India · Delayed Price · Currency is INR Granules India Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw strong revenue and margin growth, driven by complex generics, CDMO expansion, and European sales. Regulatory remediation progressed, with Gagillapur audit readiness and peptide CDMO achieving positive EBITDA. FY 2027 will focus on FDA readiness, new launches, and disciplined capital allocation.
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Q3 FY26 saw 22% revenue and 34% EBITDA growth, with margin expansion and strong performance in complex generics and peptide CDMO. Regulatory progress, capacity expansion, and new launches are set to drive further growth, despite ongoing FDA remediation at Gagillapur.
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Revenue grew 34% year-over-year in Q2 FY 2026, led by North America and Europe formulations, with gross margin and EBITDA improving due to operational efficiency and product mix. Regulatory remediation and capacity expansion position the business for double-digit growth from FY 2027.
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Q1 FY 2026 saw 3% revenue growth and improved gross margins, with regulatory milestones achieved and peptide/CDMO expansion underway. Gagillapur remediation is nearing completion, setting up for strong growth in FY 2027, while Europe and peptide segments are expected to drive future revenue.
Fiscal Year 2025
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Q4 FY 2025 saw modest revenue growth and margin expansion, despite operational headwinds from FDA remediation at Gagillapur. Strategic focus remains on high-margin formulations, peptide and oncology expansion, and robust R&D, with significant CapEx planned for FY 2026.
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Q3 FY25 saw revenue of INR 11,377 million (down 2% YoY, up 18% QoQ) and gross margin improvement to 61.7%. Remediation at Gagillapur is 90% complete, with new launches and capacity expansions driving a 20%+ long-term growth outlook. One-off costs impacted margins but are expected to reduce.
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Q2 FY 2025 revenue declined 19% year-over-year due to a voluntary pause at Gagillapur after FDA observations, but gross margin improved to 62% on a favorable product mix. Operations have resumed, new launches are planned, and API demand is expected to recover by Q4.
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Q1 FY2025 saw 20% revenue growth and an 89% jump in EBITDA, driven by strong U.S. sales, new product launches, and a higher share of finished dosages. Gross margins and ROCE improved, while paracetamol API sales and European revenues remained weak. FD and OTC segments are expected to drive future growth.