Q1 2026 Laurus Labs Ltd Earnings Call Transcript
Key Points
- Laurus Labs Ltd (BOM:540222) reported a strong start to the financial year with a 31% year-on-year growth in total income, driven by robust demand in the CDMO and generic divisions.
- The company announced three major capacity expansions, including a microbial fermentation project, a gene therapy and antibody-drug conjugate facility, and a finished formulation facility, which are expected to create growth opportunities.
- Gross margins expanded to 59%, and EBITDA margin improved to 25%, reflecting better operating leverage and product mix.
- The CDMO business showed significant growth, with sales reaching INR493 crores, driven by mid- to late-stage NCE deliveries and new manufacturing assets.
- Laurus Labs Ltd (BOM:540222) successfully passed 39 quality audits without any critical findings, demonstrating strong compliance with regulatory standards.
- Laurus Bio, the large molecule CDMO division, reported subdued Q1 sales of INR29 crores, flat year-on-year, due to specific scale-up challenges.
- The company faces pricing challenges in the Laurus Bio segment as the billing model shifts from per batch to per kg as products mature.
- There is uncertainty in the ARV segment due to potential price drops, which could impact overall growth despite increased volumes.
- The non-ARV formulation business has shown moderate growth, with expectations for improvement only from Q4 onwards.
- The company has not disclosed specific timelines for when the CDMO business will contribute 50% of sales, indicating potential uncertainty in achieving this target.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nitin Agarwal from DAM Capital. Thank you, and over to you, sir.
Hi, thanks, Steve.
Hi, good afternoon, everyone, and a very good evening, and welcome to Laurus Labs' Q1 F26 earnings call, hosted by DAM Capital Advisors Limited. On the call today, we have representing Laurus Labs management Dr. Satyanarayana Chava, Founder and CEO; Mr. V. V. Ravi Kumar, Executive Director and CFO; and Mr. Vivek Kumar, AVP, Investor Relations.
I hand over the call to Dr. Chava to make the opening comments, and then we'll open the floor for questions. Please go ahead, sir.
Good afternoon to all our stakeholders.
Your company made healthy progress to start the financial year with increasing contributions from CDMO business and continued advancement of our
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