Granules India (532482) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked stabilization, regulatory remediation, and strategic repositioning for sustainable growth, with record revenue of ₹53,656 million, up 20% year-over-year, and an unmodified audit opinion from statutory auditors.

• The GPI facility in Virginia reached targeted operating potential, Senn Chemicals AG was acquired, and peptide CDMO became a fourth revenue pillar with positive EBITDA in Q4.

• Compliance, quality, and ESG initiatives were strengthened, earning recognitions such as EcoVadis gold, CDP A rating, and S&P sustainability score of 62.

• Strategic investments in R&D and capacity expansion supported growth in complex generics and CDMO platforms.

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

Financial highlights

• FY 2026 consolidated revenue reached ₹53,656 million (+20% YoY); Q4 revenue was ₹14,706 million (+23% YoY, +6% QoQ).

• Gross margin for FY 2026 expanded to 65%, up 355 bps YoY; EBITDA was ₹11,851 million (+25% YoY, margin 22.1%); PAT was ₹5,950 million (+19% YoY).

• Net debt reduced to ₹4,021 million from ₹7,061 million in FY 2025; net debt/EBITDA improved to 0.34x from 0.75x.

• Cash flow from operations was ₹7,933 million in FY 2026.

• Earnings per share (consolidated, annualized) rose to ₹24.47 from ₹20.69 year-over-year.

Outlook and guidance

• FY 2027 focus: sustained FDA readiness at Gagillapur, scaling GLS contributions, accelerating complex product shift, and disciplined capital allocation.

• Preparing for potential US product launches with 9 applications awaiting clearance.

• CapEx for FY 2027 expected around ₹6,000 million, with ₹2,000+ million for distribution.

• Remediation expenses to be substantially lower in FY 2027; final dividend of ₹1.75 per equity share recommended.

• Continued investment in R&D (5.3% of sales) to drive pipeline growth, especially in high-barrier segments.