Laurus Labs zooms 53% in Q1FY27; logs sharpest quarterly rally in 5 years

Sustained clinical and commercial contracting across technologies and sites driving good growth outlook for CDMO business, the company said.

Laurus Labs share price movement

  Laurus Labs share price zoomed over 50 per cent in the first quarter (April to June 2026) of the financial year 2026-27 (Q1FY27), recording its sharpest quarterly rally in the past five years.

 

Share price of the Contract Development and Manufacturing Organization (CDMO) hit a record high of ₹1,530.30 on the BSE yesterday. At 02:28 PM on Tuesday, the stock quoted 1 per cent higher at ₹1,518, as compared to flat trewnd in the BSE Sensex at 76,730.

 

In the past three months, Laurus recorded positive returns of over 10 per cent each. In Q1FY27, the market price of Laurus zoomed 53 per cent. Earlier, in Q1FY22, the stock price of the pharmaceutical company skyrocketed 88 per cent during the quarter.

 

 

What’s driving Laurus stock price?

 

Companies with strong exposure to commercial-stage contracts and late-stage pipelines reported healthy growth, supported by ramp-up in commercialization and contribution from newer projects.

 

In FY26, Laurus' revenue were ₹6,813 crore with a growth of 23 per cent over previous year. This was mainly driven by significant growth in CDMO business, supported by Affordable Medicine portfolio, which is Generics. Gross margins were healthy and maintained around 60 per cent range and EBITDA margins expanded by 6.7 percentage points to 26.8 per cent.

 

Laurus delivered on successful transformation across both business and product portfolio. The company’s share of CDMO business has increased from 13 per cent 6 years back to over 30 per cent right now. The contribution from ARV (Antiretroviral) revenue came down from 67 per cent to 41 per cent in FY26.

 

CDMO business (small molecule) reported revenue of ₹1,896 crore in FY26; increased by 38 per cent from late-stage pipeline, commercial NCE API supplies, ramp-up of the growth projects. Sustained clinical and commercial contracting across technologies and sites driving good growth outlook, the company said. 

 

Laurus in its FY26 annual report said that the company is currently managing several capex growth projects across multiple high growth modalities, mid-to-large scale manufacturing infrastructure, which are expected to be executed in the next two years. These are expected to significantly enhance the company’s market opportunities, strengthen delivery capabilities and global position.

 

The management said in FY27, the company will continue to focus on deepening CDMO/CMO strategic partnership on integrated capabilities, strengthening technology platforms, advancing late stage/commercial pipeline as well as focused investments into capacity creation laying strong foundation for future growth and continuous transformation of our business. The management also expects healthy operating profit margins following better operating leverage and product mix.

 

Laurus is strategically transitioning towards a CDMO-led model, targeting ~50 per cent revenue contribution by FY29E. Growth is expected across segments: Generics supported by ARV recovery, higher volumes, improved utilisation and oncology API scale-up, while CDMO growth will be driven by increased order inflows from large players, commercialisation and a focus on high-complexity offerings. The evolving product mix, with higher CDMO contribution, is anticipated to support margin expansion, analysts at Choice Institutional Equities said in the Q4 result update. 

 

Meanwhile, analysts at Axis Securities flagged Laurus Labs as a high probability candidate for inclusion in the upcoming MSCI India Standard Index reshuffle, which is expected to take effect on August 31, 2026.  ==========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.