Laurus Labs has delivered a very strong turnaround in FY27

Laurus Labs has delivered a very strong turnaround in FY27, led by its CDMO business, improving capacity utilisation and operating leverage. The biggest long-term opportunity is the transition toward higher-value CDMO, peptides, biologics and complex therapies, but after the sharp stock rerating, valuation and execution are now important risks. 🟢 Q1 FY27 performance Revenue: ₹2,026 crore, +29% YoY EBITDA: ₹644 crore, +66% EBITDA margin: 31.8% vs 24.8% PAT: ₹362 crore, +125–126% CDMO revenue: ₹870 crore, +67% Small-molecule CDMO revenue grew about 69%. This is important because profit is growing much faster than revenue, indicating significant operating leverage and a better business mix. 🚀 Major positive triggers 1. CDMO is becoming the main growth engine CDMO revenue reached ₹870 crore in Q1, driven by increased supplies for late-stage clinical and commercial projects. Management is targeting around 50% of total revenue from CDMO by FY30. 2. Peptides and GLP-1 opportunity Laurus is expanding into peptides and GLP-1-related products and is working on 2–3 GLP-1 products. Management expects peptides to become a meaningful revenue contributor over time. 3. Large expansion programme FY27 capex guidance has been increased to around ₹2,000 crore from ₹1,500 crore, reflecting demand across small molecules, APIs, peptides and fermentation. The company is also progressing on biologics capacity. 4. Strong CRDMO sector environment The Indian CRDMO sector recorded its strongest growth in seven quarters in Q1 FY27, supported by increased RFPs from global innovator-pharma companies and improving order visibility. Laurus was among the companies benefiting from this recovery. 5. Portfolio diversification Laurus is investing in small molecules, fermentation, peptides, gene therapy and ADCs. It also in-licensed two ADC assets for development and commercialisation in India.