Laurus Labs surges 8%, stock records sharpest intraday gain since Jan 30

The pipeline is expected to be robust, and the company expects to do well in the human health and animal health CDMO divisions in Q4FY25E and in FY26E, according to analysts.

Shares of Laurus Labs moved higher by 8 per cent to ₹ 607.50 on the BSE in Friday’s intra-day trade amid heavy volumes. The pharmaceutical stock recorded its sharpest intraday rally since January 30, 2025, when it had surged 10 per cent. It had hit a 52-week high of ₹ 646.25 on February 7, 2025.

 

Shares of most of the Indian pharmaceutical companies rallied on Friday after the US President Donald Trump declared an immediate 90-day tariff pause for many countries, effectively putting on hold the 26 per cent levy on Indian goods. However, the White House imposed a 10 per cent blanket tariff on nearly all US imports.

 

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Meanwhile, Laurus Labs on Thursday, April 10, informed that the meeting of the board of directors of the company was scheduled on April 24, 2025, inter alia, to consider and approve the audited financial results of the company for the quarter and year ended March 31, 2025. The board will also consider the payment of 2nd Interim Dividend for FY 2024-25 and fixation of record date for determining the eligibility of shareholders, if approved.

 

The company remains committed to its FY25E growth outlook, supported by scheduled project deliveries for a few late-stage projects in March 2025 quarter (Q4FY25E). The pipeline is expected to be robust, and the company expects to do well in the human health and animal health contract development and manufacturing organization (CDMO) divisions in Q4FY25E and in FY26E, according to analysts.

 

Meanwhile, Laurus Labs delivered a strong performance in the December 2024 quarter (Q3FY25), driven by a robust growth in its Custom Synthesis and Generic finished dosage form (FDF) segments. Custom Synthesis stood out as a key growth driver, benefiting from high demand, improved operational efficiencies, and a strategic shift towards high-value and complex molecules. The company achieved notable improvements in profitability, driven by a better product mix, process efficiencies, and operating leverage.

 

The management said the quarter witnessed robust growth in the CDMO and FDF division, partially offset by soft API performance. Healthy commercial execution is our top priority and our performance is well on track with revenues accelerating in Q4. 

 

“Based on our continued progress across diverse portfolio and pipeline projects I remain confident about our long-term future, and I acknowledge the focus and commitment of our team in making Laurus better positioned to deliver value to all stakeholder in coming years,” Dr. Satyanarayana Chava, Founder & Chief Executive Officer commented while announcing the Q3 results on January 24.

 

Post Q3 earnings, brokerage firm KRChoksey Shares & Securities increased its FY26E/FY27E EPS estimates by 0.6 per cent and 5.0 per cent to ₹ 13.5/₹ 19.6, respectively showing confidence that the company’s strategic focus on advanced intermediates and APIs, several R&D launches are expected to drive growth in the medium term, and late-stage projects and shift towards advanced manufacturing capabilities indicate a solid long-term growth trajectory.

 

After six quarters of earnings decline, Laurus has seen strong improvement in its financial performance. Over the past 2-3 years, Laurus has invested considerably in the CDMO segment to build capacities to cater to customers’ manufacturing requirements. In fact, it has certain contracts in hand to be executed over the medium term. It continues to invest in fermentation capacities to enhance its CDMO offerings; Motilal Oswal Financial Services said in its Q3 earnings review report.