Laurus Labs Shares Hit Record High Following Strong Q2 Results and Dividend News

Laurus Labs shares climbed nearly six per cent to reach a record high of ₹2,381.15 on Friday, October 30. This jump followed strong September-quarter results where revenue rose 33 per cent year-on-year and net profit more than doubled.

Financial Growth

The company reported revenue of ₹2,206 crore for Q2FY27, up from ₹1,653 crore in the same quarter last year. Net profit surged 126 per cent to ₹441 crore from ₹195 crore, while EBITDA increased to ₹762 crore from ₹429 crore. The EBITDA margin reached 34.5 per cent, and the gross margin expanded to 63 per cent from 59.9 per cent. For the first half of FY27, revenue rose 31 per cent to ₹4,233 crore. Dr Satyanarayana Chava, founder and chief executive officer of Laurus Labs, stated that the company delivered another record quarter in revenue and profitability due to its CDMO platform and Affordable Medicines portfolio.

Expansion And Outlook

The company launched its first commercial-scale peptide manufacturing plant in Vizag and plans capital expenditure of more than ₹30 billion over FY27 and FY28. Meanwhile, brokerages shared mixed views on the stock. Jefferies kept a hold rating with a target price of ₹2,100, while Kotak maintained a sell rating with a fair value of ₹1,400 due to valuation concerns despite strong growth prospects.

Context

Laurus Labs is a major pharmaceutical company operating in both generic medicines and contract development and manufacturing. Sharp stock rallies following strong quarterly earnings often draw caution from market analysts regarding high valuations.