Granules India Limited (GRANULES) Financial Results — Revenue ₹14,768 Cr

Investor Takeaways

PAT increased 60% YoY to ₹1,800 crores in Q1FY27

Net debt reduced to ₹1,012 crores

Revenue grew 22% YoY to ₹14,768 crores

⚠️ Revenue growth slowed sequentially (from ₹14,768 crores in Q1FY27 to ₹14,768 crores in prior quarter? Not available)

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹14,768 Cr	22%
Net Profit	₹1,800 Cr	60%
EBITDA	₹3,389 Cr	37%
EPS	Not available
OPM	Not available

What Changed

Granules India reported strong profitability expansion in Q1FY27, with net profit rising 60% YoY to ₹1,800 crores and EBITDA growing 37% to ₹3,389 crores. The company also reduced its net debt to ₹1,012 crores, supporting a healthier balance sheet. ROCE improved to 18.0%, reflecting better capital efficiency. Revenue growth of 22% YoY was robust, though the filing notes sequential softness in EBITDA, indicating potential margin pressure or operational volatility. The forward-looking strategy emphasizes complex product development and global market expansion, positioning the company for long-term growth despite external cost headwinds. However, the lack of quarterly trend data for the current fiscal year limits assessment of recent momentum.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Granules India Limited	37.24	Not available	18.0%	18,242.81
Sun Pharmaceutical Industries Limited	41.28	15.11%	20.34%	4,50,643.09
Divi's Laboratories Limited	72.41	16.56%	22.09%	1,79,470.03
Torrent Pharmaceuticals Limited	80.06	N/A	N/A	1,49,108.91

Granules trades at a discount to Sun Pharma and Divi's in terms of P/E, but its ROCE of 18.0% is below both peers. The company’s lower valuation may reflect market skepticism about sustainability of profitability gains or growth visibility.

Risks & Concerns

No specific risks identified in this filing

⚠️ Revenue growth slowed sequentially (implied by EBITDA decline of 4% QoQ, though exact revenue QoQ not provided)

High P/E of 37.24 may indicate elevated valuation relative to earnings growth

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	1,137.7	117.6	20.24
Q2FY25	966.62	97.23	21.03
Q1FY25	1,179.87	134.65	21.97
Q4FY24	1,175.78	129.65	21.75

The quarterly trend shows declining profitability metrics in recent quarters, with OPM and profit levels trending downward from Q3FY25 to Q4FY24. However, the current filing reports significantly higher absolute figures for Q1FY27 (₹14,768 Cr revenue, ₹1,800 Cr profit), suggesting a structural shift or potential data inconsistency. Without clarification, the trend cannot be reliably interpreted.

Note: The Quarterly Trend section reflects only the data provided in the context. The large discrepancy between historical quarterly revenues (in the ₹1,000 Cr range) and the current filing’s ₹14,768 Cr revenue indicates either a reporting scale change, consolidation effect, or data anomaly. This requires further clarification for accurate analysis.

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