Transcript of the Earnings Conference Call for Q4 and financial year ended on March 31, 2026
GRANULES · price
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Granules India delivered strong FY26 results with revenue crossing INR 53,656 million (20% YoY growth) and 6 consecutive quarters of sequential growth. Gross margin expanded to 65% (up 355 bps YoY), driven by shift towards complex generics and higher contribution from value-added formulations. EBITDA grew 25% to INR 11,851 million with margin at 22.1%. The newly acquired peptide CDMO business (Senn Chemicals) turned EBITDA positive in Q4, contributing INR 1,593 million revenue. Finished dosages (74% of revenue) and Europe (81% YoY growth, 15% of revenue) remained key drivers. Net debt reduced significantly to INR 4,021 million from INR 7,061 million. Management flagged uncertainty on margins due to rising raw material and freight costs from the West Asia situation, though they remain confident of passing through costs over time. Gagillapur remediation is complete and the company awaits FDA reinspection. FY27 capex is guided at INR 600 crores (INR 200+ crores for US distribution center).
Strong operational execution with improving margins and debt reduction signals financial health. However, input cost pressures and delayed Gagillapur FDA reinspection remain key watch items. The peptide CDMO emerging as the fourth revenue pillar and GPI's rise to 27th position among US generic companies are positive developments for long-term growth.