Laurus Labs reported a strong financial and operational performance for FY26, driven by sustained growth in its Contract Development and Manufacturing Organization (CDMO) business, improved product mix, and operational efficiencies, according to insights shared during its Q4 FY26 earnings call transcript.

For FY26, Laurus Labs reported revenue of Rs 6,813 crore, reflecting a 23% year-on-year increase, while EBITDA rose 64% to Rs 1,826 crore with EBITDA margins expanding to 26.8%. Net profit for the year surged 148% to Rs 889 crore. 

During the March quarter, the company posted revenue of Rs 1,812 crore and net profit of Rs 279 crore, supported by continued momentum in the CDMO segment and favorable operating leverage. Q4 EBITDA margin improved to 28.9%, compared to 27.7% in the corresponding period last year. 

Management highlighted that Laurus Labs’ CDMO business crossed Rs 2,000 crore in annual revenue during FY26, emerging as a key growth engine for the company. The business remains diversified across therapeutics and customers, reducing concentration risks. 

The company also indicated that it is increasing investments in future growth platforms, including peptides, fermentation, biologics, animal health, and formulations. Laurus Labs has expanded its two-year capital expenditure plan to around Rs 3,000 crore to support these initiatives. 

In addition, Laurus Labs continued to strengthen cash generation and deleverage its balance sheet during FY26. Operating cash flow rose significantly, enabling the company to reduce net debt despite elevated capital expenditure investments. 

Management stated that the company expects continued growth momentum in FY27 across both CDMO and affordable medicines businesses, while aiming to maintain or further improve current margin levels. 

The company also announced a second interim dividend of Rs 1.20 per equity share for FY26.