Penny Stock Below Rs 100 Hits 20% Upper Circuit After Reporting Record Q1 FY27 Performance; PAT Surges 394% YoY

On Tuesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 159.40 points, or 0.64 per cent, to 24,614.90. Amid the weak market sentiment, Morepen Laboratories share price hit the 20 per cent Upper Circuit at Rs 69.18 after the company reported its highest-ever quarterly revenue and earnings for the quarter ended June 30, 2026.

Morepen Laboratories Q1 FY27 Performance

The company reported revenue of Rs 575.31 crore in Q1 FY27, registering a 34 per cent YoY growth.

EBITDA surged 207 per cent YoY to Rs 87.72 crore, while the EBITDA margin improved significantly to 15.25 per cent from 6.65 per cent in Q1 FY26. Profit after Tax (PAT) jumped 394 per cent YoY to Rs 56.35 crore, resulting in a sharp improvement in profitability during the quarter.

CDMO Business Enters Commercialisation Phase

The company said its previously announced Rs 825 crore CDMO mandate has entered the full-scale commercialisation phase, with commercial dispatches worth Rs 58 crore already completed during Q1 FY27.

According to the company, this marks a major milestone in its transformation strategy as it shifts from a traditional API business towards innovation-led manufacturing, long-term CDMO partnerships and recurring customer programmes.

Business Highlights

Morepen's API business recorded 31 per cent growth, while API exports increased 42 per cent year-on-year. Overall export revenue surged 111 per cent, supported by stronger demand in international markets.

The company's Medical Devices business also continued its growth momentum, reporting 19 per cent growth during the quarter. Morepen further highlighted that it has successfully completed four consecutive USFDA inspections with Nil Form 483 observations, strengthening its regulatory credentials and supporting future global CDMO partnerships. The company is also expanding its manufacturing capacity, with plans to increase capacity to 1,200 KL by FY30.
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Management Commentary

Commenting on the performance, Sushil Suri, Chairman and Managing Director, said Q1 FY27 marks an important validation of Morepen's transformation journey, with the company delivering its highest-ever quarterly revenue and strong profitability improvement. He added that the Rs 825 crore CDMO mandate has now entered full-scale commercial execution, reinforcing the company's transition towards a manufacturing-led platform built around long-duration global partnerships.

He further said that with API profitability recovering, exports growing strongly and the Medical Devices business continuing to scale, the company remains focused on disciplined execution, capacity expansion, customer diversification and strengthening its scientific and compliance capabilities.

About Morepen Laboratories

Morepen Laboratories Ltd is a vertically integrated pharmaceutical and healthcare company with over four decades of API manufacturing experience. The company exports to more than 90 countries and is expanding beyond its traditional API business into an innovation-led CDMO platform. It also has a growing medical devices business focused on blood glucose monitoring, blood pressure monitoring and other chronic-care healthcare products.

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Disclaimer: The article is for informational purposes only and not investment advice.