Granules India Q3 Results: Net profit dips 6% to ₹118 crore, revenue down 1.5%; shares plunge by up to 4.4%

Pharmaceutical manufacturing company Granules India on Friday announced its financial results for the October-December quarter of the current fiscal year (Q3 FY25), reporting a 6.4% decline in its profit after tax (PAT) to ₹117.6 crore as against ₹125.6 crore reported in the year-ago period.

Revenue from operations of the company in Q3 FY25 plunged to ₹1,137.6 crore, down 1.5% as compared to ₹1,156 crore reported in Q3 FY24, the Hyderabad-based company said in a regulatory filing.

Shares of the company are trading 3.27% down at ₹580 apiece on the BSE on January 24. Granules India stock plunged by as much as 4.4% to ₹573.15 per share.

"We continue to sustain our profitable growth in the finished dosages segment, driven by our North American business. We are enhancing quality and compliance through systemic improvements across our operations, including Gagillapur," PTI quoted Granules India Chairman & Managing Director Krishna Prasad Chigurupati as saying.

The company said it voluntarily paused production at the Gagillapur plant in September 2024 for risk assessment on account of the USFDA observations. Subsequently, the production resumed in October in a staggered manner, it added.

"Progress on our greenfield formulation expansion at GLS remains on track, reinforcing our capabilities and driving future growth," he added.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of the company fell 8% to ₹230.2 crore. EBITDA margin stood at 20.2% as against 22% in the year-ago period.

The North American market of the company led the charts, contributing 77% of its total revenue in the reporting quarter as compared to 66% in Q3 FY25.