Archive · 6 Dec 2025
Laurus Labs Expands CDMO Operations Amid High Valuations
Laurus Labs is a company that makes medicines and helps other companies make theirs.
They've been growing fast, especially in a part of their business called CDMO, which stands for making medicines for other companies.
This part of their business is growing quickly and now makes up 30% of their money.
They're planning to spend a lot of money to make this part even bigger.
Their stock has gone up a lot, and even though it's expensive, some people think it's still a good idea to keep it.
They're also making new kinds of medicines and helping other companies with their medicines.
They have plans to spend even more money in the next few years to keep growing.
Laurus Labs' CDMO segment grew 88% YoY in H1FY26, now accounting for 30% of revenues.
The company is investing ₹5,000 crore in Visakhapatnam to expand CDMO operations.
Stock valuations are high at 62 times one-year forward earnings, but growth outlook is positive.
Laurus Labs is expanding into large molecule CDMO operations and specialty modalities.
The company plans to invest $600 million over eight years for further expansion.
- Who
- Laurus Labs
- What
- Expansion of CDMO operations and high valuations
- When
- H1FY26 and future plans
- Where
- Visakhapatnam, Bengaluru
- Why
- To sustain growth momentum and add specialized modalities
- Revenue Growth
- 30% in H1FY26, up from 19% in FY21
- CDMO Projects
- 110 active projects, 15 commercial
- CDMO Growth
- 88% YoY growth in H1FY26
- Valuation
- 62 times one-year forward earnings
- Expansion Plans
- ₹5,000 crore in Visakhapatnam
- Debt to EBITDA
- 2.5 times as of March 2025
- EBITDA Margin
- 24% in H1FY26