Granules India Limited has filed its monitoring agency report for the quarter ended March 31, 2026, with the National Stock Exchange of India Limited and BSE Limited. The report, issued by M/s. India Ratings & Research Private Limited, covers the utilization of proceeds raised through the company's preferential issue in accordance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The preferential issue was conducted between February 10, 2026, and February 23, 2026, comprising 51,28,205 equity shares of face value ₹ 1 each at INR 585 per share and 2,50,00,000 convertible warrants at INR 585 per warrant. The total issue size amounted to INR 1,762.50 Crores. As of March 31, 2026, the company had received INR 665.63 Crores, which included the full subscription amount for equity shares (INR 300.00 Crores) and 25% upfront payment for convertible warrants (INR 365.63 Crores).

The monitoring agency confirmed no deviation from the objects of the issue based on the management undertaking and statutory auditor certificate dated April 23, 2026, issued by S.R. Batliboi & Associates LLP. The proceeds were allocated for funding business operations, including capital expenditure, operating expenses, prepayment of term loans, working capital, vendor payments, and general corporate purposes.

During the quarter ended March 31, 2026, the company utilized INR 218.14 Crores of the proceeds. The utilization included INR 44.21 Crores for salary payments under general corporate purposes and various amounts for capital expenditure, operating expenses, and investments in subsidiaries. The company also made an equity investment of INR 400.00 Crores in M/s Granules Life Sciences Private Limited during the quarter.

The unutilized proceeds of INR 447.48 Crores as of March 31, 2026, have been deployed in fixed deposits with Union Bank of India and maintained in monitoring accounts. Five fixed deposits of INR 10.00 Crores each, maturing on June 25, 2026, yielded returns at 6.80%. Additionally, INR 14.76 Crores remained in the Kotak Bank monitoring account, and INR 382.88 Crores was held with Granules Life Sciences Private Limited.

The monitoring agency noted that all projects are ongoing as per the tentative timelines specified in the offer document, with no delays reported. The company has 18 months from the issue date for warrant holders to exercise their conversion option, with the balance 75% of warrant value (INR 438.75 per warrant) to be received upon conversion.

Granules India has reported a shift in its geographical revenue composition during Q4 FY26, with the North American market contributing a smaller share compared to the previous quarter. This change reflects the company's evolving market dynamics and regional performance variations.

Regional Revenue Distribution

The pharmaceutical company disclosed that its revenue share from North America decreased during the quarter, indicating a shift in the geographical mix of its business operations.

Market Diversification Impact

The reduction in North America's revenue contribution from 79% to 72% represents a 7 percentage point decline quarter-on-quarter. This shift suggests that other geographical markets may have contributed more significantly to the company's revenue mix during Q4 FY26.

Business Performance Context

Despite the regional revenue mix changes, Granules India continues to maintain its strong operational performance. The company had previously reported robust Q4 results with consolidated net profit rising 31.6% to ₹2 billion and revenue growth of 22.5% to ₹14.7 billion year-on-year.

The geographical revenue distribution change occurs alongside the company's continued focus on operational efficiency and market expansion across different regions.