“Laurus Labs Q2: 875% profit surge, CDMO boom, and a ₹1,030 target—Is this India’s next pharma rocket?”

📊 Laurus Labs Q2 FY26 Highlights - Revenue: ₹1,653 crore, up 35% YoY - Net Profit: ₹195 crore, up 875% YoY - EBITDA: ₹429 crore, up 136% YoY - EBITDA Margin: 26%, up from 14.6% YoY - Gross Margin: 59.6%, improved by 4.5 percentage points 🔍 Investor Watchouts - CDMO Dependency: CDMO revenue rose 53% YoY to ₹518 crore—watch for scalability and client concentration risks - Small Molecule Focus: High growth but subject to regulatory and pricing pressures - Capex & R&D Spend: Aggressive expansion may impact short-term cash flows - Valuation Premium: Stock rerating hinges on sustained margin delivery 🚀 Future Growth Drivers - CDMO Expansion: ₹1,040 crore revenue in H1 FY26, up 74% YoY—core to future earnings - Global Partnerships: Strengthening ties with biotech and pharma innovators - API & Formulations: Diversification into high-value segments - Operational Efficiency: Margin gains from process optimization and mix shift 📌 Other Strategic Factors - Brokerage Upgrade: B&K Securities initiated coverage with ₹1,030 target, citing strong CDMO cycle - Dividend Announced: Reinforces cash flow confidence - Regulatory Tailwinds: USFDA and EU approvals support export growth