Morepen Laboratories has scheduled its 41st Annual General Meeting (AGM) for Saturday, September 26, 2026. The company released the web-link to its FY26 annual report on September 2, 2026, alongside details for remote e-voting and the proposed final dividend.

The meeting will address significant corporate governance changes, including the elevation of Mr. Sanjay Suri from Whole-Time Director to Managing Director and the reappointment of Mr. Sushil Suri as Chairman & Managing Director.

Financial Performance Overview

For the financial year ended March 31, 2026, Morepen Laboratories delivered standalone revenue growth of 8.39%, while consolidated revenues remained broadly stable. Dr. Morepen Limited ceased to be a subsidiary effective July 31, 2025, affecting the comparability of consolidated results with the previous year.

The following table summarises key financial highlights (₹ in Lakhs, except EPS):

On a consolidated basis, total income stood at ₹182,700.56 Lakhs compared with ₹182,993.95 Lakhs in the previous year. Consolidated operating surplus moderated to ₹14,694.30 Lakhs from ₹19,243.40 Lakhs, primarily due to margin pressure in select API categories, higher operating and finance costs, and lower contribution from Dr. Morepen Limited following its deconsolidation.

Export revenues increased 13.01% to ₹80,268.87 Lakhs from ₹71,027.89 Lakhs. Domestic revenues stood at ₹99,844.20 Lakhs compared with ₹109,345.59 Lakhs in the previous year, reflecting business realignment and changes in consolidated structure.

Business-wise Performance

API Business

The API segment remained the largest revenue contributor, reporting consolidated revenues of ₹98,273.23 Lakhs compared with ₹98,919.10 Lakhs in the previous year. On a standalone basis, API revenues were ₹94,452.45 Lakhs, accounting for 56.33% of standalone revenue. Europe's contribution to API exports increased to 44.43% from 31.09% in the previous year. The USA's share declined to 17.65% from 21.78%.

New molecules — Edoxaban, Linagliptin, Saxagliptin and Vonoprazan — contributed ₹5,637.24 Lakhs, up from ₹2,554.80 Lakhs, representing growth of 121%. Bempedoic Acid, added to the portfolio during the year, generated revenue of ₹1,668.88 Lakhs.

Medical Devices Business

The Medical Devices segment delivered strong year-on-year growth of 20.13%, with revenues increasing to ₹59,698.01 Lakhs from ₹49,692.61 Lakhs. The segment achieved a five-year CAGR of 9.26%.

Finished Formulations

The Finished Formulations business reported revenue of ₹16,678.57 Lakhs compared with ₹17,748.07 Lakhs in the previous year. The Branded Formulation business recorded revenues of ₹5,449.84 Lakhs, up 5.46% from ₹5,167.84 Lakhs. The Contract Manufacturing business grew 32.33% to ₹8,488.63 Lakhs from ₹6,414.63 Lakhs.

CDMO Strategy and Landmark Contract

Morepen Laboratories secured a multi-year CDMO mandate valued at approximately ₹825 crore (USD 91 million) from a leading global pharmaceutical company. In the first three months of FY27, the company completed its first commercial dispatch of approximately ₹58 crore against this order. The CDMO programme is positioned as a natural extension of the company's API heritage, enabling long-duration manufacturing partnerships.

Dividend and Reserves

The Board recommended a final dividend of ₹0.20 per equity share of face value ₹2 each for FY26, subject to member approval at the 41st AGM. The dividend payout ratio for the year is 16.44%. The record date is Saturday, September 19, 2026. Standalone net profit after tax of ₹6,605.75 Lakhs has been carried forward to retained earnings.

Key Cost Metrics

Material cost as a percentage of total income improved by 186 basis points to 61.49%. Employee cost increased 11.40% to ₹23,273.94 Lakhs, driven by periodic wage revisions, capability-building initiatives, and strategic hiring.

