Granules India Q3 FY26 earnings call
In brief
Q3 FY26 revenue rose 22% YoY to ₹1,388 cr with EBITDA at ₹308 cr (+34%, 22.2% margin) despite Ascelis Peptides loss; Q4 Ascelis breakeven targeted.
- Management's tone
- Confident
- What was said
- Leaned positive
- Guidance
- None given
- Analyst pushback
- Low
- Stock, next session
- −1.10% (Nifty 50 −0.95%)
- Revenue grew 22% YoY to ₹1,388 cr (7% QoQ) and EBITDA margin expanded 196 bps YoY to 22.2%, even with a ₹24.8 cr Ascelis Peptides EBITDA loss.
- Management expects Ascelis Peptides to cross EBITDA neutrality in Q4 FY26, with FY27 targeted as the first fully synergized profitable year.
- Granules held a virtual post-warning letter meeting with FDA on Gagillapur in early January; the agency raised no concerns on corrective action pace.
- GLS Genome Valley received PAS approval (Nov 10), EIR (Dec 11) and a CBE-30 approval; one-two product launches planned over the next one-two quarters.
- Shareholders approved a preferential issue at the EGM to fund capacity expansion, efficiency and value-accretive opportunities.
An AI read of the company's transcript · the filing
The numbers
The quarter, Q3 FY26
| This quarter | A year ago | Last quarter | Margin | |
|---|---|---|---|---|
| Revenue | ₹1,388 cr | +22.0% | +7.0% | |
| EBITDA (excl. other income) | ₹308 cr | +33.8% | +10.7% | 22.2% (20.2% a year ago) |
| Net profit | ₹150 cr | +27.7% | +15.0% | 10.8% (10.3% a year ago) |
| EPS (₹) | ₹6.19 | +27.6% | +15.1% |
From the company's filed results for the quarter ended 31 Dec 2025 (consolidated), not from the call. EBITDA here excludes other income, so it can differ from the figure management quotes.
What moved the numbers, as management explained it
- Revenue growth of 22% YoY and 7% QoQ was broad-based, led by formulations in North America and Europe; paracetamol volumes rebuilding despite some price erosion.
- Gross margin expanded 216 bps YoY to 63.9% on a better product mix in the finished dosage segment, partly offset by 183 bps QoQ decline.
- EBITDA loss of ₹24.8 cr at Ascelis Peptides (vs lower loss in Q2) from regular/preventive maintenance at Senn in December and additional shifts on a key customer project, expected to convert to revenue in Q4. (one-off)
- EBITDA margin still improved 196 bps YoY to 22.2% and 75 bps QoQ on sales growth and operating leverage despite the Ascelis drag.
- R&D spend held at ~5% of sales (₹68.9 cr) to support filings; remediation cost in Q3 was substantially lower, almost half of Q2.
The numbers management led with
- Q3 capex spend: INR1,298 million
- Q3 cash flow from operations: INR2,187 million (vs INR1,937 mn in Q2 FY26)
- Complex generics share of revenue: 49% in Q3 FY26 (vs 27% YoY, 40% QoQ)
Guidance
Guidance on this call
| What | For | What management said |
|---|---|---|
| Ascelis Peptides EBITDA breakeven (Ascelis Peptides CDMO) | Q4 FY26 | Q4 FY26 Ascelis Peptides EBITDA expected to go above neutrality (breakeven/positive). |
| Ascelis Peptides full-year profitability (Ascelis Peptides CDMO) | FY27 | FY27 targeted as first fully synergized profitable year for Ascelis Peptides on a year basis. |
| GLS product launches (GLS Genome Valley) | — | 1 to 2 GLS product launches planned in the next 1 to 2 quarters with incremental revenue. |
| Complex generics / controlled substance launches | — | 3 to 4 controlled substance/complex generic launches in the next 1 to 1.5 years, expected to contribute meaningfully to growth. |
| Remediation cost normalisation (Gagillapur) | — | Gagillapur remediation cost expected to remain at normal levels for a few quarters and then become negligible. |
What changed since the Thu 13 Nov 2025 call
| What | On the Thu 13 Nov 2025 call | On this call |
|---|---|---|
