JAMMU, Oct 30: Morepen Laboratories Limited reported a record-shattering financial performance for the second quarter ended September 30, 2026, driven by a powerful scale-up in its contract development and manufacturing operations (CDMO), surging global exports, and strong momentum across its medical devices business.
The company posted its second consecutive quarter of record revenue and earnings, with sales soaring 81 percent year-over-year to Rs. 755 crore. Profitability expanded at an even faster pace, as EBITDA surged 273 percent to Rs. 132 crore and Profit After Tax (PAT) jumped 117 percent to Rs. 89 crore. EBITDA margins expanded significantly by 897 basis points to reach 17.45 percent for the quarter.
The stellar quarterly performance propelled half-year figures for H1 FY27 to new highs, with total revenue climbing 57 percent to Rs. 1,330 crore, EBITDA surging 243 percent to Rs. 220 crore, and PAT rising 177 percent to Rs. 145 crore. Exports more than doubled during the first half, reaching Rs. 654 crore and accounting for approximately half of the company’s total sales revenue.
Company leadership attributed the structural transformation to the commercialization of large-scale CDMO contracts, a higher-value API product mix, and enhanced operational efficiencies.
“Q2 marks another important step in Morepen’s transformation,” said Sushil Suri, Chairman and Managing Director of Morepen Laboratories Limited. “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.”
The CDMO division emerged as a primary growth engine, generating Rs. 253 crore in Q2 alone—up dramatically from Rs. 58 crore in the first quarter—and accounting for 52 percent of the combined API and CDMO revenue. This was underpinned by the regular commercial execution of Morepen’s previously announced Rs. 825 crore global CDMO mandate. Meanwhile, the company’s traditional API business continued to benefit from global demand, with newer molecules expanding to represent 25 percent of API revenue in H1 FY27 compared to 14 percent a year prior.
The Medical Devices segment also delivered robust chronic-care growth, posting a Q2 revenue of Rs. 208 crore, up 65 percent year-over-year, supported by an installed base of approximately 20 million glucose meters and an annual consumption of roughly 500 million test strips.
To support this rapid business expansion, Morepen has accelerated its manufacturing footprint.
“As we execute CDMO orders in line with customer programmes, the first phase of capacity expansion has been completed at 614 KL, ahead of schedule. Civil work has commenced for the next phase towards 800 KL, targeted for completion by Q2 FY28,” said Sanjay Suri, Managing Director. “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.”
The company’s earnings transformation has translated into stronger capital productivity and financial health. Return on Capital Employed (ROCE) improved to 18.8 percent on a trailing twelve-month basis compared to 9.4 percent in FY26, while Return on Equity (ROE) rose to 13.6 percent from 7.6 percent. Working-capital efficiency also improved sharply as receivable collection days dropped from 66 days to 49 days, leaving the debt-to-equity ratio conservative at 0.23x. During the quarter, Morepen also achieved a key regulatory milestone by submitting its first U.S. ANDA for Sitagliptin Tablets USP, further strengthening its finished-dosage capabilities.