R&D and Regulatory Progress

During the year, the company filed four USDMFs — Vortioxetine HBr Route II, Rupatadine Fumarate, Sitagliptin Phosphate Monohydrate and Bempedoic Acid — along with two CEP applications, two CADIFA submissions to ANVISA Brazil, and three SAPHRA submissions in South Africa. One Indian patent was granted (Process for the Preparation of Rupatadine Fumarate Form A — IN565646), and four new patent applications were filed. Total R&D expenditure stood at ₹3,840.67 Lakhs compared with ₹2,045.86 Lakhs in the previous year.

The company also secured its 4th consecutive USFDA inspection with zero observations (NIL 483) for the Masulkhana plant and received EDQM approval for the Baddi plant.

AGM and Corporate Actions

The 41st AGM is scheduled for Saturday, September 26, 2026, at 1:00 pm via video conferencing. Key agenda items include:

• Adoption of FY26 financial statements.
• Declaration of final dividend.
• Re-appointment of Mr. Sanjay Suri as director liable to retire by rotation.
• Ratification of cost auditor remuneration of ₹2,50,000.
• Change in designation of Mr. Sanjay Suri from Whole-Time Director to Managing Director effective July 1, 2026.
• Re-appointment of Mr. Sushil Suri as Chairman & Managing Director for three years from October 20, 2026.
• Extension of the approved timeline for hiving off the Medical Devices business into Morepen Medipath Limited at ₹19,710.12 Lakhs.

The paid-up equity share capital stood at ₹10,958.41 Lakhs, with no change during the year. Unsecured term loan facilities aggregating ₹13,000.00 Lakhs were availed from Kookmin Bank, Woori Bank and Hana Bank during the year.

Resolutions will be passed through electronic voting only. Remote e-voting commences on Wednesday, September 23, 2026, from 9:00 am and concludes on Friday, September 25, 2026, at 5:00 pm. Members without registered email IDs have received physical letters containing the web-link to the annual report.

Leadership Remuneration Details

The AGM will approve revised remuneration structures for key leadership roles:

Mr. Sanjay Suri (Managing Director):

• Basic Pay and Allowances: Up-to ₹4.00 crore per annum.
• Other Perquisites: Up-to ₹2.00 crore per annum.
• Commission(s) and/or Incentives: Up-to ₹8.00 crore per annum.

Mr. Sushil Suri (Chairman & Managing Director):

• Basic Pay and Allowances: Up-to ₹5.00 crore per annum.
• Other Perquisites: Up-to ₹1.50 crore per annum.
• Commission(s) and/or Incentives: Up-to ₹10.00 crore per annum.

Morepen Laboratories has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026. The filing outlines the company’s environmental, social, and governance performance across its pharmaceutical and medical device operations.

The company reported a turnover of ₹16,766.7 crore and a net worth of ₹12,454.1 crore for FY26. Exports contributed 40% of total turnover, with the business serving over 80 countries. The API segment accounted for 56.33% of turnover, while medical devices contributed 35.60%.

Environmental Performance

Morepen allocated 9.39% of its capital expenditure to technologies improving environmental and social impacts in FY26, up from 0% in FY25. Key initiatives included transitioning boiler fuel to biomass at its Baddi facility and converting boilers to dual-fuel LPG systems at Parwanoo.

Total energy consumption rose to 456,771.57 GJ from 437,741.34 GJ in the prior year. However, energy intensity improved to 272.43 GJ per crore INR of turnover, down from 282.97 GJ. Scope 1 greenhouse gas emissions fell to 4,977.55 metric tonnes from 5,941.30 metric tonnes, while Scope 2 emissions increased to 22,950.33 metric tonnes.

Social Metrics

The workforce comprised 1,314 permanent employees and 1,755 workers as of March 31, 2026. Women constituted 9.59% of permanent employees and 12.76% of workers. The company reported zero fatalities and zero lost-time injuries among employees, with a Lost Time Injury Frequency Rate (LTIFR) of 0.24 for workers.

What the Numbers Show

Capital expenditure directed toward environmental improvements surged to 9.39% of total capex in FY26, marking a significant shift from zero such spending in FY25. This investment coincided with a reduction in energy intensity per rupee of turnover, suggesting that recent green technology upgrades are enhancing operational efficiency despite higher absolute energy consumption.