| Gagillapur FDA meeting (achieved) | FDA granted January 2026 meeting for Gagillapur remediation closure. | Virtual post-warning letter meeting held in early January; agency raised no concerns on corrective action pace; further documentation being submitted. |
| GLS Genome Valley approvals (achieved) | Genome Valley GLS site received first FDA approval. | GLS received PAS approval on Nov 10, EIR on Dec 11, and a CBE-30 approval after the Dec 15-19 inspection. |
| Ascelis Peptides profitability target (restated) | Ascelis Peptides CDMO targeted for PAT profitability by Q4 FY26; FY27 set as first fully synergized year. | Management now targets Q4 FY26 EBITDA neutrality; FY27 still targeted as fully synergized profitable year on a full-year basis. |
| US FDA consultancy costs (restated) | US FDA consultancy costs of ~$2M/quarter to drop drastically in H2 FY26 and approach zero by FY27. | Management said a lot of consultancy costs have come down; will reinvest in system enhancements via capex and opex over coming quarters. |
| Topline growth trajectory (achieved) | Return to double-digit growth anticipated from FY27 onwards. | Q3 FY26 revenue already up 22% YoY and 7% QoQ; sequential improvement guided for sales and margin. |
| GLS product launches (restated) | 4 to 5 products targeted for transfer via CB-30 mechanism with quick approval. | 1-2 product launches from GLS in next 1-2 quarters, scaling further after European approval. |
| Capital raise (new) | Not mentioned on Q2 FY26 call. | Preferential issue approved at the EGM to strengthen balance sheet and fund capacity expansion. |
Guided on earlier calls, and what was filed
| What | For | Guided | Filed |
|---|---|---|---|
| EBITDA margin | FY25 | 22–23% (on the Q4 FY24 call) | 21.8%, below the range |
Filed figures are summed from the company's own quarterly results for the whole period (EBITDA excludes other income); where one sits against what was guided is arithmetic, not a judgement.
The business
By business
Integrated Rx / Formulation
Broad-based growth led by formulations in North America and Europe; gross margin up 216 bps YoY on better finished dosage mix. Lisdexamfetamine has been contributing for four quarters.
Q3 revenue ₹1,388 cr, +22% YoY, +7% QoQ · Gross margin 63.9%, +216 bps YoY · EBITDA margin 22.2%, +196 bps YoY, +75 bps QoQ
Outlook: Sequential improvement expected on sales and margin, driven by operational leverage, revenue ramp and new approvals.
Complex generics (controlled substances, CNS-ADHD, oncology)
Share of revenue mix rose from 27% in Q3 FY25 to 49% in Q3 FY26 and from 40% in Q2 to 49% QoQ; received tentative US FDA approval for generic Adzenys via GPI.
Complex generics share 49% of revenue vs 27% YoY · 3-4 controlled substance launches targeted in next ~1-1.5 years
Outlook: 3-4 launches in next 1-1.5 years expected to contribute meaningfully to growth; amphetamine tentative approval pending litigation outcome.
Ascelis Peptides CDMO
Activity-heavy Q3 with planned maintenance at Senn Chemicals and additional shifts on a key customer project; revenue ₹33 cr vs ₹28 cr last quarter but EBITDA loss of ₹24.8 cr widened.
Ascelis revenue Q3 ₹33 cr vs ₹28 cr QoQ · EBITDA loss ₹248 million in Q3
Outlook: Management targets EBITDA breakeven/positive in Q4 FY26, with FY27 set as first fully synergized profitable year.
API and manufacturing network (Gagillapur, GLS, GPI, GCH)
Gagillapur FDA post-warning letter meeting held early Jan; GLS got PAS, EIR, CBE-30; GPI got EIR; GCH packaging site cleared with zero 483s; Vizag API plant planned with DCS automation.
5 observations at GLS Dec 15-19 inspection, none on data integrity · Zero Form 483 at GCH on Dec 4 inspection
Outlook: De-risking via US and GLS filings; remediation documentation to be submitted shortly; expect formal FDA feedback after submission.
