Laurus Labs Q1 FY27 Results (NSE: LAURUSLABS)
Signal: Margin expansion
The read
5th straight quarter of margin expansion: consolidated EBITDA margin hit 29.4% (+500bps YoY) on a potent mix of input cost tailwind (raw material % of revenue fell 420bps to 38.8%) and operating leverage (employee costs +20.4% vs revenue +29.1%). PAT more than doubled YoY to ₹362 Cr, with EPS ₹6.81. The momentum is sustained across both standalone and group levels, with group outperforming on subsidiary contributions.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,026.31 Cr | 29.1% | 11.9% |
| EBIT | ₹596.42 Cr | 39.6% | |
| Net profit | ₹362.07 Cr | 124.5% | |
| EPS | ₹6.81 | 125.5% | |
| EBIT margin | 29.4% |
P&L walk
Revenue grew 29.1% YoY to ₹2,026 Cr, driven by volume/price mix. Gross margin expanded 625bps to 57.6% as raw material cost fell to 38.8% of revenue from 43.0% a year ago (input cost tailwind). EBITDA margin hit 29.4% (+500bps YoY) as employee costs grew only 20.4% vs revenue +29.1% (operating leverage). Finance costs dropped 18.0% YoY. PAT surged 124.5% YoY to ₹362 Cr, EPS ₹6.81 (+125.5% YoY).
Key positives
- Revenue ₹2,026 Cr, +29.1% YoY, accelerating from +25.6% YoY in Q3FY26 and +19.4% in Q4FY26
- Gross margin expanded 625bps YoY to 57.6% as raw material cost fell to 38.8% of revenue from 43.0%
- EBITDA margin expanded 500bps YoY to 29.4% — 5th consecutive quarter of expansion
- PAT ₹362 Cr, +124.5% YoY, driven by operating leverage and lower finance costs (-18% YoY)
- EPS ₹6.81, +125.5% YoY, tracking PAT growth
Key concerns
- QoQ revenue growth decelerated to +11.9% from Q4FY26's +19.4% YoY pace, though still strong
- Effective tax rate increased to 24.8% from 22.5% in Q4FY26, tempering net profit growth slightly
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