Key Financial Figures (Q1 FY27)

  • Revenue: ₹14,768 Million, representing a 22% Year-over-Year (YoY) growth.
  • Gross Margin: 65.6%, an expansion of 74 basis points (bps) YoY. The gross profit amounted to ₹9,690 Million.
  • EBITDA: ₹3,389 Million, representing a 37% YoY growth. The EBITDA margin was 22.9%, an expansion of 256 bps YoY.
  • Profit Before Tax (Before Exceptional Items): ₹2,404 Million, a 41% YoY growth.
  • Exceptional Items: ₹0 Million for the quarter, compared to ₹259 Million in the year-ago period.
  • Profit After Tax (PAT): ₹1,800 Million, a 60% YoY growth. The PAT margin was 12.2%, an expansion of 288 bps YoY.

Operational and Strategic Highlights

  • Portfolio Transformation: A strategic shift towards Complex Generics (Complex Gx) is a key driver. Complex Gx now constitutes 50% of Finished Dosage (FD) revenue, up from 39% a year ago.
  • R&D Investment: R&D expenditure was ₹880 Million, which is 6.0% of sales. This represents a 30% YoY increase and is focused on supporting a differentiated, high-value pipeline.
  • Geographic Diversification: Strong YoY growth was noted in Europe and the Rest of the World, aiding in maximizing returns on R&D capital.
  • Peptide CDMO Performance: The Peptide Contract Development and Manufacturing Organization (CDMO) business, including the acquired Senn Chemicals AG (Switzerland), reported an EBITDA loss of ₹124 Million for Q1 FY27, compared to a positive EBITDA of ₹15 Million in Q4 FY26. This is stated to be in line with project milestones.

Regulatory and Quality Compliance Updates

  • GPI, Virginia, USA: Received a Voluntary Action Indicated (VAI)-classified Establishment Inspection Report (EIR) from the US FDA for its inspection conducted in April 2026.
  • Gagillapur Facility: Underwent a TGA Australia inspection in April 2026, which was closed with no critical findings. It is awaiting a US FDA reinspection (last inspected August 2024).
  • Genome Valley Facility: Received an EU GMP certificate from the Czech Agency following its December 2025 inspection.
  • Compliance Investment: A phased digital transformation and quality compliance program is underway across all manufacturing facilities. ₹260 Million was invested in the last year, with a planned investment of ₹750 Million over the next two years focused on automation and digitalization within Quality operations.

Capacity and Capital Expenditure (Capex)

  • Capex: Moderated in Q1 FY27 as the major investment in the Genome Valley facility was completed. Future investments are expected to focus on digitalization and modular growth projects at existing facilities.
  • Capacity Utilization: The new Genome Valley facility (10 Billion dosage capacity) is now USFDA approved, and shipments of Rx products have commenced, increasing formulation capacity by 40%.
  • Return on Capital Employed (ROCE): Improved to 18.0%, up approximately 196 bps YoY.

Management Commentary (Dr. Krishna Prasad Chigurupati, Chairman & Managing Director)

The commentary emphasized that foundations strengthened in FY26 are translating into greater execution confidence and business resilience. The focus remains on regulatory excellence, portfolio transformation toward complex products, and geographic diversification. External cost and supply chain pressures are acknowledged but the company continues to invest in R&D, digitalization, and operational excellence for long-term value creation.

Forward-Looking Statements

The presentation contains forward-looking statements subject to risks and uncertainties, including general economic conditions, ability to implement strategy, R&D efforts, currency fluctuations, interest rate changes, regulatory changes, and competitive pressures. The company accepts no obligation to update these statements.

Investor Relations Contact

For further information, contact the Granules IR desk at investorrelations@granulesindia.com or the designated representatives, Ms. Payal Dave and Mr. Irfan Raeen.