Balance sheet, capex and funding
- Net debt ₹1,015.1 cr vs ₹1,024.1 cr in Q2 FY26
- Cash flow from operations ₹218.7 cr vs ₹193.7 cr in Q2 FY26
- Capex spent in Q3 ₹129.8 cr vs ₹211.2 cr in Q2 FY26
- Cash-to-cash cycle 202 days vs 204 days in Q2 FY26
- Net working capital 27% of sales, down from 33% at year beginning
- Preferential issue approved at EGM to fund capacity expansion, efficiency and value-accretive opportunities
Risks management named
- Gagillapur warning letter resolution timing remains uncertain; re-inspection not yet scheduled
- Ascelis Peptides CDMO still loss-making at EBITDA level in Q3 (INR248mn loss)
- Paracetamol demand recovery offset by ongoing price erosion in some markets
- Working capital intensity rising with new launches; cash-to-cash cycle at 202 days
- Capex/opex step-up for system enhancements across facilities
Q&A
Q&A was dominated by three themes: Gagillapur remediation status (asked first and again by Bino), Ascelis Peptides trajectory (asked by Bino and Tushar), and the complex-generics / controlled-substance pipeline (asked by Ritwik, Vivek and Saniya). Management was forthcoming on commercial commentary — Priyanka gave substantive answers on product pipelines and shares — but consistently declined to put timelines on Gagillapur re-inspection, and explicitly stated the company does not give guidance. Pushback was minimal overall; the closest to pushback was Krisha's follow-up on timing and Tushar's probing on ex-Ascelis growth, both of which management fielded without friction.
Not answered directly
- Gagillapur re-inspection timing
- Lisdexamfetamine revenue specifics
- Formal guidance policy (company does not give guidance)
Asked for a number, answered without one
- Gagillapur remediation expense in Q3 FY26: CFO said it has substantially come down and is almost half of what was incurred in Q2, but no absolute number was given.
- Lisdexamfetamine revenue contribution: Management said it is a meaningful addition to US business but declined to share product-specific numbers.
- Market share for amphetamine (generic Adzenys): Management said it is a tentative approval in litigation; launch timing cannot be confirmed and final approval may take a year.
- Incremental revenue from GLS launches in FY27: Management said 1-2 products to launch in next 1-2 quarters with incremental revenue and more after European approval, without quantifying.
Every question, with its answer
1. Gagillapur FDA remediation
Krisha Kansara, Molecule Ventures
Question. On the Gagillapur facility: you mentioned meeting the FDA in January. Have you met them? Can you outline next steps before clearing the warning letter?
Answer, K. P. Chigurupati, Chairman and Managing Director. We had a virtual meeting with the FDA in early January. They have requested some additional documentation which we will be submitting shortly. The agency has not raised any concerns regarding the adequacy or pace of corrective action. Once we submit our response and further information, we will see what the FDA comes back with. We have also been de-risking — some filings are happening from our US facility and GLS facility, and some products are being site-transferred to GLS. Even if it takes a little longer, it should not be a major problem.
Follow-up. Can you put a timeline to the final re-inspection?
Answer. We cannot put a timeline. We will be submitting the response quite early in the very near future, but will have to see how the agency responds and what timelines come out.
Not answered directly.
2. Ascelis Peptides performance outlook
Bino Pathiparampil, Elara Capital
Question. On the INR25 cr peptide franchise loss given in the investor presentation: how has this moved from Q1 to Q3, and what is the outlook for the next few quarters?
Answer, Sanjay Kumar, Chief Strategy Officer. Numbers are comparable to the previous quarter. This is typical of a CDMO business with quarter-to-quarter variation. Q3 was activity-intensive and the outcome of last quarter's work will reflect in Q4, where we expect meaningful improvement. Revenue visibility over the next set of quarters is significantly better than the past two quarters on a revenue basis.
Follow-up. By improvement do you mean breakeven and positive EBITDA soon?
Answer. Yes, exactly. We covered in the last con call that we expected Q4 to go above EBITDA neutrality. We remain confident and on track. The current ongoing quarter.
3. Ascelis Peptides turnaround drivers
Bino Pathiparampil, Elara Capital
Question. What will drive the Q4 turnaround — transfer of manufacturing to India or additional projects?
Answer, Sanjay Kumar, Chief Strategy Officer. Lead times for these projects go beyond a quarter. We had visibility on execution timelines and understood deliveries will happen in Q4. Quarter-to-quarter variation is unique to CDMO. We were executing during Q2 and Q3 and continue to execute through Q4 with key customer deliveries happening in Q4. Target is to turn positive from next financial year, though quarter-to-quarter variation will remain characteristic.
Follow-up. Can we assume positive EBITDA in FY27 as well?
Answer. Our target is to turn positive from next financial year. On a year basis we are turning towards neutrality and profitability for sure, though quarterly variation remains.
