Brokerages stay bullish on Laurus Labs as CDMO momentum and margins improve

Brokerages led by Motilal Oswal Financial Services remain bullish on Laurus Labs, maintaining a BUY rating and raising FY27 earnings estimates by 8% and FY28 by 6%, citing strong CDMO momentum. The CDMO segment grew 36% year-on-year to about ₹2,080 crore in FY26 and now contributes over 30% of total revenue, up from 13% six years ago, with the share projected to reach 50% by FY30. Ebitda margin expanded 670 basis points year-on-year to 26.8%, supported by operating leverage, while the company has outlined capital expenditure of about ₹3,000 crore over the next two years, with over 90% allocated to mid and large-scale manufacturing expansion.