Morepen Laboratories shares surged 7.4% to a fresh 52-week high of ₹122.14 on the National Stock Exchange (NSE) following the announcement of successful completion of its manufacturing capacity expansion program. The stock has been in an uptrend for three out of the last four trading sessions, rising 17% during this period. As of 12:15 PM, the stock was trading at ₹120.32, up 5.79%, with a combined 15.85 million shares changing hands on NSE and BSE combined. The gains come on the back of a positive business development involving the first phase of its manufacturing capacity expansion program, which was finished ahead of the previously indicated timeline.
Morepen Laboratories has successfully completed the first phase of its manufacturing capacity expansion program ahead of its previously indicated time, marking a significant operational milestone. Under the first phase, the company's installed reactor capacity for API and CDMO has increased from 535 KL to 614 KL, providing enhanced manufacturing capabilities. This capacity enhancement strengthens the company's readiness for ongoing scale up of commercial CDMO supplies, while also supporting existing API business and future customer programs. The successful completion of this expansion phase positions Morepen to better serve its growing customer base and support its strategic focus on innovation-led manufacturing.
The latest quarterly results demonstrate continued exceptional performance with net profit surging 394% year-on-year to ₹563 million for Q1FY27, compared with ₹114 million in the same quarter last year. Net sales rose 34.1% to ₹5,701 million during the period as against ₹4,252 million in April-June 2025. The company's revenue increased by 34% YoY to ₹575.31 crore, up from ₹429.64 crore in the June quarter of the previous fiscal year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 207% YoY to ₹87.72 crore, while EBITDA margin stood at 15.25%, showing an improvement of 6.65% in the quarter under review. The management attributed the strong performance to better operating leverage, improved performance on the active pharmaceutical ingredient (API) front, strong export growth and full-scale commercialization of the contract development and manufacturing organization (CDMO) mandate.
Morepen Laboratories' share price has zoomed 192% so far in 2026 and 50% in the last month alone, significantly outperforming the BSE HEALTHCARE index which gained 16.6% during the same period. The stock is currently trading at ₹120.32, up 5.79% in today's session, while the BSE HEALTHCARE index stands at 51,062.9, down 0.4%. The pharmaceutical company's price-to-earnings ratio based on rolling 12-month earnings stands at 42.5, reflecting strong investor confidence in its growth trajectory. The stock has zoomed 112% in the past six weeks after reporting strong earnings for the June 2026 quarter (Q1FY27), with the current price representing its highest level since 2000, having previously hit a record high of ₹234 on March 30, 2000. The stock trades significantly below its all-time high of ₹234, touched in March 2000.
The first quarter marked a major strategic milestone with the ₹825 crore CDMO mandate entering full scale commercialization phase, as reported by Business Standard. The company completed ₹58 crore worth of commercial CDMO dispatches during the quarter, marking the commercial validation of its Morepen 2.0 strategy. This strategy focuses on moving from traditional commodity APIs toward innovation-led manufacturing, long-duration CDMO partnerships, recurring customer programs and a scalable operating platform. The capacity enhancement strengthens the company's readiness for ongoing scale up of commercial CDMO supplies, while also supporting existing API business and future customer programs. The management noted that 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.
For the financial year ended March 31, 2026, standalone revenue growth of 8.39% was delivered, while consolidated revenues remained broadly stable. The Medical Devices segment delivered strong year-on-year growth of 20.13%, with revenues increasing to ₹59,698.01 Lakhs from ₹49,692.61 Lakhs. The segment achieved a five-year CAGR of 9.26%. Product categories showed robust performance with Blood Glucose Monitoring revenues of ₹45,924.04 Lakhs (18.73% YoY growth), Blood Pressure Monitoring at ₹10,491.50 Lakhs (15.57% YoY growth), Nebulisers at ₹1,733.36 Lakhs (300.16% YoY growth), and Thermometers at ₹790.45 Lakhs (37.56% YoY growth). The Finished Formulations business reported revenue of ₹16,678.57 Lakhs compared with ₹17,748.07 Lakhs in the previous year, while the Contract Manufacturing business grew 32.33% to ₹8,488.63 Lakhs from ₹6,414.63 Lakhs. Export revenues increased 13.01% to ₹80,268.87 Lakhs from ₹71,027.89 Lakhs.
