Granules India Ltd reported a 60% year-on-year increase in profit after tax to ₹1,800 Mn for the quarter ended June 30, 2026, driven by strong operational performance and a 22% rise in revenue from operations to ₹14,768 Mn. The vertically integrated pharmaceutical company saw its EBITDA grow 37% to ₹3,389 Mn, with margins expanding as the company focused on complex and differentiated products. Net debt stood at ₹1,012 Mn, a reduction of ₹8,467 Mn from Q1FY26, resulting in a net debt to EBITDA ratio of 0.07x.

Financial Performance

Revenue from operations for Q1FY27 reached ₹14,768 Mn, compared to ₹12,101 Mn in the corresponding period of the previous year. Profit before tax before exceptional items rose 41% to ₹2,404 Mn. The company’s Return on Capital Employed (ROCE) improved to 18.0% in Q1FY27 from 17.6% in FY26.

Business Segments and Geography

Revenue share from North America stood at 72% in Q1FY27, down from 77% in Q1FY26, while Europe’s contribution increased to 16% from 13%. In terms of product portfolio, Finished Dosages (FD) contributed 74% of revenue from operations, followed by Active Pharmaceuticals Ingredients (API) at 13%, Pharmaceutical Formulation Intermediates (PFI) at 9%, and Peptides CDMO at 4%.

Management Commentary

Dr. Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India Limited, stated that Q1 FY27 marks an important step forward as foundations strengthened during FY26 translate into greater execution confidence. He emphasized the company's focus on regulatory and quality excellence, portfolio transformation, and geographic diversification. While noting external cost pressures and supply chain volatility, management affirmed continued investment in R&D towards Complex Gx, digitalization, and sustainability to support long-term value creation.

Granules India Limited has filed its Integrated Annual Report for FY 2025-26, marking a landmark year in which the company crossed the ₹50,000 million revenue milestone. The report covers the period from 1st April 2025 to 31st March 2026 and is prepared in accordance with the International Integrated Reporting Council (IIRC) framework, GRI 2021 standards, and TCFD recommendations, with external assurance provided by Bureau Veritas (India) Pvt. Ltd.

Financial Performance: A Year of Structural Strengthening

Granules India delivered strong financial results in FY 2025-26, driven by robust growth in Finished Dosages, improving product mix, and increasing contribution from Complex Generics and the emerging Peptide/CDMO business. The following table summarises consolidated key financial metrics:

On a standalone basis, revenue from operations stood at ₹34,739.60 million in FY 2025-26 compared to ₹30,301.63 million in FY 2024-25, with standalone net profit after tax of ₹4,006.67 million versus ₹3,193.36 million in the prior year. Cash flow from operations on a consolidated basis stood at ₹7,932.50 million. Total consolidated assets increased to ₹77,199.50 million as of March 31, 2026, from ₹62,525.61 million in the previous year.

Segment Performance

Finished Dosages (FD) remained the largest revenue contributor, accounting for 74% of total consolidated revenues in FY 2025-26. The following table presents segment-wise revenue:

The FD segment recorded 16% year-on-year revenue growth, driven by strong demand in North America and Europe, new product launches, and increasing contribution from Complex Generics. The API segment grew 10% year-on-year, while PFI revenue grew 25%. The Peptide/CDMO segment emerged as a new growth platform following the acquisition of Senn Chemicals AG, turning EBITDA-positive in Q4 FY 2025-26.

Portfolio Transformation and Strategic Priorities

The share of Complex Generics in the formulations portfolio increased to 43% in FY 2025-26, up from 31% in the prior year. The company filed 6 US ANDAs, 3 EU dossiers, 1 Canadian dossier, and 15 filings across various regions during the year, along with 6 US DMFs and 10 additional DMF filings globally. R&D expenditure stood at ₹2,853 million, representing 5.3% of revenues, with 441 scientists working across six specialised research centres.

Key strategic priorities highlighted in the report include:

• Completing the regulatory journey at the Gagillapur facility, with remediation substantially complete and the site audit-ready
• Commercialising and utilising the capacity of the GLS Genome Valley facility across global regulated markets
• Accelerating the transition toward complex and differentiated products
• Driving the Peptide CDMO platform toward sustainable profitability
• Strengthening the integrated manufacturing network across India, the US, and Switzerland

Sustainability and ESG Highlights

The company achieved significant sustainability milestones during FY 2025-26, including an EcoVadis Gold rating placing it among the top 5% globally, a CDP Climate Change score of 'A' (progressing from C to B to A over three cycles), and an S&P Corporate Sustainability Assessment score of 62 out of 100. The Gagillapur facility achieved Zero Waste to Landfill Platinum Plus certification with over 99% waste diversion. Key environmental performance metrics are summarised below:

The company achieved a 45.7% reduction in Scope 1 and Scope 2 absolute emissions compared to the FY23 baseline year. Granules became a signatory to the UN Women's Empowerment Principles and joined the Pharmaceutical Supply Chain Initiative (PSCI) as an official Supplier Partner.

Dividend and Corporate Governance

The Board of Directors has recommended a final dividend of ₹1.75 per equity share (face value ₹1 per share) for FY 2025-26. The 35th Annual General Meeting is scheduled for August 06, 2026. The company allotted 51,28,205 fully paid-up equity shares on a preferential basis and issued 2,50,00,000 convertible warrants during the year, raising ₹3,000 million and ₹3,656.25 million respectively. The paid-up share capital as of March 31, 2026 stands at 24,77,96,921 equity shares of ₹1 each. The Board comprises eleven Directors, including six Independent Directors, with women representing 27% of Board positions.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE101D01020/2fb83345-dbaf-49f2-a39f-fab9a05eb945.pdf