Morepen Laboratories [NSE: MOREPENLAB], a leading player in India’s pharmaceuticals sector, reported its Q1 FY26 results on Wednesday, 6th August 2025. The company’s performance showed a challenging quarter, marked by a significant drop in net profit and a slight decline in revenue. Despite these challenges, the company continues to operate in a sector that holds growth potential. Investors often track Morepen Laboratories share price to gauge the company’s market performance, with the pharmaceuticals sector showing steady growth potential despite the current downturn.
For Q1 FY26, Morepen Laboratories reported a 70.4% year-on-year decline in net profit, which came down to ₹10.74 crore from ₹36.2 crore in Q1 FY25. This decline was mainly due to lower revenue from operations, which saw a 6.6% fall, bringing it down to ₹425.23 crore compared to ₹455.21 crore last year.
Key Financial Results for Morepen Laboratories Q1 FY26:
| Particulars | Q1 FY26 (₹ Cr) | Q4 FY25 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Growth (%) | QoQ Growth (%) |
| Total Income (₹ Cr) | 429.7 | 470.5 | 458.6 | -6.3% | -8.7% |
| Income from Operations (Net) (₹ Cr) | 425.2 | 465.9 | 455.2 | -6.6% | -8.7% |
| Net Profit (₹ Cr) | 10.7 | 20.3 | 36.2 | -70.4% | -47.2% |
| EPS Basic (₹) | 0.20 | 0.35 | 0.71 | -71.8% | -42.9% |
| EPS Diluted (₹) | 0.20 | 0.35 | 0.71 | -71.8% | -42.9% |
Important Updates from Morepen Laboratories’ Latest Financial Results
- Decline in Net Profit
Morepen Laboratories’ net profit saw a sharp decline of 70.4% in Q1 FY26, dropping to ₹10.7 crore from ₹36.2 crore in the same quarter of the previous year. This significant decrease in profitability is mainly attributed to the reduction in revenue from operations and increased expenses during the quarter.
- Revenue Decline
Revenue from operations for Q1 FY26 decreased by 6.6% year-on-year, reaching ₹425.23 crore as compared to ₹455.21 crore in Q1 FY25. Despite a challenging market environment, the company managed to maintain a reasonable level of revenue.
- Rising Employee Benefit Expenses
Employee benefit expenses increased by 15.18% to ₹55.23 crore, reflecting the company’s ongoing investments in its workforce to maintain its competitive edge.
- Increase in Finance Costs
Finance costs surged by 250.43% YoY to ₹4.03 crore in Q1 FY26, indicating a substantial increase compared to the previous period. This surge in finance costs is a key factor contributing to the decline in profitability.
- Expense Management
Total expenses for Morepen Laboratories rose by 0.89% to ₹414.13 crore from ₹410.47 crore in Q1 FY25. This modest rise in expenses is an indication that the company is facing cost pressures despite the revenue downturn.
- Looking Forward
Despite the challenges faced during Q1 FY26, Morepen Laboratories remains optimistic about the future. The company’s focus on operational efficiency and managing costs will be critical in improving profitability in the upcoming quarters. The pharmaceuticals sector continues to show promise, and with its strategic initiatives, Morepen Laboratories aims to weather the storm and return to growth in the near future.
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