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Laurus Labs Hits New High
Laurus Labs reached a new intraday high of ₹1,331.75 on Monday, up 1% on the day. Its stock has surged 18% over the past month, far outperforming the BSE Sensex's 4.2% decline during the same period.
Sai Life Sciences Rebounds Amid Q4 Results
Sai Life Sciences shares rose 2% to ₹1,106.65, climbing back 16% from their Friday low. The company reported a steady January-March 2026 quarter (Q4FY26), with revenue, Ebitda, and PAT up 4%, 12%, and 18% year-over-year, respectively. Although this slightly missed analyst expectations, the dip in the CDMO business (down 5% year-on-year) was on a strong base from the prior year. Full-year CDMO growth remained robust at 33% year-on-year.
Growth Outlook and Expansion Drive Sai Life
Management reaffirmed its long-term guidance for revenue to grow at a 15–20% compound annual growth rate (CAGR) with 28–30% steady-state Ebitda margins over the next two to three years. The Contract Research Organisation (CRO) segment showed strong momentum, increasing 24% year-over-year. Analysts at JM Financial noted Sai Life's ongoing capacity expansion, projecting FY27 capital expenditure (capex) between ₹1,100 crore and ₹1,300 crore, primarily for CDMO growth. They anticipate the company will surpass its guidance and set a target price of ₹1,371.
Laurus Labs: Analyst Confidence and Capacity Growth
Motilal Oswal Financial Services expressed a positive outlook on Laurus Labs, citing its consistent investment in manufacturing capacities for both its CDMO and generics businesses, along with improved technology offerings. The brokerage raised earnings estimates for FY27 and FY28 by 8% and 6%, respectively, expecting stronger CDMO contracts and continued growth. They maintained a 'Buy' rating with a ₹1,370 target price.
Rising Costs: West Asia Conflict Impact
Sai Life Sciences acknowledged that the West Asia conflict has driven up input and logistics costs, creating near-term pressure on its cost structure. The company is discussing price adjustments with clients, though immediate cost recovery is not assured. Major pharmaceutical clients are actively working to minimize potential tariff-related disruptions, with no significant impact seen to date.