Partly answered.
4. Gagillapur remediation cost
Bino Pathiparampil, Elara Capital
Question. Is there any Gagillapur remediation cost still sitting in the P&L in Q3?
Answer, Mukesh Surana, Chief Financial Officer. The remediation cost has substantially come down. It will be at these normal levels for a few quarters and then will be negligible. It has come down substantially.
5. US revenue growth trajectory
Bino Pathiparampil, Elara Capital
Question. On US revenues, you have added USD 40-50 mn every year for the last couple of years. Can we look forward to similar additions in coming years?
Answer, K. P. Chigurupati, Chairman and Managing Director. That's what we aspire for and we are confident of that.
6. Ascelis Peptides quarterly revenue
Tushar Manudhane, Motilal Oswal Financial Services
Question. On Ascelis Peptide, how much revenue would have been in this quarter or 9 months?
Answer, Mukesh Surana, Chief Financial Officer. This quarter is INR33 crores. Last quarter it was INR28 crores and the previous quarter also around INR28-29 crores. The loss has gone up due to higher execution activities on active projects where revenue will come in Q4, plus regular and preventive maintenance cost in December.
Follow-up. So maintenance cost will reduce and revenue will scale up, which is why EBITDA breakeven...
Answer. You are right, Tushar, yes.
7. Ex-Ascelis business growth outlook
Tushar Manudhane, Motilal Oswal Financial Services
Question. Even if we exclude Ascelis, the rest of the business has scaled in revenue and profitability. How should we think about growth in FY27?
Answer, Mukesh Surana, Chief Financial Officer. We are looking at sequential improvement both on sales and margin side. That will be driven by operational leverage and revenue.
Follow-up. Is this for core products or new approvals and which geographies?
Answer. Priyanka took over: while we were producing, we weren't producing to the full of our capability. We are now increasing capacities and catering to all awards in the US and other markets. Operational efficiencies will increase, productivity will increase, and that will increase the numbers. If Gagillapur resolves, we have launches in place. We also have CBE30 and PAS approvals from GLS to launch.
8. Lisdexamfetamine product status
Yashika Gogia, Nirzar ENT
Question. On lisdexamfetamine, GPI received FDA approval for chewable tablets in December 2024 and capsules in January 2025. Is there any revenue recognition? Insight on this product?
Answer, Priyanka Chigurupati, Executive Director. It's been four quarters since we launched lisdexa caps and tabs and it provides a meaningful revenue addition to our US business. We don't get into product specifics. We were a late entrant to the market but because of our quota history and compliance history with DEA, we were able to get meaningful share, and we plan on increasing it as we keep going further.
Follow-up. Can you clarify numbers/revenue contribution?
Answer. We don't get into product specifics. We were a late entrant but got meaningful share due to quota and compliance history.
Not answered directly.
9. Lisdexamfetamine DEA quota and demand
Yashika Gogia, Nirzar ENT
Question. Since the lisdexa quota has been increased by the DEA, what benefit does this signal and does the industry have sufficient end-market demand to absorb this?
Answer, Priyanka Chigurupati, Executive Director. Without end market demand, the DEA will not increase the quota overall for any product. So yes, there is market. Based on compliance history of each company and continuous outflow of products quarter-on-quarter based on legitimate demand, DEA awards quotas to suppliers.
Partly answered.
10. Generic Adzenys tentative approval
Ritwik Sheth, One Up Fin
Question. You mentioned in-principle approval for an amphetamine product in December across two dosage forms, market size USD 220-230 mn per annum. When can we expect launch and what market share?
Answer, Priyanka Chigurupati, Executive Director. If you are referring to generic Adzenys approval, it was a tentative approval. It is not a full approval because it is an IP-based product. Overall value including the brand is about 170 million units, with only one other generic player in the market. Timing of launch cannot be confirmed because it is a tentative approval in litigation stage.
Follow-up. When do we get final approval, if at all?
Answer. It will take a year.
Partly answered.
11. Complex generics / controlled substances growth
Ritwik Sheth, One Up Fin
Question. What kind of growth did we clock in Q3 and 9M FY26 in the controlled substance segment?
Answer, Priyanka Chigurupati, Executive Director. We should look at this basket as integrated generics, complex generics and others. Within the complex generics range, Y-o-Y growth from Q3 FY25 to Q3 FY26 grew from 27% as a total contribution to 49%, and Q-o-Q grew from 40% to 49%.
