Granules India (532482) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was Rs 15,599.74 million, up 20% YoY and 6% QoQ; net profit was Rs 1,818.37 million, up 39% YoY.

• Eighth consecutive quarter of sequential revenue growth, supported by complex generics and broad-based demand despite higher input and logistics costs.

Financial highlights

• EBITDA was Rs 3,376 million, up 21% YoY and flat QoQ; EBITDA margin was 21.6%, up 19 bps YoY and down 131 bps QoQ.

• Gross margin was Rs 10,039 million, up 18% YoY; gross margin rate was 64.4%, down 134 bps YoY and 126 bps QoQ.

• PAT margin was 11.7%, up 159 bps YoY and down 53 bps QoQ; PBT was Rs 2,434 million, up 38% YoY, with margin at 15.6%.

• R&D expense was Rs 885 million, 5.7% of sales, up 26% YoY; manpower cost rose 18% and other expenses rose 13% YoY.

• Operating cash flow was Rs 650 million, versus Rs 3,874 million in Q1 FY27 and Rs 1,937 million in Q2 FY26, reflecting planned working-capital investment.

Reported results

• H1 FY27 consolidated revenue was Rs 30,367.48 million and net profit Rs 3,618.00 million; unaudited results received an unmodified limited-review conclusion.

• Q2 FY27 standalone revenue was Rs 9,478.21 million and net profit Rs 1,085.16 million; H1 standalone revenue was Rs 17,496.98 million and net profit Rs 1,802.62 million.

• Consolidated EPS was Rs 7.22 basic and Rs 7.03 diluted in Q2; H1 EPS was Rs 14.48 basic and Rs 14.15 diluted.

• H1 FY27 consolidated operating cash flow was Rs 4,524.43 million; investing cash outflow was Rs 7,067.89 million.