Morepen Laboratories — Why Has the Stock Nearly Doubled?

1. Q1 FY27 results were the biggest trigger Morepen reported its highest-ever quarterly revenue and earnings: Revenue: ₹570 crore, +34% YoY EBITDA: ₹87.7 crore, +207% EBITDA margin: 15.25% vs 6.65% PAT: ₹56.4 crore, +425% API business: +31% Export revenue: +111% This is the most important reason for the rerating. Profit increased much faster than revenue because of better product mix, operating leverage and improved raw-material economics. 🧬 2. ₹825 crore CDMO deal has moved into commercialisation This is arguably the biggest long-term catalyst. Morepen's previously announced ₹825 crore global CDMO mandate entered commercial execution in July 2026. The company had already completed about ₹58 crore of commercial dispatches in Q1. This changes the market perception of Morepen: Earlier: API-focused company ⬇️ Now: API + recurring CDMO manufacturing platform If the programme scales as expected, it can provide much better revenue visibility and asset utilisation. 🏭 3. Capacity expansion completed ahead of schedule On September 7, Morepen announced that the first phase of its manufacturing expansion was completed ahead of schedule. API/CDMO reactor capacity increased from: 535 KL → 614 KL The additional capacity is intended to support the commercial CDMO programme as well as existing API demand and future customer programmes. This announcement itself triggered another move in the stock, with shares rising around 7% to a fresh 52-week high. 🌎 4. Export growth has accelerated Exports increased 111% YoY in Q1, while API exports grew 42%. This is important because Morepen is increasingly targeting global pharmaceutical customers rather than depending only on the domestic API market.