01 — Opening Hook
The Glucometer King With a CDMO Wildcard
Imagine a company that sells blood glucose strips to diabetics across India, suddenly announces a ₹825 crore (₹91 million USD) international contract manufacturing deal in February. Your first thought? Either they’re manufacturing pills for everyone’s secret stash, or this is genuine work from a global pharma customer who finally realized Indian CDMOs aren’t just cheap—they can actually execute. Morepen just proved it’s the latter. Q3 FY26 saw profit jump 77% YoY, revenue grow 13%, and the stock barely budged. Because the market still doesn’t trust a company that burned two years building reputation in glucometers but suddenly says, “Oh, by the way, we make active ingredients too.” Read on. This gets interesting.
What You’re About to Read: A company that’s either poised for exponential CDMO-led growth, or stuck in the middle of two businesses fighting for attention. The data will tell you which one.
02 — At a Glance
The Numbers Play: Q3 Profit Shock Edition
- Q3 Revenue₹462 Cr+13% YoY. 9-month growth at 4%. Quarterly beats 9M average—lumpiness or gunshot start?
- Q3 EBITDA₹46 Cr+41% YoY. Margin 10%. Finally, some backbone in profitability.
- Q3 PAT₹23 Cr+77% YoY. Exceptional income of ₹1.1 Cr helped. Strip that, still +73%. Real jump.
- EPS (Q3)₹0.50TTM ₹1.82. Stock at ₹37, P/E 26.5x. Pricey for 10.2% ROE.
- Medical Devices Revenue₹177 Cr (+44% YoY)Glucometers on fire. BP monitors steady. This is the cash cow.
- Pharma API Revenue₹249 Cr (+1% YoY)Flat growth. Legacy API prices collapsing. Chinese competitors playing ping-pong with margins.
The Brutal Truth: Medical devices roaring, pharma APIs suffocating on price wars, but CDMO deal promises salvation in 4–5 months. Timing? Convenient. Credibility? Watch execution.
03 — Management’s Key Commentary
What They Said (And What It Actually Means)
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