Morepen Laboratories shares touched a 52-week high of ₹122.14 on Monday after completing the first phase of its manufacturing expansion ahead of schedule. The company increased its reactor capacity to 614 KL to support a large ₹825 crore CDMO mandate, signaling strong operational momentum.
Morepen Laboratories shares climbed to a 52-week high of ₹122.14 on the National Stock Exchange on September 7, 2026, recording a gain of approximately 7% during the session. This price movement followed the company’s official announcement to the stock exchanges regarding the early completion of the first phase of its manufacturing capacity expansion.
Expanding Capacity for CDMO Growth
The company has successfully increased its installed reactor capacity for its Active Pharmaceutical Ingredients (API) and Contract Development and Manufacturing Organization (CDMO) segments from 535 KL to 614 KL. This upgrade was finalized earlier than the projected timeline. The management noted that this additional infrastructure is critical to scaling up operations for its commercial CDMO business, which has been a recent driver of growth.
The capacity expansion is specifically aimed at fulfilling a large-scale ₹825 crore CDMO mandate. The company reported that this project began contributing to revenue during the first quarter of fiscal year 2027, with ₹58 crore in commercial dispatches recorded during that period. By securing this manufacturing space, the company intends to meet the rising demand from its existing client base.
Financial Performance and Operational Leverage
The stock’s recent performance aligns with a period of strong financial results for the company. In the first quarter of fiscal year 2027, Morepen Laboratories reported a significant turnaround, with profit after tax rising 394% year-on-year to ₹56.35 crore. Revenue for the same quarter stood at ₹575.31 crore, marking a 34% increase compared to the previous year.
Operating metrics also showed improvement, with EBITDA growing 207% year-on-year to ₹87.72 crore. The company’s EBITDA margin expanded to 15.25%, reflecting better operating leverage as the company scaled its production. These financial improvements, combined with the successful capacity rollout, have been key factors in investor sentiment.
Monitorables and Risks
While the expansion supports the company’s growth strategy, investors may keep an eye on several factors going forward. The company’s revenue growth remains heavily linked to the execution of its large CDMO mandate. Any delays in customer schedules or shifts in demand for these specific products could impact future performance.
Additionally, the company has planned further expansion phases to reach a target capacity of 1,000 KL. Investors may track the execution of these future phases, as they will require sustained capital spending and efficient project management. As with many small-cap pharmaceutical firms, the stock price may experience volatility, and the company’s ability to maintain its margin expansion in the face of evolving sector demand remains an important point to monitor in upcoming quarters.