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Laurus Labs share price at record high after Q2 results 20⁠⁩26, dividend announcement - Should you buy pharma stock?

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In short

The company's net profit more than doubled year-on-year to ₹441 crore, aided by a healthy 63% gross margin and strong CDMO contributions. Strategic investments are continuing, with over ₹30 billion in planned capital expenditure targeted for high-growth sectors such as advanced therapies and oligonucleotides through FY28. While Jefferies raised its price target to account for future capacity, Kotak maintained a Sell recommendation over elevated market valuation concerns.

Key points

  • The newly operational Vizag peptide facility strengthens the company's long-term manufact…: The newly operational Vizag peptide facility strengthens the company's long-term manufacturing growth pipeline.
  • Future capital expenditures will exceed ₹30 billion across FY27 and FY28 for high-growth…: Future capital expenditures will exceed ₹30 billion across FY27 and FY28 for high-growth segments.
  • Brokerages remain cautious on current equity valuations despite the firm's strong operati…: Brokerages remain cautious on current equity valuations despite the firm's strong operational momentum.

Sources checked by our analysis pipeline: 1

Laurus Labs share price climbed nearly 6% to a record high of ₹2,381.15 on Friday, October 30, after the pharmaceutical company reported strong September-quarter results, with revenue rising 33% year-on-year and net profit more than doubling. The company also announced an interim dividend of Re 1 per share.

The stock rose for the fifth consecutive trading session, gaining around 21% during this period. So far in 2026, Laurus Labs shares have surged 111%, significantly outperforming the Nifty 50, which has declined 12.2%. The stock has rebounded 161% from its 52-week low of ₹913.35, recorded on February 2, 2026.

Laurus Labs reported revenue of ₹2,206 crore for Q2FY27, compared with ₹1,653 crore in the corresponding quarter last year. Net profit surged 126% year-on-year to ₹441 crore from ₹195 crore, while EBITDA increased to ₹762 crore from ₹429 crore.

The EBITDA margin stood at 34.5%, while the gross margin expanded to 63% from 59.9% in Q2FY26. The performance was driven by sustained growth in the contract development and manufacturing organisation (CDMO) business and continued momentum in the Affordable Medicines division.

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