Granules India Ltd has reported its consolidated financial results for the first quarter of FY26, showcasing a steady performance amid evolving global regulatory dynamics and pricing pressures. The Hyderabad-based pharmaceutical major posted a total revenue from operations of ₹12.10 billion and a consolidated net profit of ₹1.13 billion, reflecting its resilience in core markets and operational efficiency.
Key Highlights from Q1 FY26 Results
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Total revenue from operations stood at ₹12.10 billion, up 7.4 percent year-on-year
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Consolidated net profit reached ₹1.13 billion, marking a 5.6 percent YoY increase
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EBITDA margin improved to 22.1 percent, driven by cost optimization and product mix
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North America contributed 79 percent of total revenue, up from 70 percent in Q1 FY25
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Gross margin expanded by 180 basis points due to favorable API pricing and backward integration
Segment-Wise Performance
Finished Dosages (FD)
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FD segment contributed ₹6.9 billion, led by paracetamol and ibuprofen formulations
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Strong demand from US institutional buyers and retail chains
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New launches in extended-release tablets and sachet formats supported growth
Pharmaceutical Formulation Intermediates (PFI)
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Revenue from PFIs stood at ₹2.4 billion, with stable demand from LATAM and Southeast Asia
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Drum-to-hopper model continues to reduce material handling costs and improve margins
Active Pharmaceutical Ingredients (API)
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API sales totaled ₹2.8 billion, with increased exports to Europe and Canada
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Cost leadership in paracetamol and guaifenesin APIs maintained
Operational Efficiency and Strategic Initiatives
Granules India continues to focus on manufacturing excellence and regulatory compliance:
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Commissioned new granulation line at Gagillapur facility to support FD expansion
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Received EIR from USFDA for Jeedimetla plant, reinforcing regulatory credibility
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Filed 3 new ANDAs and 2 dossiers in Q1 FY26, targeting cardiovascular and CNS therapies
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Strengthened ESG framework with solar energy adoption across two manufacturing units
The company’s vertically integrated model and global supply chain agility have helped mitigate inflationary pressures and currency volatility.
Market Reaction and Investor Sentiment
Granules India’s stock traded flat post-results, closing at ₹521.50 on the NSE. Analysts remain cautiously optimistic, citing strong export momentum and margin stability.
Investor cues:
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ROE at 9.85 percent and ROCE at 11.7 percent
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Promoter holding stable at 38.82 percent
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Debt-to-equity ratio maintained at 0.73, indicating prudent financial management
While domestic growth remains moderate, the company’s focus on regulated markets and complex generics is expected to drive medium-term upside.
Outlook and Industry Implications
Granules India is poised to benefit from the global shift toward affordable generics and injectable therapies. With a robust pipeline and expanding manufacturing footprint, the company aims to achieve double-digit revenue growth in FY26.
Industry experts view Granules as a key player in India’s pharmaceutical export story, particularly in the US and EU markets. Its emphasis on backward integration, regulatory compliance, and ESG alignment positions it well for long-term sustainability.
Source: Granules India Quarterly Results – August 12, 2025 Moneycontrol – August 12, 2025 Business Standard – August 12, 2025
