Granules India Limited reported a record profit after tax (PAT) of ₹1,800 Mn for Q1FY27, up 60% year-on-year, driven by a 22% revenue surge to ₹14,768 Mn and improved operational efficiency. The company achieved a net debt to EBITDA ratio of 0.07x, effectively becoming debt-free, while generating ₹3,874 Mn in operating cash flow. During the earnings call held on July 21, 2026, management highlighted strategic shifts toward complex generics and peptide contract development and manufacturing organization (CDMO) services as primary growth drivers.

Financial Performance and Cash Flow

Revenue from operations reached ₹14,768 Mn in Q1FY27, compared to ₹12,101 Mn in Q1FY26. EBITDA grew 37% to ₹3,389 Mn, with margins expanding to 22.9% from 20% in the prior year period. Profit before tax before exceptional items rose 41% to ₹2,404 Mn. Return on Capital Employed (ROCE) improved to 18.0% from 17.6% in FY26.

Net debt stood at ₹1,012 Mn, down significantly from ₹4,021 Mn at the end of FY26. Chief Financial Officer Mukesh Surana attributed the strong cash generation to reduced receivable days in the U.S. market and disciplined working capital management, which improved net working capital to sales to 29% from 30% in Q1FY26.

Strategic Focus: Peptides and Complex Generics

Complex generics now constitute 50% of Finished Dosages revenue, up from 39% a year ago. Chairman & Managing Director Dr. Krishna Prasad Chigurupati emphasized that the company is transitioning from a volume-driven model to an innovation-led platform. The peptide CDMO business, built around Senn Chemicals, grew more than 100% year-on-year. Chief Strategy Officer Sanjay Kumar stated that the intermediate milestone for the peptide platform is reaching $50 million in annual revenue with over 30% EBITDA margin within three years. For FY27, the target for the peptide segment is to turn profit-after-tax positive.

Capacity Expansion and Regulatory Updates

Management provided updates on key facilities. The Genome Valley facility (GLS), which adds approximately 40% to formulation capacity, is expected to cross 50% utilization by year-end. The U.S. facility, GPI, operates at 70% capacity with room for expansion. Regarding the Gagillapur facility (GGP), remediation work is essentially complete, with seven of eight facilities holding clean Establishment Inspection Reports (EIRs). Nine product launches are pending FDA clearance at GGP.

Capex and Future Outlook

Capex for Q1FY27 was ₹890 Mn, lower than Q4FY26’s ₹1,000 Mn due to the completion of the Genome Valley investment. Management reiterated its full-year capex guidance of ₹600 crore for the remainder of FY27. Additionally, initial estimates for the new peptide intermediate plant in Vizag suggest an investment of ₹100 crore, potentially scaling to ₹200 crore if expanded to API production. R&D expenses rose 30% to ₹880 Mn (6% of sales), focused on high-barrier areas such as CNS, oncology, and complex formulations.

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.

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