Laurus Labs Profit Surges 126% On Strong CDMO Growth

has delivered one of the more interesting pharmaceutical results this quarter. For Q2 FY27, the company reported a 126% year-on-year jump in net profit to ₹441.48 crore. Revenue increased 33% to ₹2,206 crore, while EBITDA surged 78% to ₹762 crore. But one segment really stands out. Its Contract Development and Manufacturing Organisation (CDMO) business recorded 75% revenue growth to ₹904 crore. Within this, small-molecule CDMO revenue increased 86%. For anyone unfamiliar with CDMO, pharmaceutical companies outsource the development and manufacturing of medicines to specialised players. This gives companies like Laurus an opportunity to work with global pharma businesses without relying entirely on their own branded medicines. Another important development was the improvement in EBITDA margins, which expanded to 34.5% from 26% a year ago. However, sustaining these margins will be important. Investors should also track whether the strong CDMO growth continues and how much of it translates into consistent cash generation. For me, the bigger story is Laurus Labs' improving profitability alongside the expansion of its contract manufacturing business. The next few quarters will show whether this momentum is sustainable.