Key Metrics of Laurus Labs
About Laurus Labs
Sectors
Company details
- Website
- lauruslabs.com
- Founded
- 2005
- Registered office
- Laurus Enclave, Plot Office 01, E. Bonangi Village,, Parawada, Visakhapatnam, In-ap, 531021
- Listed
- NSE: LAURUSLABS · ₹1,970.00
Operational Areas of Laurus Labs
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Vendor checks & payment capacity
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Credit ratings
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 03 Jul 2026 | CARE | Other | — | — | — | — | View |
| 01 Jul 2025 | CARE | Revised | AA | A1+ | Stable | ₹3,641 Cr | View |
| 20 Jun 2024 | CARE | Reaffirmed (from AA) | AA | A1+ | Negative | ₹3,434 Cr | View |
| 22 Jun 2023 | CARE | Reaffirmed | AA | A1+ | Stable | ₹3,696 Cr | View |
| 23 Jun 2022 | CARE | Reaffirmed | AA | A1+ | Stable | ₹3,250 Cr | View |
| 24 Jun 2021 | CARE | Reaffirmed (from AA) | AA | A1+ | Stable | ₹300 Cr | View |
| 23 Mar 2021 | CARE | Reaffirmed | AA- | A1+ | Positive | ₹3,530 Cr | View |
| 30 Jun 2020 | CARE | Reaffirmed | AA- | A1+ | Stable | ₹1,665 Cr | View |
| 13 Jun 2019 | CARE | Reaffirmed | AA- | A1+ | Stable | ₹2,924 Cr | View |
Credit strengths (CARE, Jul 2026)
+ Reputed and geographically diversified customer base
The company has a reputed and geographically diversified customer base for API and formulation. The expansion in scale of operation in the formulations segment has resulted in addition of new customers and other players in low -and-middle income countries (LMIC) market. In CDMO segment, it has also signed several new projects with few big pharma compa nies. Historically, the company’s revenue profile has been well-diversified, with a substantial portion generated from export markets. Export sale
+ Accredited manufacturing facilities
Laurus has total 15 manufacturing sites in Vizag, Bangalore, Hyderabad, and Mumbai (through its associate company, ImmunoACT). Of 15 manufacturing facilities, seven are approved by the USFDA. Some sites are also approved by other regulatory authorities such as ANVISA Brazil, and WHO Geneva, among others. The company has successfully passed 132 audit inspections without critical findings as of March 2026. Proven research and development (R&D) capabilities
+ Proven research and development (R&D) capabilities
Laurus’ R&D centre spread over 56,000m2 is at Hyderabad, Vizag, and Bangalore. The R&D centre houses regulatory affairs, IP management, and quality assurance. R&D facilities are staffed by over 1540 R&D scientists supporting 68 projects. The company incurred a total R&D spend of ~₹282 crore in FY26 (~4% of TOI), against ₹257 crore (5% of TOI) spent in FY25. The R&D team focuses on projects that would generate long term revenues/profits. The operational team also focuses on improving processes
+ Operating leverage from recent capex and healthy growth in FY26 sales
TOI increased by ~23% y-o-y to ₹6844, driven by growth across CDMO and generics segments. (1) The CDMO business saw strong traction from late-stage pipeline programs, commercial supplies of complex new chemical entities (NCE) APIs, and ramp-up of new projects with global partners. The CDMO segment has also witnessed the shift from clinical trials to commercial supplies in FY26. (2) Meanwhile, the generics segment benefited from higher volumes in ARV and oncology portfolios, and strong uptake fro
+ Improved capital structure and debt coverage indicators
In FY26, the improvement in overall business performance also translated into a healthier capital structure. Debt to equity ratio and overall gearing improved to 0.20x and 0.50x as on March 31, 2026 (0.24x and 0.64x, as on March 31, 2025), respectively. Other debt risk metrics (term debt/gross cash accruals [GCA] and TD/GCA) have improved in FY26, to 0.75x and 1.88x (against 1.38x and 3.64x in FY25) due to improvement in GCA. Total term loan outstanding has decreased from ₹978.08 crore as on Mar
Credit challenges
− Ongoing capex partly funded through debt
