Granules India (532482) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 delivered strong operational and financial results, with revenue up 22% year-over-year and 7% sequentially, driven by Finished Dosage sales in North America and Europe, despite a temporary loss in the IT CDMO business.

• EBITDA margin improved to 22.2% from 20.2% year-over-year, with EBITDA at INR 3,081 million, despite a ₹248 Mn EBITDA loss from Ascelis Peptides.

• ROCE increased to 16.8% from 16.2% sequentially, with cash flow from operations at INR 2,187 million.

• R&D expenses were INR 689 million (5% of sales), supporting long-term growth and 94 regulatory approvals to date.

• Achieved highest “A” rating in climate change from CDP, S&P CSA score up to 62, and credit rating upgrade to AA.

Financial highlights

• Q3 FY26 consolidated revenue reached INR 13,879 million, up 22% year-over-year and 7% sequentially.

• Gross margin improved to 63.9%, up 216 bps year-over-year, though down 183 bps sequentially.

• EBITDA was INR 3,081 million (22.2% of sales), up from INR 2,303 million (20.2%) in Q3 FY25.

• PAT at INR 1,759 million, up 28% year-over-year; consolidated Q3 net profit at INR 1,502.11 million, up from INR 1,176.03 million YoY.

• Cash flow from operations: INR 2,187 million; CapEx: INR 1,298 million in Q3.

Outlook and guidance

• Q4 is expected to see meaningful improvement in peptide CDMO performance, with visibility for positive EBITDA.

• Sequential improvement in sales and margins anticipated, driven by operational leverage and new launches.

• U.S. revenue growth of $40–50 million annually is targeted to continue.

• Remediation plan underway at Gagillapur facility following USFDA warning letter, with production and distribution paused and expected to impact near-term revenue and expenses.

• Ongoing investments in R&D and new product launches to drive future growth.