Synopsis: Morepen Laboratories Limited (NSE: MOREPENLAB) shares zoomed as much as 16% to reach an intraday high of ₹45.40 on Monday, February 23, 2026. The “Zero-Minute” fact is that the rally was triggered by the company securing a massive multi-year global contract worth approximately ₹825 crore ($91 million) for its high-growth Contract Development and Manufacturing Organisation (CDMO) platform.
Why Morepen Labs Share Surged 16%
Morepen Labs shares surged 16% on Monday, February 23, 2026, driven by strong buying interest. Over 20 million shares were traded on the NSE – nearly 10 times the company’s average daily volume.
The scrip surged from a previous close of ₹39.23 to a high of ₹45.40, marking its strongest single-day performance in recent months. This surge follows the announcement of one of the largest single CDMO mandates in the company’s history from a major, undisclosed global pharmaceutical player.
The deal marks a significant milestone in Morepen’s evolution, transitioning it from a pure-play API manufacturer to a preferred long-term partner for global pharmaceutical innovators.
Why the ₹825 Crore CDMO contract is a game-changer
The primary driver is the Strategic Pivot to CDMO. Unlike traditional one-off sales, this multi-year mandate provides long-term revenue stability and higher margins.
The supplies are expected to commence within the next 4 to 5 months, with full execution scheduled through Q1 FY27, ensuring a robust revenue pipeline for the next fiscal year.
Furthermore, the “1-2-1” rule of today’s rally was evident: one massive financial catalyst (₹825 Cr Global Order), two strategic pillars (expansion of the internationally accredited API platform and USFDA-compliant manufacturing), and one clear market objective.
Morepen aims to leverage its leadership in molecules like Montelukast (70% share) and Loratadine (69% share) to cross-sell its CDMO services to global innovators.
Morepen Laboratories: Contract & Financial Highlights
| Key Metric | Details (Feb 23, 2026) | Strategic Impact |
| Contract Value | ₹825 Crore ($91 Million) | Highest Single Order Ever |
| Segment | CDMO (Contract Manufacturing) | Margin Expansion |
| Intraday High | ₹45.40 (Up 15.7%) | Trend Reversal |
| Order Duration | Multi-Year Engagement | Revenue Stability |
| Q3 Net Profit | ₹27.51 Crore | Steady Fundamentals |
Also Read: Why UPL Shares Crashed 13% Today: What’s Behind the Restructuring and Downgrade?
Technical Outlook: Morepen Labs Breakout Above Key Resistance
From a technical perspective, today’s move has significantly improved the stock’s chart structure.
- Volume Shock: The massive volume of 2.5 crore+ shares (NSE+BSE) suggests strong institutional or high-net-worth accumulation at current levels.
- Resistance Breach: The stock has decisively crossed its 100-day moving average (₹43). Analysts at Angel One suggest that if the stock sustains above ₹45, it could target ₹52–₹55 next.
- Relative Performance: With today’s gains, Morepen has jumped more than 35% from its 52-week low of ₹33.50, outperforming the Nifty Pharma index which traded flat.
The Bottom Line
The 16% zoom in Morepen Labs reflects a valuation re-rating as the company deepens its presence in the $90 billion global CDMO market. For the retail investor, the focus remains on the execution timeline in H2 FY26.
If Morepen successfully commences supplies by July 2026, it can permanently increase its operating margins and expand its global manufacturing scale.
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