Laurus Labs Q1FY27 profit rises 123.94% YoY to Rs 362.07 cr
Consolidated revenue rose 29.10% YoY, while operating margin improved to 23.92% in the quarter ended June 30, 2026.
Filed 24 Jul 2026, 14:49 IST · Laurus Labs Ltd (LAURUSLABS)
Key takeaways
- Consolidated net profit rose 123.94% year on year as revenue grew 29.1% and operating margin widened 4.6 percentage points.
- Operating margin rebounded 7.51 percentage points sequentially because expenses grew only 1.81% against 11.85% revenue growth.
- The stock rose 2.53% after the results, below its 3.08% median move after the past eight result announcements.
Price around the results
Revenue growth restored operating leverage
Laurus Labs reported consolidated revenue growth of 29.1% year on year, while expenses rose 21.74%; this lifted operating profit 59.83%. Sequentially, revenue increased 11.85% but expenses rose only 1.81%, driving a 7.51-percentage-point margin recovery. Other income contributed only 1.91% of pre-tax profit, so the quarter's profit increase was not materially dependent on it.
Tax and interest added to the profit increase
Net profit grew faster than operating profit year on year because interest expense fell 18.02% and the tax rate declined 3.36 percentage points to 24.8%. Sequentially, the tax rate rose 2.81 percentage points, partly limiting the conversion of the operating improvement into net profit. The 123.94% year-on-year net-profit increase therefore reflected both operating leverage and lower financing and tax costs.
Margin recovered, but remains below the healthcare peer median
Operating margin rose from 19.32% in Q1FY26 and 16.41% in Q4FY26 to 23.92% in Q1FY27, reversing the decline seen through Q4FY26. It remained 0.72 percentage points below the 24.64% median for the eight healthcare peers that had reported the same quarter. The latest margin is also below the 27.12% recorded in Q4FY25, so the recovery has not fully restored the earlier level.
The market reaction was positive but within Laurus Labs' usual range
The stock gained 2.53% on the results date, although it opened 0.53% lower before recovering. In the past eight result reactions, it rose five times and fell three times, with a median absolute move of 3.08%; the latest move was positive but smaller than that typical magnitude.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,026 cr | ₹1,812 cr | +11.85% | +29.10% |
| Other income | ₹9 cr | ₹12 cr | -22.20% | -11.98% |
| Expenses | ₹1,542 cr | ₹1,514 cr | +1.81% | +21.74% |
| Operating profit | ₹485 cr | ₹297 cr | +63.04% | +59.83% |
| Operating margin (%) | 23.92% | 16.41% | — | — |
| Interest | ₹42 cr | ₹40 cr | +4.40% | -18.02% |
| Depreciation | ₹124 cr | ₹122 cr | +1.45% | +6.02% |
| Profit before tax | ₹481 cr | ₹361 cr | +33.20% | +114.68% |
| Tax | ₹119 cr | ₹79 cr | +50.23% | +89.06% |
| Net profit | ₹362 cr | ₹282 cr | +28.35% | +123.94% |
| EPS (₹) | ₹6.81 | ₹5.17 | +31.72% | +125.50% |
Operating margin of 23.92% compares with a Healthcare sector median of 24.64% across 8 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.53% | +2.96% |
Volume on the results session was 1.11× its 20-day average.
What to watch
- Whether operating margin holds above 23.92% after the 7.51-percentage-point sequential recovery.
- Whether expense growth stays below revenue growth after 21.74% year-on-year expense growth versus 29.1% revenue growth.
- Whether the tax rate remains near 24.8% after the 3.36-percentage-point year-on-year decline.