The company spent ~₹2000-2500 crore from FY24-FY26 on growth capex. The capex is incurred in increasing its capacity in CDMO segment and through its subsidiary, LSPL for building the facility for animal health and crop protection product. The capex is partly funded through debt, which led to rise in TD and concomitantly higher interest cost. CDMO assets, which became operational recently have already started to scale up in FY26 and expected to improve further. CareEdge Ratings notes that the
− Inherent volatility in CDMO revenues
Unlike the ARV generics business, which is anchored by multi-year tender frameworks providing volume predictability, each CDMO programme delivery is governed by the customer's development timeline, meaning a delayed regulatory approval, or a rescheduled batch campaign can impact revenue. With Laurus’ current CDMO scale of ~₹2,080 crore, earnings continue to exhibit inherent lumpiness due to the project-based nature of the business. In FY26, there is a higher revenue contribution from late stage
− Exposure to regulatory risk
The company is exposed to regulatory risk with its operations centred majorly into manufacturing pharmaceutical APIs and formulations. The pharmaceutical industry is highly regulated in many other countries and requires approvals, licenses, registrations, and permissions for business activities. The approval process for a new product registration is complex, lengthy,and expensive. The time taken to obtain approval varies by country but generally takes from six months to several years from the
− Foreign exchange fluctuation risk
Laurus is exposed to foreign exchange fluctuation risk in view of large volume and high value transactions of export and impo rt, a phenomenon common to players in the industry. However, Laurus uses derivative instruments , primarily to hedge foreign exchange. The company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in line with its risk m anagement policy.
Could lead to an upgrade
• Significant improvement in TOI and PBILDT margin. • Total debt (TD) to PBILDT remaining below 1x on a sustained basis.
Could lead to a downgrade
• TD/PBILDT, going beyond 2.75x on a sustained basis. • Pressure on PBILDT margin on a sustained basis. • Significant elongation of operating cycle beyond 200 days .
Agency-reported financials (CARE, 22 Jun 2023)
| Metric | March 31, 2021 | March 31, 2022 | March 31, 2023 |
|---|---|---|---|
| Total operating income | ₹4,831 Cr | ₹4,946 Cr | ₹6,041 Cr |
| PBILDT | ₹1,569 Cr | ₹1,434 Cr | ₹1,592 Cr |
| PAT | ₹984 Cr | ₹832 Cr | ₹793 Cr |
| Overall gearing (times) | 0.62× | 0.57× | 0.53× |
| Interest coverage (times) | 23.02× | 14.01× | 9.64× |
| Revenue growth (YoY) | — | 2.4% | 22.1% |
| EBITDA margin | 32.5% | 29.0% | 26.4% |
| Implied interest cost (EBITDA ÷ coverage) | ₹68.17 Cr | ₹102 Cr | ₹165 Cr |
| PAT margin | 20.4% | 16.8% | 13.1% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long-term bank facilities | Working capital & bank lines | — | ₹831 Cr | — | — | Revised | CARE |
| Long-term Short-term bank | Working capital & bank lines | — | ₹1,445 Cr | — | AA (Stable) | Revised | CARE |
| facilities 1,085.00) | Other | — | ₹1,365 Cr | — | A1+ | Other | CARE |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | ₹895 Cr | CARE A1+ |
| Commercial Paper (Carved out) | — | Withdrawn |
| Commercial Paper (Standalone) | — | Withdrawn |
| Forward Contract | ₹49.0 Cr | CARE A1+ |
| Term Loan | ₹937 Cr | CARE AA; Stable |
| Working Capital Demand loan | ₹446 Cr | CARE A1+ |
| Working Capital Limits | ₹2,114 Cr | CARE AA; Stable / CARE A1+ |
Lenders
| Fund-based - LT | Term Loan | Axis Bank Ltd. |
| Fund-based - LT | Term Loan | Export Import Bank of India |
| Fund-based - LT | Term Loan | HDFC Bank Ltd. |
| Fund-based - LT | Term Loan | Proposed |
| Fund-based - LT | Term Loan | State Bank of India (New York) |
| Fund-based - LT/ ST | Working Capital Limits | Axis Bank Ltd. |
| Fund-based - LT/ ST | Working Capital Limits | Bank of Bahrain and Kuwait B.S.C |
