Laurus Labs Ltd Q2 FY2027 Concall Summary

Source transcript PDF: https://assets.stockscans.in/docs/utxvrhcyrboyy0cq3sb2vu6k.pdf

Key Takeaways


CDMO Performance & Pipeline

Satyanarayana Chava: "Today, if any partner comes with a tech pack, we will not say no because we don't have capabilities, except monoclonal antibodies and cephalosporins and penicillins. Those are the areas we don't have right now. Other than that, we can offer any chemistry, any modality, any scale, any potency also."

Peptide & GLP-1 Strategy

Krishna Chava: "For the commercial revenues, we expect somewhere around the '29 time frame for some of these peptide capacities that we are talking about today. But with that being said, in terms of utilization, even for some of these validation campaigns also, it will be fairly high for the asset itself."

Acquisitions & Capability Build-Out

Satyanarayana Chava: "We are investing because our customers are asking. It's not that we are investing, we are liking. Our customers are asking us to get there."

Laurus Bio & Fermentation


Affordable Medicines & Formulations


Financials & Capital Allocation

V. V. Ravi Kumar: "Last year only we have a free cash flow when you are making that kind of a capex investment, we have taken a call between the free cash flow versus the growth capital, and then we are investing growth capex."

Guidance & Commitments

CommitmentSpecificsTimeline
EBITDA marginOver 30% for the full yearFY27
Gross marginOver 60% for the full yearFY27
CapexINR 3,000 crores combinedFY27–FY28
Capex run-rate thereafterApproximately INR 1,500 crores per year, may increase if opportunities ariseBeyond FY28
Laurus Bio LB4 commercial suppliesTrials in Q4 FY27, commercial supplies beginQ1 FY28
KRKA JV meaningful revenuesAfter validations and filings starting mid-2027FY28–FY29
Peptide commercial revenuesFrom capacities currently being discussedAround FY29
GMP fermentation for animal healthFacility operationalH2 FY28
Asset turnsMove from current 1x to 1.1x (6-year average); peak of 1.4x is a longer-term target with no timelineUndated

Key Metrics

MetricQ2 FY27
Total revenue₹2,206 cr, record quarterly revenue
Gross margin63%, maintained at healthy level; H1 at 62.9%
EBITDA₹762 cr, margin of 34.5%, expanded 2.7 ppt over previous quarters
Profit after tax₹441 cr
CDMO revenue₹875 cr, 86% YoY growth; H1 at ₹1,710 cr, 77% growth
Affordable medicines revenue₹1,302 cr, 15% YoY growth; H1 growth of 13%
Laurus Bio revenue₹29 cr; H1 at ₹64 cr, down 16% YoY on campaign phasing
R&D spending to sales4.3% (H1 FY27), increased over 34% YoY
ROCE22.5% (H1 FY27), up from 17.7% in FY26
Capex₹470 cr in Q2; ₹864 cr in H1; FY27–28 guidance of ₹3,000 cr
Net debt₹2,466 cr; debt-to-EBITDA at 1.02x, improved from 1.28x last quarter
Small-molecule API reactor volumeOver 9,000 kL in operation
Peptide SPPS reactor volumeOver 16,000 L commissioned; further expansion underway
ARV API revenue₹625 cr
ARV FDF revenue₹677 cr
Cumulative DMFs filed92
Developed market formulation products filed96 cumulative; 2 dossiers filed and 2 approvals received in H1
Quality audits cleared in H159, without critical findings