Pharma Stock Jumps 16% After Receiving ₹825 Cr Multi-Year CDMO Order

Synopsis :- CDMO stock surged 16% after securing a multi-year Rs. 825 crore (USD 91 million) mandate from a leading global pharma company, with supplies expected to commence within 4–5 months.

A small-cap company that is engaged in the business of manufacturing, producing, developing and marketing a wide range of API, branded and generic formulations and also the Home Health products has come into focus after securing a significant new order. 

With the market capitalization of Rs. 2,456.48 crore, the shares of Morepen Laboratories Limited were trading at Rs. 44.83, up by 14.38 percent from its previous day’s close price of Rs. 39.23 per equity share. The stock has touched an intraday high of Rs. 45.40, implying an increase of 15.73 percent from previous day’s close price.

Global CDMO Mandate

Morepen Laboratories Limited has secured a multi-year Contract Development and Manufacturing Organization (CDMO) mandate worth ~Rs. 825 crore (USD 91 million) from a leading global pharmaceutical company. This marks one of the largest single CDMO contracts in the company’s history, strengthening its presence in the high-growth global outsourcing market. Supplies under the agreement are expected to commence within the next 4–5 months, with execution continuing through Q1 of the following financial year, subject to customary operational and regulatory approvals.

Strengthening Manufacturing Capabilities

Backed by over four decades of API manufacturing expertise, Morepen continues to expand its role as a long-term manufacturing partner for global pharma innovators. The company’s internationally accredited facilities, including approvals from USFDA, WHO-GMP, and European regulators, enhance its credibility in regulated markets. With integrated development-to-commercial manufacturing capabilities, Morepen is well-positioned to manage complex scale-ups and multi-year supply programs while evaluating further capacity and technology investments to support its growing CDMO pipeline.

Management View

According to Mr. Sushil Suri, Chairman and Managing Director of Morepen Laboratories, the new mandate marks a significant milestone in strengthening the company’s manufacturing platform and reflects global customers’ trust in its quality standards, regulatory compliance, and execution capabilities. He stated that the company’s consistent investments in infrastructure and compliance have enabled it to participate in larger, long-term global programs. He further added that the CDMO segment is a natural extension of Morepen’s strong API business, helping drive scale, stability, and long-term value creation while reinforcing its core operations.

About the Company & Financial

Morepen Laboratories Ltd. is an integrated pharmaceutical and healthcare company that manufactures APIs, branded generics, medical devices, and consumer wellness products, exporting to over 90 countries. With strong API manufacturing capacity, a 14-million glucometer user base, and growing digital presence, the company combines regulatory approvals from USFDA, WHO, and EU authorities with decades of industry experience to deliver affordable, quality, and innovation-driven healthcare solutions.

A return on equity (ROE) of about 11.8 percent, a return on capital employed (ROCE) of about 15.1 percent and debt to equity ratio at 0.13 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 32.2x higher as compared to its industry P/E 28.2x.  

Morepen Laboratories Limited reported revenue of Rs. 484 crore in Q3FY26, registering a 6.8 percent YoY growth compared to Rs. 453 crore in Q3FY25 and a strong 17.5 percent QoQ increase from Rs. 412 crore in Q2FY26. The steady top-line growth reflects improved business momentum and higher execution during the quarter.

EBITDA stood at Rs. 46 crore in Q3FY26, up 27.8 percent YoY from Rs. 36 crore and 48.4 percent QoQ from Rs. 31 crore. The sharper rise in EBITDA compared to revenue indicates operating leverage and improved cost efficiency during the quarter.

Net profit came in at Rs. 28 crore, marginally up 3.7 percent YoY from Rs. 27 crore but down 31.7 percent QoQ from Rs. 41 crore in Q2FY26. While profitability improved on an annual basis, the sequential decline suggests higher expenses or normalization after a stronger previous quarter.

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