| Fund-based - LT/ ST | Working Capital Limits | Citi Bank |
| Fund-based - LT/ ST | Working Capital Limits | HDFC Bank Ltd. |
| Fund-based - LT/ ST | Working Capital Limits | J.P. Morgan Chase Bank N.A. |
| Fund-based - LT/ ST | Working Capital Limits | Proposed |
| Fund-based - LT/ ST | Working Capital Limits | RBL Bank Limited |
| Fund-based - LT/ ST | Working Capital Limits | State Bank of India |
| Fund-based - ST | Working Capital Demand loan | HDFC Bank Ltd. |
| Fund-based - ST | Working Capital Demand loan | J.P. Morgan Chase Bank N.A. |
| Non-fund-based - ST | BG/LC | Axis Bank Ltd. |
| Non-fund-based - ST | BG/LC | Bank of Bahrain and Kuwait B.S.C |
| Non-fund-based - ST | BG/LC | Citi Bank |
| Non-fund-based - ST | BG/LC | HDFC Bank Ltd. |
| Non-fund-based - ST | BG/LC | MUFG Bank Ltd. |
| Non-fund-based - ST | BG/LC | RBL Bank Limited |
| Non-fund-based - ST | BG/LC | State Bank of India |
| Non-fund-based - ST | Forward Contract | RBL Bank Limited |
| Non-fund-based - ST | Forward Contract | State Bank of India |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Next action stable or better (model) | 43% |
| Information on file | 89% · missing: Auditor details |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 43% chance the next rating action is stable or better
What happened, step by step
- Jun 2019 — Project / plant of ₹431 cr
- Jun 2020 — Term debt tied up
“Growth opportunities in Formulations and Synthesis division: The company has developed FDF manufacturing capacity of 5 billion tablets per year at unit 2 with total cost of Rs. 431.00 crore.”
Rated limits by facility
Timeline
From the report
Liquidity: Strong The company’s liquidity position is strong marked by healthy cash accruals of over ₹1365 crore in FY26,against repayment obligations of ~₹330 crore of principal and ₹171 crore of interest in FY26.
From the report
Liquidity: Strong The company’s liquidity position is strong marked by healthy cash accruals of over ₹1365 crore in FY26,against repayment obligations of ~₹330 crore of principal and ₹171 crore of interest in FY26.
From the report
The company had cash balance of ₹113 crore as on March 31, 2026.
From the report
Liquidity: Strong The company’s liquidity position is strong marked by healthy cash accruals of over ₹750 crore in FY25 against repayment obligations of ~₹320 crore in FY25.
From the report
Liquidity: Strong The company’s liquidity position is strong marked by healthy cash accruals of over ₹750 crore in FY25 against repayment obligations of ~₹320 crore in FY25.
From the report
The company had cash balance of ₹144 crore as on March 31, 2025.
From the report
The company has cash balance of ~₹139 crore as on March 31, 2024, and CARE Ratings anticipates GCA to increase by about 50% in FY25 over FY24.
From the report
Average utilisation for 12-months ending in March 2024 stood comfortable at about 61%, providing necessary cushion in case of exigency.
From the report
Further the average working capital utilisation stood moderate at 59% during FY23.
From the report
The company generated Gross Cash Accruals of ₹1140 crore during FY23 against the debt obligation of ₹225 crore.
From the report
The company has cash balance of Rs. 48.46 crore as on March 31, 2023.
From the report
Furthermore, the average utilisation for the 12 months ending in March 2023 stood comfortable at about 59%, thus providing necessary cushion in terms of exigency.
From the report
The company availed two new term loans, one from HDFC Bank ( ₹200 crore for capex reimbursement) and one from SBI New York (₹195 crore for unit 2, 3 and 4 expansion).
From the report
Furthermore, the average working capital utilisation stood moderate at 62% during FY22.
From the report
Furthermore, the company has cash balance of ₹87.40 crore as on March 31, 2022.
From the report
Average utilisation of fund-based limits for past 12 months ending March 2022 stood moderate at 62%, thus providing necessary cushion in terms of exigency.
