Hyderabad-based Laurus Labs has posted another record quarter, with its contract development and manufacturing (CDMO) business once again doing the heavy lifting. For the September quarter of FY27, the company reported consolidated net profit of ₹441 crore, up 126 per cent from ₹195 crore a year earlier, on revenue of ₹2,206 crore, a 33 per cent rise from ₹1,653 crore.

Alongside the numbers, the company announced a definitive agreement to acquire a 60 per cent stake in Montreal-based Galenvs Sciences, a move aimed squarely at the fast-growing oligonucleotide and RNA therapeutics space.

Advertisement

CDMO drives the margin story

EBITDA climbed 78 per cent year-on-year to ₹762 crore, and the EBITDA margin widened by about 850 basis points to 34.5 per cent from 26 per cent. Gross margin improved to 63 per cent. Net profit was also up around 20 per cent sequentially from ₹368 crore in the June quarter.

The CDMO division grew 75 per cent to ₹904 crore. Within it, small-molecule CDMO revenue rose 86 per cent to ₹875 crore, supported by commercial API supplies, late-stage clinical projects moving forward and the ramp-up of newly commissioned assets. The company credited higher CDMO volumes, operating leverage, a better business mix and improved capacity efficiency for the margin expansion.

For the first half of FY27, revenue stood at ₹4,233 crore, up 31 per cent, while EBITDA rose 72 per cent to ₹1,406 crore and net profit grew 126 per cent to ₹809 crore.

“Laurus achieved another record quarter of strong growth in revenue and profits, demonstrating the strength of our CDMO platform and affordable medicines portfolio as we execute on our transformation strategy,” said Dr Satyanarayana Chava, Founder and Chief Executive Officer, Laurus Labs.

Peptides and oligonucleotides in focus

Chava said the company has operationalised its first commercial-scale peptide plant in Visakhapatnam, with a significant capacity expansion already under way to meet rising demand for peptide therapeutics. Laurus has also made targeted investments in oligonucleotide and peptide-resin technologies to round out its integrated CDMO offering.

The Galenvs deal fits that plan. Laurus will invest $3.75 million, including a primary infusion of $2.75 million, for a 60 per cent stake at a pre-money valuation of $3.5 million, subject to due diligence. Galenvs brings expertise in precision magnetic nanoparticles, DNA/RNA technologies, early-stage oligonucleotide process development, conjugation and advanced purification. Laurus plans to pair these with its large-scale capabilities in peptides, complex chemistry, fermentation and sterile fill-finish.

“Galenvs brings differentiated technology capabilities in oligonucleotides and precision magnetic nanoparticles, which we believe can create significant value for our customers and strengthen our capabilities in TIDES,” Chava said. Galenvs founder and CEO Jamal Daoud said the combination creates a platform to serve customers from early-stage development through scale-up and manufacturing.

Why it matters for Indian pharma manufacturing

The quarter underlines how Indian CDMOs are moving up the value chain, from commodity APIs towards peptides, oligonucleotides and other complex modalities that global innovators increasingly want to outsource. With GLP-1 peptides and RNA-based medicines pulling in large volumes of development work, capacity and technology bets of this kind are likely to shape which Indian players capture the next wave of contract manufacturing demand.

Shares of Laurus Labs closed 2.75 per cent higher at ₹2,245 on the BSE after the results.

Like

Dislike

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter , Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!