Granules India Board of Directors approved the audited financial results for FY26 and recommended a final dividend of ₹1.75 per share. The company achieved record financial performance with consolidated revenue crossing the ₹53,656 million milestone and the highest gross margin in company history. Management characterized FY26 as a year of deliberate reset and measurable progress, stabilizing performance following regulatory corrections.

Board Meeting Outcomes and Corporate Actions

The Board meeting held on April 29, 2026, approved several key decisions under Regulation 33 of SEBI Listing Obligations. The directors recommended a final dividend of ₹1.75 per equity share of face value ₹1 each, representing 175% of the paid-up equity share capital. The record date for dividend payment has been fixed as July 30, 2026, and the 35th Annual General Meeting is scheduled for August 6, 2026.

FY26 Consolidated Financial Performance

The company delivered outstanding consolidated results with revenue from operations reaching ₹53,656.42 million, representing 20% year-over-year growth from ₹44,816.08 million in FY25. EBITDA surged 25% to ₹11,851 million with margin expansion of 100 basis points to 22.1%, including a loss of INR445 million in Ascelis, the peptide CDMO platform acquired during the year. Consolidated net profit grew 19% to ₹5,950.21 million. The gross margin expanded to 65%, an improvement of 355 basis points year-on-year, driven by a sustained shift towards complex generics — rising from 50% in FY22 to 65% over four years. R&D expenses for FY26 stood at INR2,853 million, representing 5.3% of sales, with focus areas including CNS/ADHD, oncology, MUPS and other high-barrier formulations.

Q4 FY26 Quarterly Performance

The fourth quarter demonstrated continued strength with consolidated revenue of ₹14,706.08 million, marking 23% year-over-year growth and 6% sequential growth — the sixth consecutive quarter of sequential growth. EBITDA expanded 40% year-over-year to ₹3,521 million with margin improvement to 23.9%. Net profit increased 33% year-over-year to ₹2,016 million and 34% sequentially. Q4 gross margin improved to 65.70%, up 233 basis points year-on-year and 186 basis points quarter-on-quarter, driven primarily by the peptide CDMO business, which grew from INR33 crores to INR70 crores in the quarter. Q4 capex spend was INR1,000 million compared to INR1,298 million in Q3 FY26.

Strategic Developments and Peptide CDMO Progress

The acquisition of Senn Chemicals AG established a peptide CDMO vertical under the Ascelis Peptides brand, generating INR1,593 million in FY26 revenue and contributing 3% of overall revenue. The business turned EBITDA positive in Q4, validating the investment thesis. The GPI facility in Virginia reached targeted operating potential, moving the company to the 27th position among U.S. generic companies by sales value in FY26, compared to 74th in FY21, and to 4th position in the controlled substance space. Europe delivered strong growth of 81% year-on-year and now represents approximately 15% of total revenue; excluding Senn, Europe grew 49%. Finished dosages remain the core business, contributing 74% of revenue.

On the peptide CDMO platform, management noted that a peptide Centre of Excellence at IIT Hyderabad is now fully active and collaborating with the Zurich R&D team. The next phase includes a brownfield manufacturing facility for peptide intermediates in India, followed by a peptide API capacity at an appropriate stage. For FY27, the peptide CDMO business targets PAT-positive performance on an annual basis, while acknowledging quarter-to-quarter variations inherent in a project-driven CDMO model. Customer access spans large pharmaceutical companies, virtual biotechs, and cosmetics customers, with the company working across double-digit customers. The company is also progressing on TFA-free cosmetic peptide development, which has gained traction with customers.

Regarding Granules CZRO, management noted the DCDA pilot plant in Vizag is close to completing the pilot stage and moving towards commercialization, with the commercial plant project expected to cost approximately INR200 crores.

