Granules India (532482) Q4 24/25 earnings summary

Executive summary

• Q4 FY 2025 saw strong gross margins and continued growth focus, despite operational headwinds from FDA remediation at the Gagillapur facility, which led to a temporary slowdown in output and is expected to persist for another quarter or two.

• Strategic expansion into high-growth areas such as peptides (via Senn Chemicals AG acquisition) and oncology, with new launches in CNS and ADHD segments in the U.S.

• Sustainability initiatives advanced, including a gold EcoVadis rating and improved CDP climate score.

• Audited standalone and consolidated financial results for Q4 and FY25 were approved, with an unmodified audit opinion from statutory auditors.

• The group operates in a single segment: pharmaceutical products, including ingredients and intermediaries.

Financial highlights

• Q4 FY 2025 revenue was INR 11,974 million, up 2% year-over-year and 5% sequentially; full-year consolidated revenue was INR 44,816 million, slightly up from INR 44,560 million in FY 2024.

• Gross margin for Q4 FY 2025 rose to 63.4% from 60.1% in Q4 FY 2024, driven by a shift to higher-margin formulations; full-year gross margin up 635 bps year-over-year.

• Q4 EBITDA was INR 2,524 million (21.1% margin), nearly flat year-over-year; full-year EBITDA grew 10% to INR 9,452 million.

• Consolidated net profit for FY25 was INR 5,015 million, up from INR 4,053 million in FY24, aided by a cyber insurance claim of INR 308 million.

• Net debt reduced to INR 7,061 million from INR 8,289 million in Q3 FY 2025; cash flow from operations for the year doubled to INR 8,666 million.

Outlook and guidance

• No formal revenue or EBITDA guidance for FY 2026, but management expects improvement over FY 2025 despite continued Gagillapur slowdown for another quarter or two.

• CapEx guidance for FY 2026 is INR 600 crore, including ongoing investments in Senn Chemicals, oncology, and peptide projects.

• GLS Phase II (7.5 billion doses) to reach near full utilization by FY 2027, with European regulatory approvals expected in Q2 FY 2026.

• Focus remains on high-margin formulation products, new launches, and expanding North America business.

• Ongoing investments in GLS and CZRO projects to support future growth.