Laurus Labs Ltd

Meeting Details

• Date: August 19, 2026; Motilal Oswal 22nd Annual Global Investor Conference, Mumbai; in-person one-on-one and group meetings.

ESG score disclosure

• ESG score of 63/100 for FY2026 assigned by NSE Sustainability Ratings and Analytics Limited.
• Disclosed on August 10, 2026; Laurus Labs did not engage NSE Sustainability; score prepared independently from public data.

Financial Performance

• Revenue INR 2,026 crores, up 29% YoY.
• Gross margin around 62.7%.
• EBITDA margin 31.8%, up 7 percentage points QoQ.
• PAT around INR 368 crores; ROCE ~19% vs 17.7% prior year.
• Capex spent in the quarter INR 394 crores.
• Net debt INR 2,656 crores; debt-to-EBITDA ~1.28.
• Operating cash flow not disclosed on the call.
• Direct exports account for about 55%–60% of revenue.
• Affordable Medicines revenue INR 1,156 crores, up 10% YoY.
• CDMO revenue INR 835 crores; CDMO growth 69%.
• Laurus Bio sales INR 35 crores, up 21% YoY.
• ARV revenue INR 669 crores; ARV APIs INR 415; ARV FDF INR 254.
• Handover of 500+ acres land parcel from AP government in final stages.
• Aarvik Therapeutics licensed 2 preclinical ADC assets; GLP tox India mid-next year; IND planned.
• Capex landmark: 400+ KL capacity to go commercial early next year.
• FY30 target: CDMO revenue at least 50% of total.

Operating / Segment Update

• CDMO grew 69% to INR 835 crores, driven by late-stage clinical and commercial deliveries.
• Small molecule CDMO revenue: 55% of CDMO from commercial supplies.
• Affordable Medicines momentum supported by ARVs and oncology portfolio.
• Laurus Bio contributing to growth with diversified pipeline and customer base.

Balance Sheet and Cash Flow

• Forex balance-sheet gain: about INR 5 crores.

Projects and Capex

• FY27 capex guidance raised to INR 2,000 crores.
• Earlier talk cited INR 3,000 crores for FY27 and FY28.
• Capacity expansion at Vizag with peptide capacity additions.
• Krka JV: oncology facility ready early next year; solid oral facility H2 2027.
• Krka JV investment to date: INR 400 crores; additional INR 400 crores planned; partly loan-funded.
• Aarvik Therapeutics: two ADC programs licensed; GLP tox work planned in India mid-next year.
• Laurus Bio ramp expected in 18–24 months; capacity fungible across programs.

Outlook and Guidance

• CDMO to cross 50% of total revenue by FY30.
• R&D spend 5.8% of revenue; about 70% higher YoY; aligned with long-term portfolio focus.
• Capex intent tied to multi-product demand; not limited to a single customer.

Q&A Highlights

• Constant currency growth for the quarter about INR 36 crores, ~2%.
• In CDMO, 55% of revenue from commercial supplies in small molecule segment.
• Aarvik: 2 preclinical ADCs licensed; IND planned after GLP work.
• No customer advances in this quarter.
• Direct export share remains around 55%–60% of revenue.

ESOP allotment and capital update

• Nomination & Remuneration Committee allotted 62,635 equity shares on July 27, 2026.
• Allocation by scheme: 435 (2016 IV), 47,528 (2018 IV), 14,672 (2021 II).
• Money realized on exercise totals Rs 2,89,60,852.50.
• Post-allotment paid-up capital updated to Rs 1,08,06,24,436; equity shares 54,03,12,218.
• Exercise price per share: Rs 301.50 (2016 IV); Rs 463.50 (2018 IV and 2021 II).

NCLT order and hearing

• NCLT order dated 24 July 2026 directs service of Form CAA-3 notices.
• Next hearing for the Scheme is on 10 September 2026.
• The Scheme involves demerger of Unit-1 from LSPL into Sriam and amalgamation of LSPL with Laurus.

NCLT order and Scheme hearing

• NCLT order (July 24, 2026) directs Form CAA-3 notice to regulators.
• Next hearing date for the Scheme is September 10, 2026.
• Scheme demerges LSPL Unit-1 into Sriam and amalgamates LSPL into Laurus.
• Petitioners are LSPL, Sriam Labs, and Laurus Labs Limited.
• No financial amounts disclosed in this update.

Change in Directorate

• Dr. Rajesh Koshy Chandy, Independent Director, retires effective close of business July 26, 2026 after completing second term.