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I don't think there's enough information here to solve your problem.
For example, if your Lambda function is interacting with a back-end database then it's possible that under load that database is responding slower and that is causing an increase in Lambda function time and latency.
But without a detailed analysis of the code and what it is doing it's complete guess work.
If it were me, I'd be using X-Ray, instrumenting the code and then analysing where the additional latency is coming from when the function is under load.
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