• CDMO order execution: Morepen Labs commenced commercial supplies ahead of schedule for its ₹825 crore CDMO order, delivering ₹50 crore in Q1 and targeting ₹200 to ₹225 crore in Q2. Management expects to complete the entire mandate well before the allotted 15-month timeline.
• Capacity expansion timeline: Active capacity is expanding from 500-plus kiloliters (KL) to 600 KL by the end of Q2, with plans to reach 800 KL by Q1 FY27 and 1,000 KL within FY27. Initial CDMO supplies were fulfilled using existing capacity via pipeline adjustments.
• Margin outlook: While traditional API EBITDA margins have historically ranged between 8% and 10%, higher-margin CDMO business is expected to lift full-year blended margins to the mid-to-high teens.
• Revenue and business mix: Over the next two years, CDMO is targeted to expand to 50% to 60% of the parent company's business, with APIs making up 40% to 45%. The long-term FY30 revenue goal of ₹5,000 crore remains on track, while medical devices will continue to be housed separately.