Granules India (532482) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked stabilization, regulatory remediation, and strategic repositioning for sustainable growth, with a focus on compliance, operational improvements, and portfolio evolution.

• Achieved record consolidated revenue of INR 53,656 million, up 20% year-over-year, surpassing the INR 50,000 million milestone, with strong growth in complex generics and CDMO platforms.

• The GPI facility in Virginia reached targeted operating potential, and the acquisition of Senn Chemicals expanded the CDMO and peptide business, now a key growth pillar.

• Quality, compliance, and ESG initiatives were prioritized, with significant progress in remediation, digital quality infrastructure, and external sustainability recognition.

• Audited standalone and consolidated financial results for Q4 and FY26 were approved, with an unmodified audit opinion from statutory auditors.

Financial highlights

• FY 2026 consolidated revenue reached INR 53,656 million, up 20% year-over-year; EBITDA was INR 11,851 million, up 25% year-over-year; PAT was INR 5,950 million, up 19% year-over-year.

• Q4 FY 2026 revenue was INR 14,706 million, up 23% year-over-year and 6% sequentially, with Q4 EBITDA at INR 3,521 million, up 40% year-over-year.

• Gross margin for FY 2026 expanded to 65%, up 355 bps year-over-year; Q4 gross margin was 65.7%, up 233 bps year-over-year.

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

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

Outlook and guidance

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

• Nine US product applications await clearance from Gagillapur; ongoing product transfers and launches are expected to drive growth.

• Peptide CDMO aims for annual PAT positivity in FY 2027, with quarter-to-quarter variations expected due to project-driven nature.

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

• Final dividend of INR 1.75 per equity share recommended for FY26.