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Laurus Labs Share Price Hits New High: What is Driving the Rally?

Written by: Aayushi ChaubeyUpdated on: 19 Dec 2025, 4:05 pm IST
Laurus Labs share price has hit a new high on the BSE. The stock has gained nearly 73% this year, due to sharp margin expansion and robust CDMO growth.
Laurus Labs Share Price
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Laurus Labs share price touched a fresh all-time high of ₹1,043 during Friday’s intra-day trade, gaining around 3% on the BSE. The stock surpassed its earlier peak of ₹1,040 recorded on December 1, 2025, reflecting strong investor confidence backed by solid earnings performance.

Laurus Labs Share Price Gains Over 73% 

So far in calendar year 2025, Laurus Labs share price has delivered an impressive return of about 73 %. It has significantly outperformed the broader market. During the same period, the BSE Sensex has risen by around 8%. This strong outperformance has positioned Laurus Labs as the top gainer among BSE midcap non-finance companies this year.

Laurus Labs Share Price Gained Attention After Robust Q2FY26 Results

The rally in the stock price is largely driven by strong results for the September 2025 quarter. The company reported revenue of ₹1,653 crore, marking a year-on-year growth of 35%. EBITDA rose sharply by 136% to ₹429 crore, supported by operating leverage and a favourable product mix.

EBITDA margins remained healthy at 26%, highlighting improved efficiency. Profit after tax stood at ₹193.8 crore, reflecting strong operational execution and a better mix of high-margin products.

Momentum Continues Across Businesses

Laurus Labs has now reported a second consecutive quarter of over 30% growth. Gross margins improved sequentially, aided by higher commercial molecule deliveries and improved mix.

The Contract Development and Manufacturing Organisation business continues to be a key growth driver. In Q2FY26, the CDMO division recorded sales of ₹471 crore. For the first half of FY26, CDMO revenue stood at ₹964 crore, registering growth of nearly 88% year-on-year. This growth has been supported by mid- to late-stage programme deliveries, commercial supplies and contributions from new manufacturing assets.

How is Laurus Labs Improving its Business Mix?

Over FY22–26, the company incurred capital expenditure of around ₹3,400 crore, with nearly three-fourths directed towards API and CDMO segments. These investments are now translating into higher revenue run rates and improved margins. The contribution of CDMO to overall revenue has increased meaningfully, reducing dependence on legacy segments.

Laurus Labs continues to maintain a strong position in APIs and finished dosage forms across multiple therapeutic areas, including anti-retroviral, oncology and cardiovascular segments.

Read more: BoJ Interest Rate Hike: Impact on Sensex, Nifty and Global Markets.

Conclusion

Laurus Labs’ stock rally reflects sustained earnings momentum, improving margins and a favourable shift in business mix towards higher-value segments. With strong demand visibility and benefits from past investments starting to flow in, the company remains firmly on investors’ radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Dec 19, 2025, 10:30 AM IST

Aayushi Chaubey

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