Regulatory, Quality, and Compliance Update

Quality and compliance remained key priorities throughout FY26. At Gagillapur, remediation activities progressed materially, with cleaning validation completed across all PFI, MUPS and finished dosage blocks using dedicated equipment. Post-warning letter engagement with the U.S. FDA was completed in January, with all action point responses submitted in February and regular progress updates maintained thereafter. Management confirmed the facility is ready for an audit at any time, with 9 applications awaiting clearance from the Gagillapur site. The company also received an ANVISA GMP certificate for the Gagillapur facility, alongside 108 customer audits and 13 regulatory audits completed in FY26.

The GLS facility at Genome Valley received an EIR with VAI status. The Chantilly GPI facility underwent a routine U.S. FDA inspection resulting in 4 procedural Form 483 observations with no data integrity findings, and responses were submitted within the stipulated timeline. The GCH facility in Virginia completed its inspection with zero observations. Cumulative remediation expenses for FY26 were approximately INR50-plus crores, with management indicating these costs will be substantially lower from FY27 onwards.

On the ESG front, Granules achieved the EcoVadis Gold rating, an A rating from CDP for climate change, and an S&P Corporate Sustainability Assessment score of 62, placing the company among the top 10% of global peers. The Gagillapur facility achieved zero waste to landfill Platinum Plus certification.

R&D Filings and FY27 Capital Allocation

During FY26, Granules filed 6 U.S. ANDAs, 3 EU dossiers, 1 Canadian dossier and 15 filings across various regions, along with 6 U.S. DMFs and 10 other DMFs across various regions. Complex generics accounted for a meaningful share of total filings. For controlled substances, two products have received tentative approvals, with next steps subject to ongoing litigation. Management also indicated plans to launch 1 to 2 generic products and 1 to 2 potential first-to-file products. On international expansion of controlled substances, filings have commenced across multiple countries, with finished dosage revenue expected within approximately 2 years and API revenue anticipated sooner.

For FY27, management plans disciplined capital allocation with capex expected in the range of INR600-odd crores, covering a new API facility, IT investments, and a distribution center in the U.S., of which approximately INR200 crores is earmarked for the distribution center. Net working capital is expected to remain at approximately 33% of sales. Net debt may see a small increase in FY27 due to planned capex and higher working capital requirements amid cost escalation uncertainty.

Granules India has announced strategic plans to expand its controlled substance product portfolio while strengthening its peptide contract development and manufacturing organization (CDMO) operations. The pharmaceutical company has outlined clear timelines for product launches and provided guidance on its financial outlook for the coming years.

Controlled Substance Product Pipeline

The company has set ambitious targets for its controlled substance product expansion, planning to introduce one to two new products each year over the next two to three years. This strategic initiative is supported by a robust pipeline of applications currently under regulatory review.

The company is preparing for potential U.S. market launches, with nine applications awaiting approval from its Gagillapur manufacturing site. This regulatory pipeline positions Granules India to capitalize on opportunities in the controlled substances market segment.

Peptide CDMO Platform Outlook

Granules India has provided guidance on its peptide CDMO platform performance, targeting positive annual results by FY27. The company acknowledges that while the overall annual performance is expected to be positive, there may be quarterly fluctuations in this business segment.

The peptide CDMO platform represents a strategic growth area for the company, offering specialized manufacturing services for complex pharmaceutical products. The projected positive performance by FY27 indicates the company's confidence in this business vertical's long-term prospects.

Financial Projections and Facility Investments

The company expects minimal changes in its net debt position for FY27, with projections indicating little change or a slight rise due to operational spending and increased working capital requirements. This measured approach to debt management reflects the company's balanced growth strategy.

Gagillapur Facility Remediation

Granules India has provided an update on remediation costs associated with its Gagillapur facility. The company forecasts that these costs will drop significantly from FY27, following decreases already observed in the last two quarters of FY26. This reduction in remediation expenses is expected to contribute positively to the company's overall cost structure and operational efficiency.

The declining remediation costs indicate progress in addressing facility-related issues, which should support the company's ability to secure approvals for the nine pending applications from this manufacturing site.