Generics maker Laurus Lab’s net profit more than doubles in Q1 on strong CDMO business growth

Generic drugmaker Laurus Labs’ consolidated net profit more than doubled year-on-year (YoY) to ₹361.99 crore for the June quarter, driven by a 29% jump in revenue.

Revenue from operations rose to ₹2,026.31 crore, supported by a 67% surge in CDMO (Contract Development and Manufacturing Organization) business to ₹870 crore. Within CDMO, small molecules segment grew 69% to ₹835 crore, driven by growth in late-stage clinical and commercial Active Pharmaceutical Ingredient (API) supplies. Revenue from the Bio (large molecules) segment were up 21% to ₹35 crore.

Generics division revenue increased 10% YoY to ₹1,156 crore.

Laurus Labs Executive Director and CFO V. V. Ravi Kumar said the company delivered a strong operating performance in Q1 despite challenging macroeconomic volatility.

There was sustained momentum across both CDMO and affordable medicine (generics) divisions. The earnings before interest, taxes, depreciation and amortisation (Ebitda) margins were strong and consistently improved at 31.8%, supported by improvement in capacity utilisation and operating leverage, he added.

Founder and CEO Satyanarayana Chava highlighted that Laurus delivered “record” quarterly revenue with expanded profitability and continued its portfolio transformation. “During the quarter, we also achieved important milestones, including agreement to in-license two antibody drug conjugates (ADCs) and securing final handover of land in Visakhapatnam for a new manufacturing facility, reinforcing our long-term growth strategy,” he said.