Morepen Laboratories Limited – Investor Presentation Summary

Key Operational Highlights

  • 40+ years of API manufacturing execution with export presence across 90+ countries
  • ~500MT manufacturing and delivery scale with over 70% export business and over 80% repeat customers
  • Installed base of ~17Mn users for medical devices with extensive Pan-India distribution network
  • 4th consecutive USFDA inspection with NIL 483 observations across USFDA & EU-approved facilities
  • Key drivers: Long-duration supply programs, capacity expansion, and operating leverage benefits

Segment-wise Performance

  • API Business: Q4 growth of 17% YoY
  • Medical Devices Business: Q4 growth of 31% YoY
  • Explanation: Devices business demonstrated strong growth momentum throughout FY26 while API pricing environment remained volatile across select categories

Financial Highlights

  • Revenue: ₹472 Cr (Q4 FY26, up 22% YoY); ₹597 Cr (FY26, up 8% YoY)
  • EBITDA: Current range of 10-11%, with path toward 20%+ EBITDA profile
  • YoY/QoQ comparison: Q4 revenue growth of 22% YoY; FY26 growth of 8%
  • Drivers: Export momentum, devices expansion, and manufacturing scale-up
  • Key Risks: API pricing volatility, strategic investments impacting near-term profitability

Geographical Revenue Split

  • Export: Over 70% of business (primary focus)
  • Domestic: Remainder of business
  • Regional Breakdown: Export presence across 90+ countries with established regulated-market relationships

Balance Sheet Snapshot

  • Financial Health Insights: Manufacturing scale-up and strategic investments impacted near-term profitability but support long-term operating leverage

Capex & Cash Flow Health

  • Capital Expenditure: Capacity expansion ongoing
  • Investment Rationale: Focus on capacity expansion for large customer engagements and ready capacity for onboarding new customers

Strategic & R&D Initiatives

  • Investments in Innovation: Process development and scale-up capabilities, specialty portfolio development for select clients
  • Strategic Rationale: Expanding into long-duration manufacturing partnerships, improving product mix, and strengthening global partnerships
  • Expected impact: Commercial production commenced under multi-year mandate (₹823 crore) with phased delivery starting in next few weeks

Industry Trends & Business Environment

  • Macro/Industry Trends: Consumer health tailwinds, home diagnostics adoption, preventive healthcare expansion
  • Impact on Company: Supporting growth in medical devices platform and chronic care ecosystem

Management Commentary & Growth Outlook

  • Strategic Outlook: "FY26 marked an important transition year as Morepen strengthened long-duration manufacturing partnerships, expanded capacities, and progressed toward a more scalable operating model."
  • Growth Outlook: Targeting improved EBITDA profile moving from ~11% to 20%+ through better mix and operating leverage
  • Risks: Volatile API pricing environment across select categories during FY26

Additional Business Updates

  • Medical Devices Strategic Focus: Blood glucose monitoring, blood pressure monitoring, continuous glucose monitoring (CGM), connected health & digital integration, and expanding international market presence
  • Distribution Expansion: Tier 2/Tier 3 penetration, pharmacy network expansion, retail and e-commerce reach
  • Business Evolution: Transitioning from transaction-led API sales to long-duration customer programs with stable recurring revenues