Granules India (532482) Q1 26/27 earnings summary

Executive summary

• Achieved strongest Q1 ever with 22% year-over-year revenue growth to ₹14,768 million, driven by complex generics and peptide CDMO expansion, with PAT up 60% and EBITDA up 37% YoY.

• Complex generics now comprise 50% of finished dosages, up from 39% a year ago, driving gross margin to 65.6% and EBITDA margin to 22.9%.

• Peptide CDMO platform revenues grew over 100% year-over-year, with three new customer projects initiated, though EBITDA loss of ₹124 million reflects ramp-up phase.

• Company is nearly debt-free, with net debt to EBITDA at 0.07x and robust operating cash flow.

• Strategic focus remains on innovation, regulatory excellence, R&D for complex generics, digitalization, and sustainability.

Financial highlights

• Q1 FY27 consolidated revenue: ₹14,768 million (+22% YoY, +0.4% QoQ); PAT: ₹1,800 million (+60% YoY); EBITDA: ₹3,389 million (+37% YoY), margin at 22.9%.

• Gross margin: 65.6%, up 74 bps YoY, supported by product mix shift to complex generics.

• Operating cash flow: ₹3,874 million, significantly higher than previous quarter.

• Net debt reduced to ₹1,012 million from ₹4,021 million at FY26 close; Net Debt/EBITDA improved to 0.07x from 0.34x YoY.

• CapEx for Q1: ₹890 million; full-year guidance remains at ₹6,000 million.

Outlook and guidance

• Confident of sustaining growth trajectory for FY27, with margins expected to remain in the 22%-23% range.

• Peptide CDMO business targeting PAT-positive performance for the year and $50 million revenue with 30%+ EBITDA margin in 2.5 years.

• Genome Valley facility utilization expected to exceed 50% by year-end.

• High-value pipeline with 25 ANDAs under approval and significant launches anticipated, including nine U.S. launches pending FDA clearance.

• Continued investment in R&D, digitalization, and operational excellence to support future growth.