Revenue and Profit Growth
Morepen Labs’ net sales have shown a consistent upward trend, increasing from ₹768.54 crores in March 2019 to ₹1,811.58 crores in March 2025. This represents a more than twofold increase over six years, reflecting the company’s expanding market presence and product portfolio. Despite a slight dip in sales in March 2022 compared to the previous year, the overall trajectory remains positive.
Operating profit before depreciation and interest (PBDIT) excluding other income rose from ₹67.52 crores in 2019 to ₹174.07 crores in 2025, indicating improved operational efficiency. Including other income, operating profit increased to ₹192.43 crores in the latest fiscal year. Profit after tax (PAT) also followed a similar pattern, climbing from ₹28.84 crores in 2019 to ₹118.02 crores in 2025. Earnings per share (EPS) correspondingly improved from ₹0.64 to ₹2.15, signalling enhanced shareholder value.
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Cost Structure and Margins
The company’s raw material costs have naturally increased in line with sales, rising from ₹343.08 crores in 2019 to ₹999.18 crores in 2025. However, Morepen Labs has managed to maintain its operating profit margin (excluding other income) around 9.6% in 2025, up from 8.79% in 2019. Gross profit margin has also improved slightly, reaching 10.16% in the latest year. This suggests effective cost management despite inflationary pressures.
Employee costs and selling expenses have increased steadily, reflecting business expansion and marketing efforts. Power costs have also risen but remain a smaller proportion of total expenditure. Overall, total expenditure excluding depreciation grew from ₹701.02 crores in 2019 to ₹1,637.51 crores in 2025, consistent with the scale of operations.
Balance Sheet Strength and Asset Growth
Morepen Labs’ total assets have nearly tripled from ₹663.46 crores in 2020 to ₹1,778.10 crores in 2025. Net block, representing fixed assets, increased from ₹216.37 crores in 2020 to ₹463.03 crores in 2025, indicating ongoing capital investments. Capital work in progress also rose significantly, suggesting expansion projects underway.
Shareholders’ funds have grown robustly from ₹284.06 crores in 2020 to ₹1,156.23 crores in 2025, supported by rising reserves. The book value per share has improved from ₹6.32 in 2020 to ₹21.10 in 2025, reflecting enhanced net worth. Total debt increased moderately to ₹79.39 crores in 2025 but remains manageable relative to equity, indicating a balanced capital structure.
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Cash Flow and Liquidity
Cash flow from operating activities has fluctuated over the years, with a negative outflow in 2023 but a positive ₹32 crores in 2025. Investing activities have consistently shown cash outflows, reflecting capital expenditure and investments, with ₹321 crores spent in 2025. Financing activities have provided significant inflows, notably ₹299 crores in 2025, supporting expansion and liquidity.
Closing cash and cash equivalents stood at ₹27 crores in 2025, up from ₹13 crores in 2020, indicating improved liquidity. Working capital changes have been volatile but the company maintains a healthy net current asset position of ₹658.72 crores in 2025, up from ₹20.73 crores in 2020.
Summary of Historical Performance
Overall, Morepen Labs has exhibited strong growth in revenue and profitability over the past six years, supported by prudent cost control and strategic investments. The company’s balance sheet has strengthened considerably, with rising net worth and manageable debt levels. While cash flows have shown some variability, the firm maintains adequate liquidity to support ongoing operations and expansion plans.
Investors may note the consistent improvement in earnings per share and book value, signalling value creation. The company’s operating margins have remained stable despite rising input costs, reflecting operational resilience. These factors collectively underscore Morepen Labs’ positive historical performance and potential for sustained growth.
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