Andhra-Based Life Insurance Corporation Backed Multibagger Pharmaceuticals Company Q1 FY26 Net Profit Surges 1,154% and Secures 531.77 Acres for Rs 5,630 Crore Laurus Pharma Zone Project

DSIJ Intelligence-2 / 28 Jul 2025/ Categories: Mindshare, Trending

Andhra-Based Life Insurance Corporation Backed Multibagger Pharmaceuticals Company Q1 FY26 Net Profit Surges 1,154% and Secures 531.77 Acres for Rs 5,630 Crore Laurus Pharma Zone Project

On a year-to-date basis, the stock is up by 47 per cent, while in the last year it has given multibagger returns of 114 per cent..

Share price of Laurus Labs surged 7.6 per cent on Monday, July 28, to touch a new 52-week high of Rs 901.5 apiece. The stock later traded at Rs 891.75 on NSE, up 6.45 per cent. The rally followed the company’s robust Quarterly Results for the June quarter of FY26, marking a third consecutive quarter with operating margins exceeding 20 per cent.

For Q1 FY26, Laurus Labs reported a net profit of Rs 163 crore, up 1,154 per cent compared to Rs 13 crore in Q1 FY25. Revenue for the same period grew 31 per cent year-on-year (YoY) to Rs 1,570 crore against Rs 1,195 crore in the previous fiscal year. The growth was driven by higher Contract Development and Manufacturing Organisation (CDMO) deliveries and strong business fundamentals.

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EBITDA rose 127 per cent YoY to Rs 389 crore compared to Rs 171 crore last year, with margins improving to 24.8 per cent from 14.3 per cent. Gross margins strengthened to 59.4 per cent, aided by a favourable CDMO mix and continuous process improvements. CEO Dr. Satyanarayana Chava attributed the growth to advancing pipeline projects and an expanding CDMO business, reaffirming confidence in the company’s strategic direction.

In a separate development, the Government of Andhra Pradesh allocated 531.77 acres of land in Anakapalli district for Laurus Labs’ upcoming pharmaceutical manufacturing plant. The company plans to invest Rs 5,630 crore in the project, which is expected to create employment for 6,350 people in three phases over eight years

On a year-to-date basis, the stock is up by 47 per cent, while in the last year it has given multibagger returns of 114 per cent. Life Insurance Corporation of India holds 2.17 per cent stake in this company.

The company continues to strengthen its CDMO operations and enhance its technological capabilities, positioning itself for long-term value creation and expansion in the pharma sector.

Disclaimer: The article is for informational purposes only and not investment advice.