Laurus Labs and Sai Life Sciences Stocks Surge Despite Market Weakness
Laurus, Sai Life Sciences up 3% in weak market; what's driving CDMO stocks?
Business Standard
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Shares of Laurus Labs and Sai Life Sciences rose by 3% each, reaching new highs amid a declining market. Laurus Labs reported a revenue growth of 5% for Q4FY26, driven by its expanding Contract Development and Manufacturing Organization (CDMO) business, while Sai Life's revenue increased by 43% in 9MFY2026, indicating strong industry performance.
- 01Laurus Labs and Sai Life Sciences stocks increased by 3% despite a weak market.
- 02Laurus Labs reported a 5% revenue growth for Q4FY26, driven by its CDMO services.
- 03Sai Life Sciences achieved a 43% revenue growth in the first nine months of FY2026.
- 04Analysts remain positive on both companies, citing strong growth prospects in the CDMO sector.
- 05Laurus Labs aims for 50% revenue contribution from CDMO by FY29.
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On a day when the Nifty 50 index fell by 0.47%, shares of Laurus Labs (₹1,237.90) and Sai Life Sciences (₹1,124) surged by 3%, marking new highs on the National Stock Exchange (NSE). Over the past month, Laurus Labs has seen a 14% increase in share price, while Sai Life's shares have risen by 15%, outpacing the benchmark index's 8.9% rise. Laurus Labs reported a revenue of ₹1,812 crore for Q4FY26, a 5% increase year-on-year, with a profit after tax of ₹281.9 crore. The company's CDMO business has grown significantly, now contributing over 30% of total revenue, up from 13% six years ago. Analysts from Choice Institutional Equities have given Laurus a target price of ₹1,255, while Motilal Oswal maintains a Buy rating with a target price of ₹1,370. Meanwhile, Sai Life Sciences has seen a CAGR of 25% in revenues from FY2022 to FY2025, with a 43% increase in the first nine months of FY2026, supported by strong performance in both discovery and CDMO segments. Despite facing revenue concentration risks due to its reliance on regulated markets, ICRA notes that Sai Life's robust infrastructure and established client relationships may help mitigate competitive pressures.
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The strong performance of Laurus Labs and Sai Life Sciences indicates a positive trend in the pharmaceutical sector, potentially leading to job creation and increased investment in local manufacturing capabilities.
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