Granules India Limited Earnings Summary — Q1 FY2027
Granules India Reports Moderate Revenue Improvement and Sequential Margin Strength Amid Operational Reset
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 8 consecutive quarters.
- Revenue of ₹1,477 Cr is 22.0% higher year-on-year.
- Revenue has compounded at 10.7% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹180 Cr is 59.8% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 15.7% annualised across the period.
- Operating margin stands at 22.9% in Q1 FY2027.
- Operating margin expanded by 256 bps year-on-year.
- Over the last two years operating margin has expanded by 98 bps.
- PBT margin is 16.3%.
- Expense growth of 18.1% remained below revenue growth of 22.0%.
- Operating profit of ₹339 Cr is 37.4% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 76/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,477 | 1,471 | 1,388 | 1,297 | 1,210 | 1,197 | 1,138 | 967 | 1,180 | 1,176 |
| Expenses | Stable | 1,138 | 1,119 | 1,080 | 1,019 | 963 | 945 | 907 | 763 | 921 | 920 |
| Operating Profit | Improving | 339 | 352 | 308 | 278 | 247 | 252 | 230 | 203 | 259 | 256 |
| Operating Margin | Stable | 22.9% | 23.9% | 22.2% | 21.4% | 20.4% | 21.1% | 20.2% | 21.0% | 22.0% | 21.8% |
| Other Income | Volatile | 2 | 25 | -4 | -1 | -10 | 33 | 6 | 3 | 2 | 2 |
| Interest | Stable | 21 | 33 | 29 | 29 | 24 | 24 | 27 | 26 | 27 | 29 |
| Depreciation | Improving | 80 | 82 | 74 | 72 | 69 | 64 | 57 | 53 | 53 | 53 |
| Profit Before Tax | Improving | 240 | 262 | 202 | 176 | 145 | 198 | 153 | 128 | 181 | 176 |
| Tax | Improving | 60 | 61 | 52 | 45 | 32 | 46 | 35 | 31 | 47 | 46 |
| Net Profit | Improving | 180 | 202 | 150 | 131 | 113 | 152 | 118 | 97 | 135 | 130 |
| Net Margin | Stable | 12.2% | 13.7% | 10.8% | 10.1% | 9.3% | 12.7% | 10.3% | 10.1% | 11.4% | 11.0% |
Key Takeaways
- Revenue grew 22% YoY to ₹14,787 million, marking a stable start to FY27 despite logistical headwinds.
- The Gagillapur facility remediation is substantially complete; company is awaiting a follow-up USFDA inspection after closing action items in March 2026.
- Peptide CDMO (Senn Chemicals) was EBITDA positive in the prior quarter and emerged as a fourth revenue pillar, generating ₹1,593 million in FY26.
- Gross margins expanded to record levels (approx. 65%) driven by a shift toward complex generics and value-added formulations.
- Net debt significantly improved to ₹4,021 million from ₹7,061 million YoY, supported by a ₹6,656 million equity infusion.
- Europe segment delivered explosive growth of 81% YoY (49% excluding Senn), now representing 15% of total revenue.
Management Guidance
Management aims for PAT positive performance in the peptide segment for FY27. For the broader group, the focus is on sustained USFDA readiness and scaling commercial contributions from Granules Life Sciences.
Sentiment Shift
Improving
The transition from a regulatory 'reset' year in FY26 to a growth-focused phase in FY27 is supported by record high gross margins and successful integration of the CDMO acquisition.
Outlook
The company expects to maintain a capex run-rate of approximately ₹600 Cr in FY27, focusing on a new API facility and a US distribution center. A brownfield peptide intermediate facility in India is expected in the coming months.
From the Annual Report (Key Quotes)
“FY '26 marked a year of deliberate reset and measurable progress for Granules India.”
“Granules enters FY '27 with improved stability, clearer priorities and greater organizational confidence.”
“GPI as a company had moved to 27th position of all U.S. generic companies in terms of sales value in FY '26.”
Official Quarterly Documents
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This summary is AI-generated from Granules India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.