Morepen Lab hits the roof after Q1 PAT surges over five-fold to Rs 56 cr

Morepen Laboratories hits an upper circuit of 20% at Rs 69.18 after the pharmaceutical company reported a stellar set of earnings for the quarter ended 30 June 2026, driven by robust growth across its API, CDMO and medical devices businesses.

The company's consolidated net profit surged 425.05% to Rs 56.39 crore in Q1 FY27 from Rs 10.74 crore in the corresponding quarter last year. Revenue from operations increased 34.07% year-on-year (YoY) to Rs 570.12 crore, marking the company's highest-ever quarterly revenue.

Profit before tax (PBT) jumped 380.46% YoY to Rs 74.52 crore during the quarter.

Operating performance improved sharply, with EBITDA soaring 207% YoY to Rs 87.72 crore. EBITDA margin expanded to 15.25% in Q1 FY27 from 6.65% in the year-ago period, reflecting better operating leverage, an improved product mix and enhanced cost discipline.

Export revenue surged 111% YoY in Q1 FY27.

The company's Active Pharmaceutical Ingredients (API) business registered 31% growth during the quarter, supported by a recovery in its core business, customer prioritisation and improved operational efficiency. API exports rose 42% YoY, indicating stronger demand in international markets and supporting the company's transition towards a higher-value Contract Development and Manufacturing Organisation (CDMO) platform.

Morepen's medical devices business continued to emerge as a key growth driver, recording 19% growth during the quarter.

To capitalise on rising global CDMO opportunities, the company is expanding its manufacturing capacity in phases and has outlined plans to increase capacity to 1,200 KL by FY30.

Looking ahead, Morepen said its immediate focus will remain on scaling commercial CDMO supplies, restoring API profitability and improving capacity utilisation. Over the medium term, the company aims to expand manufacturing capacity, strengthen customer acquisition and benefit from operating leverage, while its long-term strategy is centred on building an innovation-led manufacturing platform backed by global partnerships.c

Sushil Suri, chairman & managing director, Morepen Laboratories, said: ?Q1 FY27 marks an important validation of Morepen?s transformation journey. The company has delivered its highest-ever quarterly revenue, strong profitability improvement and meaningful operating leverage. More importantly, our Rs 825 crore CDMO mandate has now entered full scale commercial execution, reinforcing our shift from a transaction-led API business to a more focused, manufacturingled platform built around long-duration global partnerships.

With API profitability recovering, exports growing strongly and Medical Devices continuing to scale as a second growth engine, Morepen is entering the next phase with greater confidence. Our focus remains on disciplined execution, capacity expansion, customer diversification and building deeper scientific and compliance capabilities to create a stronger, more predictable and globally relevant Morepen.?

Morepen Laboratories is a vertically integrated, innovation-led pharmaceutical and healthcare company delivering highquality APIs, branded generics, medical devices, and consumer wellness products to over 90 countries worldwide.

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