Morepen Laboratories LimitedQ2 FY27 Results & Financial Update
Morepen Laboratories Limited: Q2 FY27 consolidated results and company financials – revenue ₹746.50 Cr, PAT ₹88.89 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Chart · Market context
Morepen Laboratories price & chart
Quarter overview
Quarterly earnings analysis
Morepen Laboratories reported its second consecutive quarter of record revenue and earnings for the quarter ended September 30, 2026 (Q2 FY27), driven by commercial CDMO scale-up, an improved business mix, and higher operating leverage.
Sales revenue grew by 81 per cent year-on-year to Rs. 755 crore, accompanied by a 273 per cent surge in EBITDA to Rs. 132 crore and a 117 per cent increase in Profit After Tax (PAT) to Rs. 89 crore.
Profitability expansion outpaced top-line growth due to favorable operational leverage and a structural shift in the product mix toward higher-value CDMO supplies and newer chemical entities.
EBITDA margin expanded by 897 basis points year-on-year to 17.45 per cent during the quarter, reflecting improved operating economics and higher-margin product contributions.
For the first half ended September 30, 2026 (H1 FY27), cumulative revenue reached Rs. 1,330 crore, representing a 57 per cent increase over the corresponding period of the previous year.
H1 FY27 EBITDA rose by 243 per cent to Rs. 220 crore, while cumulative PAT reached Rs. 145 crore, up 177 per cent year-on-year.
Export performance served as a primary catalyst, with export revenue more than doubling to Rs. 654 crore in H1 FY27 and accounting for approximately half of total sales revenue.
Capital productivity metrics showed significant structural improvement, with trailing twelve months (TTM) Return on Capital Employed (ROCE) advancing to 18.8 per cent from 9.4 per cent in FY26, and TTM Return on Equity (ROE) reaching 13.6 per cent compared to 7.6 per cent in FY26.
01 · Business model
What does Morepen Laboratories do?
Morepen Laboratories Limited is an Indian pharmaceutical and healthcare enterprise with more than four decades of operating experience spanning active pharmaceutical ingredients (APIs), contract development and manufacturing operations (CDMO), medical devices, and formulation products.
The company serves customers across more than 90 countries, leveraging its scientific and manufacturing foundations in regulated and emerging markets.
Its operational footprint includes manufacturing infrastructure located in Himachal Pradesh, supported by backward integration and established global customer relationships.
Morepen operates around distinct revenue engines, balancing traditional and newer-molecule APIs with a rapidly scaling global CDMO mandate and a chronic-care medical devices franchise.
02 · Historical context
What shaped the business before this quarter
In February 2026, Morepen secured a Rs. 825 crore global CDMO mandate, which subsequently transitioned from validation to regular commercial supply.
Trailing twelve-month ROCE improved from 9.4 per cent in FY26 to 18.8 per cent in H1 FY27, while receivable days compressed from 66 days in FY26 to 49 days.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q2 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹746.50 Cr | ₹411.58 Cr | ₹570.13 Cr |
| Total income | ₹755.19 Cr | ₹416.21 Cr | ₹575.31 Cr |
| Profit before tax | ₹116.54 Cr | ₹45.69 Cr | ₹74.53 Cr |
| Profit after tax | ₹88.89 Cr | ₹41.04 Cr | ₹56.35 Cr |
| EPS | ₹1.62 | ₹0.75 | ₹1.03 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
CDMO revenue reached Rs. 253 crore in Q2 FY27, scaling up 4.3x sequentially from Rs. 58 crore in Q1 FY27 and accounting for 52 per cent of combined API and CDMO revenue.
Medical devices revenue grew by 65 per cent year-on-year in Q2 FY27 to Rs. 208 crore, supported by strong performance in blood glucose and blood pressure monitoring products.
Export revenue grew by 131 per cent year-on-year during Q2 FY27, following a 111 per cent year-on-year increase in Q1 FY27, pushing H1 export revenue to Rs. 654 crore.
The contribution of newer molecules within the API portfolio expanded from 14 per cent of API revenue in H1 FY26 to 25 per cent in H1 FY27.
What drove margins
EBITDA margin expanded by 897 basis points year-on-year to 17.45 per cent in Q2 FY27, aided by the transition from lower-margin traditional mixes to higher-value CDMO supplies and specialized APIs.
