Granules India Q1 Results: Net profit dips 16%, revenue rises on strong sales growth in North America

The profit slipped on account of exceptional items, mainly expenses related to ongoing litigation settlements, Granules said in a statement.

Revenue from operations climbed 3% year-on-year (YoY) to ₹1,210 crore as compared to ₹1,180 crore in Q1 FY25, majorly driven by sales growth in North America.

On the operational level, Granules' earnings before interest, taxes, depreciation, and amortisation (EBITDA) slipped 13.5% to ₹185 crore for Q1 FY26 in contrast to ₹214 crore in the corresponding quarter the preceding year. Margin contracted 15.2% during the quarter as against 18% YoY.

Active Pharmaceutical Ingredients (API), Pharmaceutical Formulation Intermediates (PFI), Finished Dosages (FD) and Peptides/CDMO contributed 14%, 10%, 74% and 2% of revenue from operations, respectively, for Q1FY26.

The pharma company’s net debt stood at ₹948 crore, and net debt to EBITDA at 0.96x.

“We delivered healthy cash flow from operations of ₹2,806 million this quarter and made good progress on the Gagillapur remediation programme. USFDA audits at our Bonthapally API facility, GPI in Virginia, and Granules Life Sciences at Genome Valley were successfully completed with one minor observation each. The Danish Medicines Agency also concluded its EU GMP inspection of Gagillapur with certification granted,” said Dr Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India.

The research and development (R&D) expenses stood at ₹68 crore (5.6% of sales) in Q1 FY26 as compared to ₹66.5 crore (5.5%) in Q4 FY25. A new R&D facility is being added for peptide development in IIT, Hyderabad.

The company has received 91 US FDA approvals to date, with 1 ANDA and 2 USDMFs filed in Q1 FY26.

“With our near-term formulations growth trajectory set to resume and the integration of Senn Chemicals through the Ascelis platform in the fast-growing CDMO sector, we are well-positioned for sustainable long-term growth,” Chigurupati further said.

Following the earnings, shares of Granules India gained 2.38% on NSE to trade at ₹451.05 apiece.

Granules India Limited, incorporated in 1991, is a vertically integrated, fast-growing Indian pharmaceutical company headquartered in Hyderabad. It has a global presence extending to over 80+ countries with offices across India, the US, and the UK.