Laurus Labs Q1 FY27 Revenue Hits Record INR2,026 Crores

Total Revenue: INR 2,026 crores for Q1 FY27, representing a 29% year-on-year (YoY) growth.
Gross Margin: Maintained at a healthy 62.7%, which is 3.3% higher than the previous year.
EBITDA: Stood at INR 644 crores with an EBITDA margin of 31.8%, representing a 7 percentage point expansion over the previous quarter.
Profit After Tax (PAT): INR 368 crores for the quarter.
Return on Capital Employed (ROCE): 19%, up from 17.7% in the previous year.
R&D Spend: 5.8% of revenue, which is 70% higher than the previous year, driven by investments in gene therapy and ADC technology infrastructure.

Revenue: INR 835 crores, showing a 69% YoY growth.
Growth Driver: Acceleration in late-stage clinical and commercial deliveries for multiple global partners.
Business Mix: 55% of CDMO revenue came from commercial supplies, with the remainder from clinical-stage supplies (primarily Phase III).
Diversification: Revenues are well-diversified with no single product or customer contributing significantly.
Capacity Expansion: Investments are ongoing at the Vizag site and in commercial-scale peptide capacities based on customer demand.

Revenue: INR 35 crores, a 21% YoY growth.
Growth Driver: Customer revenue diversification and pipeline progress on larger global accounts.
Capacity: Construction of a commercial-scale fermentation facility (Phase 1: 400+ kiloliters) is progressing and is expected to be operational by the end of CY2026.
Revenue Mix: Approximately 20% from animal origin-free cell culture ingredients and enzymes, and 60% from various CDMO molecules at early stages.

Revenue: INR 1,156 crores, a 10% YoY growth.
Growth Driver: Higher volumes across the established portfolio, including ARVs and oncology, where the company maintains market leadership. Strong momentum from recently launched products in developed markets.
ARV Breakdown: ARV API revenue was INR 415 crores; ARV FDF revenue was INR 254 crores; total ARV revenue was INR 669 crores.
Regulatory Filings: Cumulative BMS filings stand at 92. Two new developed market formulation dossiers were filed in Q1, taking the cumulative product filings to 96.
Geographic Expansion: A new office has been established in South Africa to capture growing opportunities in the region.

Capex: INR 394 crores invested in Q1 FY27. The full-year FY27 capex guidance has been revised upwards to INR 2,000 crores from the previous guidance of ~INR 1,500 crores. This is primarily to meet capacity requirements for existing customer demands and expansion of offerings within small molecules and new modalities.
Debt: Net debt stood at INR 2,656 crores. Debt-to-EBITDA ratio was 1.28 (vs. 1.25 last quarter), with the slight increase attributed to capex plans.
New Agreement: Signed a development and commercial agreement with Aarvik Therapeutics for 2 ADC molecules (in clinical stage) for the Indian market.
Land Parcel: The final handover of a 500+ acre land parcel from the AP government is in its final stages.
Krka JV Update: The oncology facility is expected to be ready early next year (CY2027), and the solid oral facility in the second half of CY2027. Total investment so far is INR 400 crores, with an additional INR 400 crores required, partly funded by a loan from the partner.
Quality & ESG: The company underwent 24 quality audits in Q1 without any critical findings. The Science-Based Target initiative (SBTi) has validated the company's near-term emissions reduction targets.

Management expressed confidence in the ongoing transformation strategy and the ability to deliver sustained growth.
The target for the CDMO segment to contribute over 50% of total revenue by FY30 was reaffirmed.
The company is focused on becoming a fully integrated pharmaceutical company offering end-to-end solutions from API to drug product.
Investments in future modalities (peptides, ADCs, gene therapy) are conscious decisions for long-term growth, expected to contribute meaningfully post FY30.

The constant currency growth impact on revenue was approximately 2%.
The company does not have significant customer advances.
The product mix is expected to remain at approximately 1/3 ARV and 2/3 non-ARV, with the ARV share likely to decrease further.
A foreign exchange gain of INR 5 crores was recorded on the balance sheet.
The asset turnover ratio target is to reach slightly above 1.0.
The company confirmed it has molecules in its CDMO portfolio generating over INR 200 crores in revenue.
Details on specific programs, such as those in the GLP-1 (peptide) space, were not disclosed due to confidentiality.