ICICI Securities notes Laurus’ CDMO growth in Q1 was broad-based, led by late-stage clinical projects and commercial API supplies, with the CDMO run rate rising from ₹220-250 crore to ₹450-500 crore, and then to about ₹800 crore over two years, signaling sustainable demand as roughly 55% of CDMO revenue comes from commercial suppliers and 45% from late-stage projects.

Laurus Labs’ share price hit a new intraday high of ₹2,087 on the BSE, up 1% in a weak market ahead of its Q2 FY27 earnings due next week.

Kotak Institutional Equities expects Synthesis revenue to grow 86% YoY to ₹880 crore in Q2 FY27 (up 5% QoQ), ARV API sales up 7% YoY (up 2% QoQ), and overall API sales up 11% YoY, with gross margins improving 240 bps YoY to 62.3% (down 40 bps QoQ) and EBITDA rising 67% YoY to ₹680 crore, with EBITDA margin around 31.2%.

Sector outlook for Indian CDMOs is upbeat, with sector revenue projected to rise from $3-3.5 billion to about $22-25 billion by 2035, driven by global demand and capacity expansions.

The CDMO sector is a key driver for Laurus Labs’ momentum, with industry data suggesting continued double-digit revenue growth in Q1 FY27 and a strong long-term outlook.

Laurus Labs will have its Q2 FY27 results considered by the board on October 29, 2026, alongside plans to pay an interim dividend for FY 2026-27.

Over the last month, Laurus Labs outperformed the market by rising 6% while the BSE Sensex fell 1%; over three months the stock gained 35% versus a 4.7% decline in the index, and over six months it surged 83% from a 52-week low of ₹913.35 on February 2, 2026.