Granules India Limited announced its financial results for the second quarter of FY27, reporting a significant 20% year-on-year revenue growth, reaching ₹15,600 Mn. The company also saw a 39% year-on-year increase in PAT to ₹1,818 Mn. EBITDA grew by 21% YoY to ₹3,376 Mn, while gross margins were slightly impacted by input costs. The company highlighted R&D investments and growth in complex generics as key drivers.
Granules India Delivers Strong Q2 FY27 Financials
Granules India Limited has announced robust financial results for the second quarter (Q2) and the first half (H1) of the financial year 2027 (FY27), ending September 30, 2026. The company reported a notable 20% year-on-year growth in revenue, which stood at ₹15,600 Mn for Q2 FY27. This performance was supported by growth across all business segments, although gross margins experienced a slight impact due to elevated input costs.
Key Financial Highlights
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a healthy increase of 21% year-on-year, reaching ₹3,376 Mn. Profit After Tax (PAT) demonstrated even stronger growth, surging by 39% year-on-year to ₹1,818 Mn. The gross margin for the quarter was 64.4%, a decrease of 134 basis points year-on-year, attributed to cost pressures.
Strategic Focus and Growth Drivers
Granules India highlighted its continued focus on R&D and expanding its complex generics (Gx) portfolio. The company mentioned filing two potential first-to-file (FTF) ANDAs in H1 FY27, bringing the total to three potential FTF ANDAs. The acquisition of Senn Chemicals continues to add a high-value growth engine in Peptide CDMO. The company also reported a net cash position of ₹828 Cr from warrant proceeds, earmarked for R&D, manufacturing, and quality improvements.
Operational Performance and Outlook
The management commentary indicated that cost pressures are expected to persist, with efforts underway to manage them with a lag. A recent US FDA audit at the Gagillapur site progressed constructively, and the company is confident in addressing all observations. The company’s strategy emphasizes a shift towards complex generics and peptide CDMO, supported by a strong balance sheet and continuous investment in R&D.
Capital Allocation and Efficiency
Capital expenditure remains focused on strengthening manufacturing capabilities and supporting business growth. The company maintained a stable Net Working Capital (NWC) to Sales ratio within the 29-30% range. Return on Capital Employed (ROCE) stood at 17.6%, showing an improvement from the previous year. The balance sheet strength is further bolstered by the move to a net cash position.
Source: BSE
