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Granules India revenues grew ~21% YoY

ICICIdirect Research 22 Jul 2026 DISCLAIMER

News: Granules India revenues grew ~21% YoY to ₹ 1467 crore driven by North America (72% of the business); RoW and Europe on sequential basis. On segmental front, Formulations grew ~22% YoY to ₹ 1093 crore (74% of the business), and APIs (APIs + PFIs), grew by ~15% YoY to ~₹ 324 crore. Gross Profit margins stood at 65.4% with a growth of 52 bps YoY. EBITDA grew ~33% YoY to ₹ 329 crore The EBITDA margins stood at 22.4% (206 bps YoY growth). PAT grew ~60% YoY to ~₹ 180 crore.

View: Post the Gagillapur USFDA warning letter, the company has focused on developing other facilities besides focusing on incremental filings across markets and via other facilities. Besides CNS and ADHD, it is also focusing on Oncology as a segment with dedicated API and formulations block at Vizag. On the margins front, the numbers continued to impress with firm GPMs the as pie of complex generics increased to 50%, up 1100 bps YoY. Note that the contribution from integrated products (legacy) has come down from 55% to 46% YoY. Going forward we believe the company will also leverage its new capacity, which was recently commissioned at Genome Valley, Hyderabad which will boost the growth in US and EU geographies. Recent foray into CDMO, by the acquisition of Senn Chemicals AG that specialises in the peptide development has open-up new revenues stream for Granules. The management expects ~US$ 50 million revenues with ~30% EBITDA margins in the next 3-4 years. We believe the focus of management continues to remain on profitability and FCF generation. Recent fund raising via preferential issue (₹ 665 crore + ₹ 1100 crore expected in future) is expected to strengthen the capital commitments for high growth areas.

Impact: Positive

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