LAURUS LABS Q2 FY27 CONCALL: RETAINS 30%+ EBITDA MARGIN GUIDANCE; ₹3,000 CR CAPEX PLAN, PEPTIDE COMMERCIAL REVENUES EXPECTED AROUND 2029

• FY27 EBITDA Margin Guidance: Management reiterated guidance of above 30% EBITDA margin and above 60% gross margin, despite Q2 EBITDA margin reaching 34.5%. • Revenue Outlook: Management remains confident of sustained growth, supported by CDMO commercial supplies, new product launches and stable affordable medicines demand. No specific revenue growth guidance provided. • CDMO Growth: Small molecule CDMO revenue surged 86% YoY to ₹875 Cr in Q2 FY27. Management expects healthy growth momentum supported by late-stage projects, commercial supplies and new customer engagements. • CDMO Revenue Visibility: Management indicated visibility for the next 18–24 months, with no significant customer concentration or major destocking risks currently anticipated. • Peptide Commercialization: Commercial-scale peptide manufacturing has commenced, with meaningful commercial revenues from certain programs expected around 2029. • Peptide Validation Timeline: Management expects validation batches to begin over approximately 12–18 months, depending on clinical development and regulatory progress. • Peptide Capacity Expansion: Existing solid-phase peptide synthesis capacity exceeds 16,000 litres. Management is undertaking significant further expansion based on expected customer requirements. • Integrated Peptide Business: Company is developing end-to-end capabilities covering peptide synthesis, purification, isolation and API manufacturing rather than supplying only peptide fragments. • Capex Guidance: Management reiterated approximately ₹3,000 Cr total capex for FY27–FY28, with the majority directed toward API and other high-value manufacturing capabilities. • Long-Term Capex Outlook: Management expects annual capital expenditure to remain around ₹1,500 Cr beyond FY28, with potential upside depending on new business opportunities. • Laurus Bio 4: New fermentation facility is expected to undergo qualification in Q3 FY27, followed by trials in Q4 FY27. Commercial supplies could begin from Q1 FY28. • Laurus Bio Outlook: Management expects business momentum to improve from Q1 FY28 as new fermentation capacity becomes operational and customer programs scale up. • KRKA Joint Venture: Phase 1 formulation facility is expected to start operations and product validations around mid-2027, with meaningful revenue contribution anticipated during 2028–2029. • Affordable Medicines: Management expects formulation revenue to continue growing in upcoming quarters, supported by new product registrations, stable ARV pricing and expanding emerging-market opportunities. • Oligonucleotide Expansion: Proposed 60% acquisition of Canada-based Galanis Sciences will strengthen capabilities in oligonucleotide development, purification and complex RNA/DNA-based therapies. • Peptide Backward Integration: Investment in SAMC Resins is expected to improve supply security, manufacturing competitiveness and availability of critical materials used in peptide synthesis. • GLP-1 Opportunity: Management expects its expanding peptide capabilities to support meaningful participation in GLP-1-related opportunities over the next five years, without disclosing specific contracts. • Asset Turnover Outlook: Management's initial target is to improve asset turnover from approximately 1.0x toward 1.1x, with longer-term potential to approach the historical peak of 1.4x as asset utilization improves. • R&D Investments: H1 R&D spending stood at 4.3% of sales. Management continues investing in advanced modalities, ADC technologies and complex manufacturing platforms. • Balance Sheet: Net debt stood at ₹2,466 Cr, with net debt-to-EBITDA improving to approximately 1.02x. Management remains focused on funding growth investments while maintaining manageable leverage. • Q2 Financial Performance: Revenue reached ₹2,206 Cr, EBITDA ₹762 Cr and PAT ₹441 Cr, with improved product mix and operating leverage supporting profitability. • Key Risks: Clinical and regulatory approval timelines, peptide commercialization delays, execution of large capex projects and fluctuations in CDMO customer demand remain key uncertainties

LAURUS LABS LIMITED

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