From the report
Three Hundred Crore Only) *carved out of the sanctioned working capital limits of the company Details of instruments/facilities in Annexure -1 Detailed Rationale & Key Rating Drivers The revision in the ratings assigned to the bank facilities of Laurus Labs Limited (Laurus) is on account of significant improvement in the total operating income and profitability margins during FY21 (refers to the period April 01 to March 31) driven by v olume sales under Formulation Dosage Forms (FDF) and Generic Active Pharmaceuticals Limited (API) such as anti - retro -viral and oncology segment, generation o
From the report
The company has availed term loan of about Rs.400 crore for partly funding the capacity expansion of Rs.708 crore.
From the report
Further the average working capital utilization stood moderate at 61% during FY21.
From the report
Further, the company had cash bal ance of Rs.48.77 crore as on March 31, 2021.
From the report
Two Hundred Crore Only) *carved out of the sanctioned working capital limits of the company Details of instruments/facilities in Annexure -1 Detailed Rationale & Key Rating Drivers The reaffirmation of the ratings assigned to the bank facilities of Laurus Labs Limited (Laurus) with change in outlook from ‘Stable’ to ‘Positive’ is on account of significant improvement in the total operating income and profitability mar gins during 9MFY21 driven by volume sales under Formulation Dosage Forms (FDF) and Generic Active Pharmaceuticals Limited (API) such as diabetes and cardio -vascular, continued i
From the report
During FY20, no new term loans were availed and one term lo an has been prepaid.
From the report
The low overall gearing provides adequate head room for raising 3 CARE Ratings Limited Press Release additional funds which the company has availed by way of enhancement of working capital limits by Rs.200 crore thus pro viding necessary financial flexibility.
From the report
Outlook - Stable) 373.2 CARE A1+ Short term Bank Facilities Reaffirmed (enhanced from 313.2) (A One Plus) 1665.01 Total Facilities (One Thousand Six hundred and Sixty five and one lakh only) CARE A1+ Short-term –Commercial paper* 200.00 Reaffirmed (A One Plus) *carved out of the sanctioned working capital limits of the company.
From the report
During FY20 no new term loans were availed and one term loan has been prepaid.
From the report
One Thousand Three Hundred Total Facilities and sixty one crore and seventy seven Lakh only) Short-term –Commercial CARE A1+ 200.00 Reaffirmed paper * (A One Plus) *carved out of the sanctioned working capital limits of the company.
From the report
During FY19, the company has availed ECB loans from HSBC amounting to Rs. 172.93 crore and Rs. 40 crore of term loans from Citi Bank to fund the ongoing capex for capacity expansion at Unit 3, 4 and 6 and regular maintenance capex.
From the report
Further, average utilization of fund based limits including CP for past 12 months ending March 2019 stood moderate at 80.91% and the company has sufficient liquidity cushion to meet any kind of exigency.
From the report
Growth opportunities in Formulations and Synthesis division: The company has developed FDF manufacturing capacity of 5 billion tablets per year at unit 2 with total cost of Rs. 431.00 crore.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Laurus Labs
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
 Dr. Reddy's Laboratories |
Part of Dr. Reddy's Laboratories. | drreddys.com | 1984 | India |
 Aurobindo Pharma |
Part of Aurobindo Pharma. | aurobindo.com | 1986 | Hyderabad, India |
 Cipla |
Part of Cipla. | cipla.com | 1935 | Mumbai, India |
| Formulations & Contract Manufacturing · Pharmaceuticals & Healthcare | lupin.com | 1968 | India | |
 Glenmark Pharmaceuticals |
Part of Glenmark Pharmaceuticals. | glenmarkpharma.com | 1977 | Mumbai, India |
| Part of Biocon. | biocon.com | 1978 | Bangalore, India | |
 ALKEM LABORATORIES LIMITED |
Formulations & Contract Manufacturing · Pharmaceuticals & Healthcare | alkemlabs.com | 1973 | Mumbai, Maharashtra, India |
 Torrent Pharmaceuticals |
Formulations & Contract Manufacturing · Pharmaceuticals & Healthcare | torrentpharma.com | 1959 | Ahmedabad, India |
| ASTER DM QUALITY CARE LIMITED | Discovered Companies · Other Industries | — | — | Hyderabad, Telangana, India |
 Thomas Cook India |
Part of Thomas Cook Group. | thomascook.in | 1978 | Mumbai, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
biotechnology
Filings
No filings on record yet.