Morepen Laboratories Limited has raised the bar with a second consecutive quarter of record revenue and earnings, as a sharp scale-up in contract development and manufacturing organisation (CDMO) supplies, a stronger business mix and improved operating leverage drive growth.
The pharmaceutical company reported an 81% year-on-year jump in revenue to Rs 755 crore in the second quarter ended September 30, 2026. EBITDA surged 273% to Rs 132 crore, while profit after tax (PAT) rose 117% to Rs 89 crore.
Profitability strengthened sharply, with EBITDA margin expanding by 897 basis points to 17.45% in Q2 FY27, signalling the growing contribution of higher-value business and improved operating efficiency.
CDMO revenue stood at Rs 253 crore during the quarter, accounting for 52% of Morepen's combined active pharmaceutical ingredients (API) and CDMO revenue. The segment's growing contribution is emerging as a key driver of the company's expanding earnings base.
Exports delivered another powerful performance, climbing 131% year on year to Rs 397 crore. The medical devices business also maintained strong momentum, with revenue rising 65% to Rs 208 crore.
The latest results underline Morepen's ability to translate revenue growth into stronger earnings, with EBITDA rising substantially faster than sales.
Morepen sustained its momentum in the first half of FY27, with revenue increasing 57% year on year to Rs 1,330 crore for the six months ended September 30, 2026.
EBITDA jumped 243% to Rs 220 crore, while PAT climbed 177% to Rs 145 crore. The EBITDA margin for the first half stood at 16.50%.
Exports more than doubled, surging 122% to Rs 654 crore and accounting for approximately half of the company's sales revenue. Meanwhile, medical devices revenue grew 39% to Rs 399 crore.
CDMO revenue for the first half stood at Rs 311 crore, while the company's API and CDMO manufacturing capacity totalled 614 kilolitres (KL).
The latest quarterly and half-year numbers point to a significant improvement in Morepen's earnings trajectory, with robust export growth, expanding CDMO supplies and the medical devices business contributing to the performance.
With Q2 revenue hitting a new high and EBITDA margins widening sharply, Morepen has entered a stronger earnings phase. The key test ahead will be its ability to sustain the pace of growth, expand CDMO contribution and preserve profitability as the business scales.
