Laurus zooms 82% so far in 2025; set for best yearly performance in 5 years

The stock hit a new high of ₹1,095, appreciated 117% from its 52-week low of ₹504.30 touched on January 28, 2025.

Laurus Labs share price today: Share price of Laurus Labs hit a new high of ₹1,095, gaining 1 per cent on the BSE in Tuesday’s intra-day trade on expectations of strong performance of the Contract Development and Manufacturing Organisation (CDMO) segment. In the past five weeks, the stock price of the pharmaceutical company has rallied 12 per cent.

 

Thus far in the calendar year 2025, Laurus Labs has outperformed the market by zooming 82 per cent, set to post its best yearly performance in the past five years. In comparison, the BSE Sensex was up 8 per cent during the period. Meanwhile, the stock appreciated 117 per cent from its 52-week low of ₹504.30 touched on January 28, 2025. Earlier, in the calendar year 2020, the stock had skyrocketed 391 per cent.

 

 

Why did Laurus Labs outshine in calendar year 2025?

 

Laurus’ revenue grew 33 per cent year-on-year (Y-o-Y) to ₹3,223 crore in the first half of the financial year 2025-26 (H1FY26), driven by healthy growth across both CDMO and Generics division. The growth was also driven by multiple late‐phase and commercial‐scale deliveries. Strong traction in complex small‐ molecule projects continues to expand the pipeline, supported by a balanced mix of large and mid‐sized global pharma clients.

 

Ebitda margins at 25.4 per cent increased 1,080 basis points (bps), due to product mix, improving revenue delivery driving better operating leverage. The company posted net profit of ₹358 crore against ₹33 crore in H1FY25.

 

The company has a robust pipeline of over 110 active projects, including more than 90 in human health and around 20 in animal health and crop science. A multi-year agreement signed in FY25 with a leading crop science company further strengthens the segment’s visibility. Although the contribution remains limited for now, Laurus continues to focus on scaling up this segment as well.

 

The company’s management in the Q2 earnings conference call said they are seeing increased customer interest for dedicated fermentation lines. Construction work for the commercial scale fermentation facility in Vizag is progressing as planned, and expects Phase 1 capacity of about 400 kilolitres to be handy by the end of 2026.

 

Analysts at Motilal Oswal Financial Services expect the CDMO segment to deliver a 30 per cent revenue compound annual growth rate (CAGR) over FY25-28E, reaching around ₹3,000 crore, supported by expansion in production capacities as well as the addition of capacities.

 

The brokerage firm raised its earnings estimates by 11 per cent/10 per cent/6 per cent for FY26/FY27/FY28, factoring in improved anti-retroviral (ARV) prospects, steady pick-up in CDMO projects, and higher generics business backed by CMO opportunities. Analysts expect 50 per cent earnings CAGR over FY25-28 and value Laurus at 58x 12 month forward earnings to arrive at target price of ₹1,110.

 

Laurus continues to pursue an aggressive and strategically aligned capex cycle aimed at scaling its manufacturing and R&D capabilities across emerging growth platforms. The company targets a capex outlay of ₹1,000 crore in FY26F, with ₹480 crore already deployed in H1FY26. Over the medium- to long-term, Laurus plans to invest ₹5,000 crore over the next five-to-six years and ₹8,000 crore over the next eight years, aided by the recent allotment of 532 acres of land from the Andhra Pradesh government to establish a large integrated pharmaceutical complex, said analyst at InCred Equities.

 

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