 

Thus far in calendar year 2025, Laurus Labs shares have outperformed the market by zooming 53 per cent. In comparison, the BSE Sensex was up 5 per cent, while BSE Healthcare index was down 0.56 per cent, during the same period.

 

 

A sharp run-up in the stock price of Laurus Labs has lifted the market capitalisation of the pharma company to ₹50,000-crore mark.

 

At 11:29 AM, Laurus Labs' stock was quoting 2 per cent higher at ₹943.15 on the BSE, commanding an m-cap of ₹50,913 crore, exchange data shows.

 

Why is Laurus Labs share outperforming the market?

 

Laurus Labs is a research-driven pharmaceutical and biotechnology company committed to improving global health. It holds a leadership position in developing and manufacturing select Active Pharmaceutical Ingredients (APIs) and Finished Dosage Forms (FDF) across anti-retroviral, oncology, cardiovascular, and gastro therapeutics.

 

The company offers end-to-end Contract Development and Manufacturing Organization (CDMO) services, supporting innovators from early-stage development to commercial production.

 

Recently, Laurus Labs told its shareholders that the overall market dynamics across the portfolio remained healthy. It has signed multiple integrated CMO contracts and has started supplies.

 

The FDF new manufacturing lines expansion is also on track. The benefits from recent US launches and stability in the portfolio, continues to monitor uncertain tariff situation.

 

Till date, the company has filed 90 DMF filings cumulatively. On developed market FDF filings, it said 1 dossier was filed and 3 approvals were received in Q1. Cumulatively, 88 products filed till date, the company said.

 

The company further said that the small molecule CDMO market is structurally growing due to an increase in outsourcing. $80 billion Global SM CDMO demand is expected to grow >7 per cent compound annual growth rate (CAGR) from 2023-28 vs. 5 per cent in the last 5 years. $2 billion Indian CDMO potential to grow >14 per cent CAGR, ahead of the global market led by expanding service capabilities, the company said. 

 

Laurus Labs financials

 

In the April to June 2025 quarter (Q1FY26), the company's earnings before interest, taxes, depreciation, and amortization (Ebitda) margins expanded by 1,050 bps to close 24.8 per cent, following better operating leverage, product and segment mix.

 

Revenues stood at ₹1,570 crore, increasing by 31 per cent year-on-year (Y-o-Y), primarily driven by robust CDMO performance while growth in generic FDF partly offset by lower API business. Net profit increased 1,154 per cent Y-o-Y at ₹163 crore from ₹13 crore. The management remains confident in the company's outlook for improved growth in the rest of the year.

 

The CDMO growth was driven by several mid-to-late stage NCE deliveries and steady increase in sales from new manufacturing assets. Out of ₹3,400 core of capex that the company has incurred during FY22-25, almost ~77 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 31 per cent which has led to a significant margin expansion. Management aspires to take it further to ~50 per cent. Besides CDMO, Laurus is also investing in new edge-technologies such as Cell and Gene therapies," ICICI Securities said in the Q1FY26 result.

 

Additionally, the company's long-term capital expenditure guidance of ~₹5,630 crore is expected to drive a significant shift in its business mix towards more profitable segments in lieu of ARV, it added. The brokerage firm has a 'buy' rating on Laurus Labs with a target price of ₹1,035 per share.