Morepen Labs Q2 FY27: consol PAT +117% YoY to ₹88.9 Cr, CDMO ramp drives margin expansion

Morepen Laboratories' consolidated Q2 FY27 (quarter ended Sep 30, 2026) revenue rose 81.4% YoY and 30.9% QoQ to ₹746.50 Cr, with consolidated PAT (after minority interest) up 117.5% YoY and 57.6% QoQ to ₹88.89 Cr — a record quarter on the CDMO supply ramp under the company's ₹825 Cr mandate. EPS was ₹1.62 consolidated versus ₹0.75 a year ago. Standalone PAT was ₹77.87 Cr on revenue of ₹678.00 Cr, roughly 12-14% below the consolidated numbers, so subsidiaries (the Dubai/US units and domestic arms) added meaningfully to both the top and bottom line this quarter — consolidated is the primary basis here. Margins expanded on both counts: EBITDA margin (computed consistently as EBITDA/revenue across quarters) rose to ~16.5% from ~14.5% in Q1 FY27 and an underlying ~7.5% a year ago once last year's one-off is stripped out, while net margin improved to 11.8% from 9.8% both sequentially and YoY. The improvement tracks the CDMO mix shift and operating leverage as volumes scaled, with no exceptional items distorting this quarter's cost base. The YoY PAT comparison needs a caveat, though: last year's reported ₹40.87 Cr consolidated PAT included a ₹25.83 Cr non-operating exceptional gain tied to loss of control of a subsidiary. Stripping that out, last year's underlying PBT was just ₹19.87 Cr against this quarter's ₹116.54 Cr — adjusted PAT growth of roughly +403% versus the +117% reported figure, meaning the underlying operating improvement is considerably stronger than the headline YoY number suggests, not weaker. Against management's own pre-quarter guidance of ~50% YoY revenue growth (flagged on CDMO supply visibility, ~₹225 Cr incremental supplies), the actual +81% is a clear beat. Against our pre-result preview's revenue expectation of ₹850-900 Cr, however, the actual ₹746.5 Cr came in below range, even as EBITDA margin (~16.5%) landed at or above the previewed 15-16% band — so the quarter beat on growth rate and margin but missed the absolute revenue bar the Street read had set going in. No management press release was available in the record to cross-check framing, and the company has no formal forward guidance on record beyond the pre-quarter CDMO supply commentary addressed above. Two other developments from the quarter tie into the print without moving the P&L: the Himachal Pradesh High Court on Oct 14 quashed a GST show-cause notice, removing a ₹317.37 Cr contingent liability (balance-sheet relief, no income booked); and the company filed its first US ANDA (Sitagliptin tablets) on Sep 28, a pipeline milestone for its US generics ambitions, not yet a revenue driver.