For the quarter ended September 30, 2026, EBITDA surged 273 per cent to Rs. 132 crore, while Profit After Tax (PAT) rose 117 per cent to Rs. 89 crore. EBITDA margin expanded by 897 basis points to 17.45 per cent, reflecting the company's improved earnings profile.
The performance marks a significant development in Morepen's business transformation, with CDMO supplies gaining commercial traction, exports increasing and its medical devices business continuing to expand.
For the first half of FY27, Morepen reported revenue of Rs. 1,330 crore, up 57 per cent year-on-year. EBITDA increased 243 per cent to Rs. 220 crore, while PAT climbed 177 per cent to Rs. 145 crore. Exports more than doubled to Rs. 654 crore, accounting for approximately half of the company's sales revenue during the six-month period.
The company reported CDMO revenue of Rs. 253 crore in Q2 FY27, while the business contributed 52 per cent of combined API and CDMO revenue. Exports during the quarter stood at Rs. 397 crore, up 131 per cent year-on-year. The medical devices business recorded revenue of Rs. 208 crore, registering growth of 65 per cent.
For H1 FY27, CDMO revenue stood at Rs. 311 crore, exports reached Rs. 654 crore, up 122 per cent, and medical devices revenue increased 39 per cent to Rs. 399 crore. API and CDMO manufacturing capacity reached 614 kilolitres.
Commenting on the performance, Morepen Laboratories Chairman and Managing Director Sushil Suri said Q2 marked another important step in the company's transformation.
“CDMO has moved into meaningful commercial scale, our API portfolio is becoming more global and higher-value, and Medical Devices continues to grow strongly. H1 FY27 EBITDA crossing Rs. 200 Cr gives us a significantly stronger base to invest in capacity, capability and future growth,” he said.
Managing Director Sanjay Suri said the company had completed the first phase of capacity expansion at 614 kilolitres ahead of schedule, while civil work had commenced for the next phase, which aims to increase capacity to 800 kilolitres.
The next phase is targeted for completion by Q2 FY28.
“Alongside scale, we are building capability in high-potency APIs and new technologies, while engaging with global pharmaceutical customers across additional CDMO development and manufacturing opportunities,” Sanjay Suri added.
Morepen's earnings profile is undergoing a structural shift as its CDMO business scales up, its API portfolio moves towards newer and higher-value products, and its revenue base becomes increasingly global. The company said these developments are translating into a higher EBITDA base, stronger margins and greater capacity to reinvest in growth.
The improvement is also reflected in capital productivity and working-capital efficiency. Return on Capital Employed (ROCE) stood at 18.8 per cent on a trailing 12-month basis, compared with 9.4 per cent in FY26. Return on Equity (ROE) increased to 13.6 per cent from 7.6 per cent in FY26.
Receivable days declined to 49 from 66 days, while the debt-to-equity ratio remained modest at 0.23x, supporting higher working-capital requirements and capacity expansion.
The company's CDMO business has moved beyond validation and initial commercial supplies into meaningful commercial scale. Execution of Morepen's previously announced Rs. 825 crore global CDMO mandate has entered regular commercial supply, materially increasing the business's contribution within its pharmaceutical operations.
CDMO revenue in Q2 FY27 stood at Rs. 253 crore, compared with Rs. 58 crore in Q1 FY27. Revenue for the first half reached Rs. 311 crore, with CDMO accounting for 52 per cent of combined API and CDMO revenue in the second quarter.
The API business continues to provide the scientific and manufacturing foundation for Morepen's pharmaceutical operations, supported by established positions in key active pharmaceutical ingredients and long-standing global customer relationships.
The company is progressively shifting its portfolio towards newer molecules, export markets and higher-value opportunities. Exports account for approximately 76 per cent of traditional API revenue, while the contribution of newer molecules increased from 14 per cent of API revenue in H1 FY26 to 25 per cent in H1 FY27.
Morepen's medical devices business has developed into a chronic-care franchise focused on blood glucose and blood-pressure monitoring. The business is supported by a large installed base, recurring consumables, nationwide distribution and service, and increasing backward integration.
The company reported approximately 20 million glucose meters in its installed base, with annual strip volumes of approximately 500 million. Medical devices revenue increased to Rs. 208 crore in Q2 FY27 and Rs. 399 crore in H1 FY27.
Alongside the expansion of its manufacturing operations, Morepen is strengthening its development and regulatory capabilities to support growing API and CDMO requirements.
During the quarter, API and CDMO capacity increased from approximately 535 kilolitres to 614 kilolitres. The next phase of expansion towards 800 kilolitres is targeted for completion by Q2 FY28.
Morepen also submitted its first US Abbreviated New Drug Application (ANDA) for Sitagliptin Tablets USP during the quarter, strengthening its finished-dosage development and regulatory capabilities.
The company said the next phase of capacity expansion is being undertaken alongside customer programmes and increasing business visibility.
Morepen Laboratories Limited is an Indian pharmaceutical and healthcare company with over four decades of experience across APIs, regulated manufacturing, CDMO and healthcare products. It serves customers across more than 90 countries and is developing a higher-value pharmaceutical platform around its established API business, growing CDMO operations and long-standing global customer relationships.
Alongside pharmaceuticals, the company operates a medical devices business focused on blood glucose and blood-pressure monitoring, supported by a large installed base, recurring consumables, backward-integrated manufacturing and nationwide distribution and service.
The company noted that its forward-looking statements are based on current expectations, assumptions and estimates relating to its business strategy, growth plans, manufacturing expansion, CDMO opportunities, regulatory activities and market opportunities. Actual results may differ materially due to risks and uncertainties beyond its control.
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