Granules India, a vertically integrated pharmaceutical company, delivered a strong start to FY27, reporting a 60% year-on-year jump in consolidated profit after tax (PAT) to Rs. 1,800 million for the quarter ended June 30.
The company reported revenue from operations of Rs. 14,768 million in Q1FY27, marking a 22% growth compared with Rs. 12,101 million in the same period last year. EBITDA rose 37% year-on-year to Rs. 3,389 million, while profit before tax (PBT) before exceptional items increased 41% to Rs. 2,404 million.
Granules’ EBITDA margin improved to 23% in Q1FY27 from 20% in Q1FY26, reflecting improved operational performance despite ongoing external cost pressures and supply chain challenges.
North America continued to remain the company’s largest market, contributing 72% of revenue in Q1FY27, while Europe’s contribution increased to 16% from 13% in the corresponding quarter last year.
The company’s finished dosages (FD) segment remained the key revenue driver, accounting for 74% of revenue from operations, followed by active pharmaceutical ingredients (API) at 13%, pharmaceutical formulation intermediates (PFI) at 9%, and peptides CDMO at 4%.
Granules India strengthened its financial position during the quarter, with net debt declining to Rs. 1,012 million — a reduction of Rs. 8,467 million compared with Q1FY26. Net debt to EBITDA stood at 0.07x. Return on capital employed (ROCE) improved to 18.0% in Q1FY27 from 17.6% in FY26.
Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India Limited said, “Q1 FY27 marks an important step forward for Granules India as the foundations strengthened during FY26 begin to translate into greater execution confidence, strategic clarity and business resilience.
"Our focus remains firmly on regulatory and quality excellence, portfolio transformation toward complex and differentiated products, geographic and customer diversification and scaling new growth engines.
"While external cost pressures and supply chain volatility require continuous management for next couple of quarters, we are continuing to invest in R&D largely towards Complex Gx, digitalization, operational excellence, sustainability and talent to support long-term value creation.
"With a stronger organization, a more balanced portfolio and clear strategic priorities, we remain confident in Granules’ ability to deliver sustainable growth for all stakeholders.”
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