Higher facility throughput and increased batch sizes across expanded manufacturing capacity delivered improved operating leverage, translating into higher earnings relative to revenue growth.
05 · Demand, customers & order book
Where demand is coming from
The company executed regular commercial supplies under its previously announced Rs. 825 crore global CDMO mandate, engaging with global pharmaceutical customers across long-duration programs.
The chronic-care franchise maintained an installed base of approximately 20 million glucose meters and generated annual strip volumes of approximately 500 million strips.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
CDMO revenue hit Rs. 253 crore in Q2, representing 52 per cent of total API and CDMO revenue, while traditional API exports maintained steady contribution at approximately 76 per cent of traditional API revenue.
H1 FY27 medical devices revenue reached Rs. 399 crore, representing a 39 per cent year-on-year increase, driven by a nationwide distribution and service network.
Geography and market mix
Export revenue grew by 131 per cent YoY in Q2 FY27 and 122 per cent YoY in H1 FY27 to reach Rs. 654 crore, raising export contribution to 50 per cent of total sales revenue compared to 35 per cent in H1 FY26.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Aggregate API and CDMO manufacturing capacity increased from approximately 535 KL to 614 KL following the completion of the first expansion phase ahead of schedule.
Projects, capex and execution
Civil work commenced for the next phase of manufacturing expansion aimed at increasing capacity toward 800 KL, with target completion scheduled by Q2 FY28.
08 · Strategy & new businesses
How the company is trying to change its growth mix
The company is building technological capabilities in high-potency APIs and establishing an innovation hub to support new product development and wider customer engagement.
09 · Reported developments
What changed operationally
Delivered its second consecutive quarter of record revenue and earnings, with H1 FY27 EBITDA crossing Rs. 200 crore to reach Rs. 220 crore.
Submitted its first U.S. ANDA for Sitagliptin Tablets USP during the quarter, reinforcing finished-dosage development and regulatory capabilities in regulated markets.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Receivable days were reduced significantly to 49 days from 66 days in FY26, reflecting tighter collections alongside scaling revenue.
Capital allocation & funding
Debt-to-equity ratio stood at a modest 0.23x as of Q2 FY27, compared to 0.17x in FY26, providing financial headroom to support working capital requirements and ongoing capacity expansion.
11 · Beyond the numbers
What changed beyond the numbers
Environmental and Sustainability Initiatives
The company incorporated environmental standards including Zero Liquid Discharge (ZLD) systems and solar power installations across its manufacturing infrastructure to meet customer compliance requirements.
12 · Previous-quarter changes
What changed since the previous quarter
CDMO revenue expanded from Rs. 58 crore in Q1 FY27 to Rs. 253 crore in Q2 FY27, reflecting rapid commercial scale-up.
13 · Key Q&A
The quarter, answered directly
What does Morepen Laboratories do?
Morepen Laboratories Limited is an Indian pharmaceutical and healthcare enterprise with more than four decades of operating experience spanning active pharmaceutical ingredients (APIs), contract development and manufacturing operations (CDMO), medical devices, and formulation products.
What is the clearest takeaway from Q2 FY27?
Morepen Laboratories reported its second consecutive quarter of record revenue and earnings for the quarter ended September 30, 2026 (Q2 FY27), driven by commercial CDMO scale-up, an improved business mix, and higher operating leverage.
What drove revenue or demand?
CDMO revenue reached Rs. 253 crore in Q2 FY27, scaling up 4.3x sequentially from Rs. 58 crore in Q1 FY27 and accounting for 52 per cent of combined API and CDMO revenue.
What mattered most for margins or profitability?
EBITDA margin expanded by 897 basis points year-on-year to 17.45 per cent in Q2 FY27, aided by the transition from lower-margin traditional mixes to higher-value CDMO supplies and specialized APIs.
What changed operationally beyond the headline numbers?
Aggregate API and CDMO manufacturing capacity increased from approximately 535 KL to 614 KL following the completion of the first expansion phase ahead of schedule.
What should the next disclosure help confirm?
Regulatory review updates regarding the first U.S. ANDA filing for Sitagliptin Tablets USP.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Regulatory Approvals: Regulatory review updates regarding the first U.S. ANDA filing for Sitagliptin Tablets USP.
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