Granules India reported a robust Q2 FY26, driven by formulations growth in North America and Europe. Sales increased, with EBITDA rising due to higher sales and margin expansion, despite losses from Ascelis Peptides. R&D stood at ₹705 Mn. The company received key regulatory approvals and successfully cleared multiple customer audits.
Financial Performance Overview
Granules India’s Q2 FY26 results highlight strong performance, primarily fueled by its formulations business in North America and Europe:
- Sales: Experienced year-over-year growth driven by formulations.
- EBITDA: Increased due to sales growth and improved margins, despite an impact of ₹200 Mn loss from Ascelis Peptides.
Key Financial Metrics
Here’s a snapshot of the company’s key financial performance indicators:
- Revenue: ₹12,970 Mn in Q2 FY26, a 34% increase year-over-year.
- Gross Margin: 65.7%, up 368 bps year-over-year.
- R&D Expenses: ₹705 Mn, representing 5.4% of sales.
- PAT: ₹1,306 Mn, a 34% increase year-over-year.
Segment and Market Analysis
The revenue split reveals the following:
- FD (Finished Dosages): Accounted for ₹9,657 Mn with a year-over-year growth of 29%.
- API (Active Pharmaceutical Ingredients): Contributed ₹1,705 Mn, a 20% increase year-over-year.
Geographically:
- North America: Generated ₹9,882 Mn, a significant 30% year-over-year growth.
- Europe: Showed substantial growth, reaching ₹1,528 Mn, a 66% year-over-year increase.
Business Strategy and Developments
Granules India remains focused on:
- Sustaining key product leadership through backward integration and process improvements.
- Expanding into new dosage forms and controlled substances.
- Advancing formulation technologies.
R&D and Regulatory Milestones
- Achieved 91 US FDA approvals to date.
- Filed 3 ANDA in Q2 FY26.
Manufacturing Network
Granules operates a global network with key facilities at:
- Bonthapally
- Jeedimetla
- Vizag
- Gagillapur
- Virginia (USA)
- Genome Valley
Sustainability Initiatives
- Committed to achieving net-zero emissions by 2050.
- Focus on increasing the share of renewable energy and reducing waste.
Source: BSE
