Laurus Labs Q3 Profit Soars 174% on Strong CDMO, Generics Growth

Introduction to Laurus Labs' Strong Quarter

Laurus Labs Ltd. announced a robust financial performance for the third quarter ending December 31, 2025, showcasing significant growth across key metrics. The pharmaceutical company reported a consolidated net profit of ₹252 crore, marking a remarkable 174% year-on-year increase. This growth was underpinned by a solid rise in operational revenue and improved margins, reflecting the successful execution of its business strategy.

Detailed Financial Performance

The company's revenue from operations for Q3 FY26 grew by 26% to ₹1,778 crore, compared to ₹1,415 crore in the same period of the previous fiscal year. This top-line growth translated into even stronger profitability. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed a 70% year-on-year jump, reaching ₹485 crore from ₹285 crore in Q3 FY25. Consequently, the EBITDA margin expanded significantly to 27.3%, supported by sustained operating leverage.

Segment-Wise Business Performance

The growth was broad-based, with strong contributions from the company's core business segments. The Generics division was a key driver, with its revenue climbing 37% year-on-year to ₹1,327 crore in the third quarter. For the first nine months of FY26, the Generics business reported a 26% increase in revenue to ₹3,510 crore, indicating sustained demand and successful new launches.

The Contract Development and Manufacturing Organisation (CDMO) segment also maintained its positive trajectory. For the nine-month period of FY26, the CDMO business recorded revenues of ₹1,491 crore, a substantial 43% increase year-on-year. This was primarily driven by the ramp-up of mid-to-late-stage projects and commercial supplies from existing partnerships. The CDMO-Small Molecules sub-segment was particularly strong, growing 50% to ₹1,372 crore during the same period. However, the Bio business reported a 9% decline in revenue for the nine months, at ₹119 crore.

Management Commentary and Outlook

Dr. Satyanarayana Chava, Founder and Chief Executive Officer, expressed satisfaction with the results. He stated, "We are successfully executing on our strategy with continued advancements in important CDMO projects, ramping up new launches and strengthened leadership in antiretroviral in driving strong quarter and cumulative performance. These results confirm our Full year outlook of strong revenue growth and improving margin momentum."

V V Ravi Kumar, Executive Director and Chief Financial Officer, highlighted the operational strength. "We delivered another quarter of strong operational and financial performance, based on strong Generic business and continued demand upside in CDMO small molecule offerings," he said. He also noted that gross margins for the nine-month period improved by over 4.3 percentage points to 60.1% due to a favorable CDMO mix.

Nine-Month Performance and Financial Health

For the nine months ended December 31, 2025, Laurus Labs achieved total revenues of ₹5,001 crore, a 30% increase over the previous year. EBITDA for the period stood at ₹1,303 crore, a growth of 104%, resulting in an EBITDA margin of 26.1%. The company's financial health has also strengthened, with net debt leverage decreasing to 1.2 times EBITDA, even as it continues to make capital expenditure investments.

Future Investments and Growth Strategy

The management reiterated its commitment to investing in high-growth areas to secure future expansion. The company is on track with its investments to enhance its service capabilities in Peptide technology platforms and advanced therapies like ADC (Antibody-drug conjugates) and Gene therapy. These strategic investments are aimed at transforming the business portfolio and driving long-term growth.

Investor Conference Call

To discuss the quarterly and nine-month results in detail, Laurus Labs will host a conference call for investors and analysts on Friday, January 23, 2026, at 5:00 p.m. IST. The session will include an interactive question-and-answer segment for participants.

Conclusion

Laurus Labs' third-quarter results for FY26 demonstrate strong operational execution and robust demand across its key business verticals. The significant jump in profitability and revenue, coupled with a confident management outlook and strategic investments in future technologies, positions the company well for sustained growth. Investors will be watching closely for further updates on its capacity expansions and progress in high-value business opportunities.