Granules India Q4 Results: Net profit rises 17%, EBITDA slips; board recommends final dividend for FY25

Revenue from operations climbed 2% year-on-year (YoY) to ₹1,197.4 crore as compared to ₹1,176 crore in Q4 FY24 on the back of a sustained increase in formulations' share despite a slowdown in productivity at its Gagillapur facility with ongoing US FDA remediation activities.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA), however, slipped 1.2% to ₹252.2 crore for Q4 FY25 in contrast to ₹9,255.2 crore in the corresponding quarter the preceding year. Margin contracted 21.06% during the quarter as against 21.73% YoY.

“Our strong financial performance reflects the success of our strategic initiatives, particularly our focus on enhancing our product mix by prioritising high-margin offerings and expanding our portfolio of non-legacy molecules. This reflects the strength and adaptability of our business model and our unwavering commitment,” said Dr Krishna Prasad Chigurupati, Chairman and Managing Director of Granules India.

Granules India’s revenue share from North America increased to 79% in Q4 FY25 as compared to 70% in Q4 FY24. The company’s active pharmaceutical ingredients (API), pharmaceutical formulation intermediates (PFI), and finished dosages contribute 12%, 10%, and 77% of revenue from operations, respectively, for Q4 FY25.

The company further said that it achieved better margins by selling higher-margin finished dosages (FD).

The drugmaker’s board has recommended a final dividend of ₹1.50 per share of the face value of ₹1 each for the financial year 2024-25, representing 150% of the paid-up equity share capital of the company. The record date for payment of the final dividend shall be July 31, 2025.

 “We are pleased to report a resilient bottom line and cash flow performance this year, despite sales remaining steady. This was achieved with a profitable formulations growth of 18%, even though we proactively paused Gagillapur’s production operations in Sep-24 for more than a month to reassess the risks and undertake necessary USFDA remediation activities. Productivity of the Gagillapur facility has been lower in H2 FY25 with ongoing remediation activities,” Chigurupati further said.

The pharma major further said that its business growth will be driven primarily by new launches.

Shares of Granules India were trading 0.78% lower on the National Stock Exchange at ₹524.7 apiece.