Laurus Labs: CDMO Drives a Strong Earnings Turnaround

is seeing a sharp improvement in its earnings profile as years of investments in manufacturing capacity, R&D and new technologies begin to translate into stronger growth. The key driver is its CDMO business, where Q1 FY27 revenue rose around 69% YoY to ₹835 crore, making it one of the largest contributors to the company’s growth. Overall Q1 revenue stood at ₹2,026 crore, while EBITDA increased 66% YoY to ₹644 crore, with EBITDA margin expanding to 31.8%. The improvement is particularly significant because Laurus had undertaken substantial capex over the past few years, raising concerns about the pace of returns. The current ramp-up in late-stage clinical and commercial CDMO orders suggests that these investments are now moving into the monetisation phase. Q1 FY27 capex was about ₹394 crore, with more than 85% directed towards growth initiatives.