Morepen Laboratories Posts Explosive Profit Growth on Surging Revenue
The pharmaceutical company's Q1 FY27 profit jumped nearly fourfold year-on-year, with revenue growth of 34% and a sharp expansion in net profit margin.
Morepen Laboratories reported a stellar Q1 FY27, with profit surging 393.9% year-on-year to ₹56.35 crore. Revenue grew 34.1%, driving a significant improvement in net profit margin.
Morepen Laboratories kicked off FY27 with a powerful quarter, delivering explosive profit growth on the back of strong revenue momentum. The pharmaceutical company's profit after tax surged nearly fourfold compared to the same period last year, far outpacing a solid 34% rise in sales.
The latest quarter shows a decisive recovery from a softer Q4. Revenue climbed to ₹570.13 crore, up 17.6% sequentially, while profit jumped 258% from the previous quarter. This performance marks a return to the higher profitability levels seen in Q2 FY26, with the net profit margin expanding to 9.9% from just 2.7% a year ago.
Quarterly Performance (₹ crore)
Revenue
Profit
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue | 570.13YoY +34% | 484.72 | 425.24 |
| Profit | 56.35YoY +394% | 15.74 | 11.41 |
| Net Profit Margin | 9.9%YoY +267% | 3.2% | 2.7% |
Key Points
- The trailing-twelve-month (TTM) net profit margin stands at 7.2%, indicating the Q1 performance is a strong step up from the recent average.
- The company maintains a robust balance sheet, with a very low debt-to-equity ratio of 0.07 and a healthy interest coverage ratio of nearly 20 times.
- Over the past year, the stock price has risen 36.1%, broadly in line with the stellar earnings growth reported for the quarter.
Despite the sharp earnings rebound, the stock trades at a P/E of 22.2, a significant discount to the industry average of 37.2. The coming quarters will reveal if this strong profit trajectory can be sustained.
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· MOREPENLAB
(BSE)
ISIN: INE083A01026
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