Morepen Laboratories Ltd. delivered exceptional financial results for the first quarter of financial year 2027, with consolidated net profit rising 425.05% compared to the same period in the previous year. The company's net profit increased to ₹56.39 crore in Q1 FY2027, more than four times the ₹10.74 crore posted a year ago. This dramatic improvement in profitability has significantly boosted investor confidence in the pharmaceutical company, with the company citing stronger API demand, sharp pick-up in exports and the transition of its flagship CDMO mandate into commercial production as key drivers of this multifold growth.
The company demonstrated robust operational performance with revenue from operations increasing 34.07% to ₹570.12 crore in the quarter ended June 2026, compared to the previous year. Morepen Labs reported that profit before tax (PBT) jumped 380.46% YoY to ₹74.52 crore during the quarter. The company's EBITDA soared 207% YoY to ₹87.72 crore with EBITDA margin expanding to 15.25% in Q1 FY2027 from 6.65% in the corresponding quarter last year, reflecting better operating leverage, an improved product mix and enhanced cost discipline. The company's export revenue more than doubled, rising 111% year-on-year, with API business recording 31% growth supported by improving product mix and stronger demand from overseas customers.
The quarter marked a major strategic milestone as the previously announced ₹825 crore CDMO mandate entered full-scale commercialisation phase, with commercial supplies worth ₹58 crore already dispatched during the quarter. Management described this milestone as a key step in shifting Morepen from a transaction-led API manufacturer to a long-term manufacturing partner for global pharmaceutical companies. The positive financial results triggered an immediate and strong market reaction, with stock prices surging 20% to hit the upper circuit and a new 52-week high of ₹69.18 on the National Stock Exchange. Chairman and Managing Director Sushil Suri described Q1 FY27 as marking "an important validation of Morepen's transformation journey" and highlighted the company's delivery of its highest-ever quarterly revenue and strong profitability improvement.
The company's operating profit margin (OPM) improved to 15.25% in Q1 FY2027, compared to 6.65% in the corresponding quarter of the previous year. This significant improvement in operational efficiency has contributed to the dramatic increase in net profit. The company's EBITDA surged 207% to ₹87.72 crore with EBITDA margin standing at 15.25%, showing an improvement of 6.65% in the quarter. The improved operational performance was supported by better operating leverage and enhanced performance across key business segments, with the company completing its fourth consecutive USFDA inspection without any Form 483 observations, strengthening its regulatory track record. Morepen Labs shares zoomed 20% to hit the upper circuit, marking the third straight session of gains with the stock surging 23% during this period.
Looking ahead, Chairman and Managing Director Sushil Suri outlined the company's focus on expanding manufacturing capacity to 1,200 KL by FY30 to support future CDMO opportunities. The company has outlined a four-phase capacity augmentation roadmap to meet global demand, increasing manufacturing capacity from 535 kiloliters in Q4FY26. Additionally, the Board approved the re-appointment of Sushil Suri as Chairman & Managing Director for a further three-year term effective from October 20, 2026, to October 19, 2029, subject to shareholder approval at the 41st AGM scheduled for September 26, 2026. The company also set a record date of September 19, 2026 for determining eligibility for the final dividend for the financial year ended March 31, 2026, and sought approval for extending the hive-off of its Medical Devices Business into Morepen Medipath Limited on a slump sale basis.
