Laurus Labs lifts standalone margin to 31.31% as costs lag revenue
Revenue grew 28.57% year on year against 17.55% expense growth, while management outlined more than Rs 3,000 cr of planned investment.
Filed 29 Oct 2026, 14:55 IST · Laurus Labs Ltd (LAURUSLABS)
Key takeaways
- Standalone operating margin rose 6.44 percentage points year on year to 31.31% as revenue grew faster than expenses.
- Standalone net profit increased 79.96% year on year to Rs 388.13 cr, while other income contributed 4.76% of pre-tax profit.
- Management said Laurus intends to invest more than Rs 3,000 cr across manufacturing and capability expansion in FY27 and FY28.
Price around the results
Operating leverage lifted standalone earnings
Revenue grew 28.57% year on year and 14.62% sequentially, while operating profit rose 61.84% and 26.36%, respectively. Net profit growth was therefore led by operations rather than non-operating income, which accounted for 4.76% of pre-tax profit. Interest expense rose 12.89% year on year and 8.01% sequentially, while the tax rate was nearly unchanged at 25.31%.
Margin improvement extended into a third straight quarter
Expenses rose 17.55% year on year and 9.97% sequentially, below revenue growth of 28.57% and 14.62%; this expanded operating margin by 6.44 percentage points year on year and 2.91 percentage points sequentially. Operating margin has now increased for three consecutive quarters, from 23.75% in Q4FY26 to 28.40% in Q1FY27 and 31.31% in Q2FY27. Laurus Labs was 11.41 percentage points above the 19.90% median operating margin of the 31 Healthcare peers that had reported.
Expansion plans centre on peptides and fermentation
Management said the peptide manufacturing facility was inaugurated ahead of schedule, taking total SPPS capacity above 16,000 litres, with further expansion planned. The company said its LB-4 fermentation unit is larger than 400,000 litres and is scheduled for commissioning in 3QFY27. Management also said qualification of the advanced biologics GMP facility is expected by the end of 2027, while the company reported more than 750 cell therapy infusions as of September 2026.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,014 cr | ₹1,757 cr | +14.62% | +28.57% |
| Other income | ₹25 cr | ₹20 cr | +23.17% | -13.11% |
| Expenses | ₹1,384 cr | ₹1,258 cr | +9.97% | +17.55% |
| Operating profit | ₹631 cr | ₹499 cr | +26.36% | +61.84% |
| Operating margin (%) | 31.31% | 28.40% | — | — |
| Interest | ₹38 cr | ₹35 cr | +8.01% | +12.89% |
| Depreciation | ₹98 cr | ₹96 cr | +2.02% | +2.20% |
| Profit before tax | ₹520 cr | ₹388 cr | +33.86% | +79.90% |
| Tax | ₹131 cr | ₹98 cr | +33.89% | +79.70% |
| Net profit | ₹388 cr | ₹290 cr | +33.86% | +79.96% |
| EPS (₹) | ₹7.18 | ₹5.37 | +33.71% | +79.95% |
Operating margin of 31.31% compares with a Healthcare sector median of 19.90% across 31 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The peptide manufacturing facility was inaugurated ahead of schedule during the period.
- The company reported more than 750 cell therapy infusions as of September 2026.
Guidance & outlook
- Laurus intends to invest more than ₹3,000 crore across its manufacturing network and capability expansion in FY27 and FY28.
- Qualification of the advanced biologics GMP manufacturing facility is expected by the end of 2027.
Planned next quarter
- The LB-4 fermentation manufacturing unit is scheduled to be commissioned in 3QFY27.
Expansion
- Peptide manufacturing capacity has significant further expansion planned.
- The peptide manufacturing facility was inaugurated, with total SPPS capacity above 16,000 litres and further expansion planned.
- The LB-4 fermentation manufacturing unit is larger than 400,000 litres and is scheduled for commissioning in 3QFY27.
What to watch
- Whether standalone operating margin holds above 31.31% after its third straight quarterly rise.
- Progress on the LB-4 fermentation unit, which management said is larger than 400,000 litres and scheduled for commissioning in 3QFY27.
- Whether other income remains around its current 4.76% share of pre-tax profit.