Morepen Laboratories (MOREPENLAB) share price is rising

Morepen Laboratories (MOREPENLAB) share price is rising mainly because the company’s fundamentals have improved sharply: the biggest catalyst is the ₹825 crore multi-year CDMO mandate from a global pharma company, with commercial supplies already started in July 2026; this is strategically important because Morepen is moving toward the higher-margin CDMO business. In Q1 FY27, the company reported its highest-ever quarterly performance, with revenue of about ₹570 crore and PAT of ₹56.4 crore, up 394% YoY, while the CDMO program contributed to the strong improvement in profitability; API growth was also strong. Another positive is the fourth consecutive USFDA inspection with NIL 483 observations, which supports the company’s credibility in regulated export markets, while capacity is being expanded from roughly 500 KL toward 800 KL to support future manufacturing demand. The company also reported strong FY26/Q4 performance, including 22% YoY Q4 revenue growth, 69% PAT growth, 17% API growth and 31% Medical Devices growth, and proposed a 10% dividend for FY26. Therefore, the recent share-price rise appears to be driven by a combination of strong earnings growth + ₹825 crore CDMO visibility + improving margins + USFDA compliance + capacity expansion + expectations of future growth; however, after a sharp price rise, valuation and profit-booking risk should also be considered, and the delayed restructuring/hive-off of the Medical Devices