Follow-up. Controlled substance would be a significant part of complex generics?
Answer. Yes.
12. Gagillapur remediation cost Q3
Ritwik Sheth, One Up Fin
Question. What was the remediation expense in Q3 FY26?
Answer, Mukesh Surana, Chief Financial Officer. It has been substantially lower, almost half of what we incurred in Q2.
13. Capacity utilization and automation roadmap
Sucrit D. Patil, Eyesight Fintrade Private Limited
Question. As Granules grows formulations and CRAMS, how do you see capacity use and production levels changing over 1-2 years? How will making own APIs and automation reduce production time and keep competitive?
Answer, Priyanka Chigurupati, Executive Director. At Gagillapur, we will have some capacities over the next couple of quarters. At GLS, we will have significant capacities. Both sites will have a lot of products in common, so demand can be catered to from both sites. Almost all APIs we make are already cost competitive. Automation and digitalization are more to increase quality compliance to make us one of the strongest companies in quality going forward. New plants including a differentiated API plant in Vizag will be totally DCS-driven with very few people on site, with paperless documentation.
14. Margin trajectory and balance sheet management
Sucrit D. Patil, Eyesight Fintrade Private Limited
Question. To Mr. Mukesh: with strong cash flows and CRAMS/specialty expansion, how do you plan to keep margins steady and fund new investments? Working capital efficiency, currency risk on exports, digital tools for cost control, ROE/balance sheet strength?
Answer, Mukesh Surana, Chief Financial Officer. EBITDA margin will continue to improve with good mix of formulation and larger complex generics share. Cash flow from operations will be positive quarter-on-quarter. With increased sales there will be working capital investment, but we are steady-stating CCC days even with new launches. On forex, we have good risk management governance and balance hedging accordingly. All processes are effectively managed — that's how ROCE and ROE are improving quarter-on-quarter.
15. Paracetamol demand and inventory
Abu Rafe, Wealth Catalyst
Question. Earlier management indicated paracetamol demand was weak due to elevated inventory. Has excess inventory largely cleared? How does management see paracetamol demand over the next few quarters?
Answer, Priyanka Chigurupati, Executive Director. In certain markets inventory has eased down. We are seeing an increase in demand from key customers in both APIs, PFIs and finished dosages. While we are seeing good growth, we do see some amount of price erosion in paracetamol. But in terms of volumes, they are building back up.
16. GLS/Genome Valley launches and FY27 contribution
Vivek Gupta, Star Investments
Question. Can you outline expected timeline for meaningful product launches from Genome Valley facility and estimates on incremental revenue contribution anticipated in FY27?
Answer, Priyanka Chigurupati, Executive Director. We are going to launch at least one product, if not two, which are existing products from Gpp sites to cater to additional demand. These two products will be launched over the next one to two quarters, starting this quarter. We expect incremental revenue coming up. Once we have European approval for that site, we expect even more numbers to come in.
Follow-up. With oncology and high-value segments as long-term growth levers, how do you plan to scale capacity, build partnerships and progress regulatory filings?
Answer. Looking at the three baskets in the investor presentation, complex generics (oncology, CNS) have sequentially grown. We plan to file more products inclined towards complex generics in future while integrated generics remain a core focus.
17. Controlled substance pipeline and launches
Saniya, SSK Capital
Question. On controlled substances as a US growth driver, can you provide pipeline visibility, expected launch timeline and earnings contribution over next 2-3 years?
Answer, Priyanka Chigurupati, Executive Director. CNS, ADHD and controlled substances are part of complex generics. We have about 8-9 products in the market, 5-6 of which are amongst the top 3, if not number 1, in the markets. Within the next 1-1.5 years, we have about 3-4 launches, and they will contribute to a very meaningful percentage of overall growth.
Follow-up. On the tentative approval for amphetamine, can you elaborate on strategic importance, revenue contribution and market share?
Answer. Very important product strategically as it reinforces strategy of limited competition products to give ADHD patients immediate access. Difficult to manufacture and develop — only one other generic in market. Fits our envisaged pipeline and will contribute meaningfully going forward.
What was said
Topic by topic, in the order it was spoken
Q3 FY26 Consolidated Performance Overview · K. P. Chigurupati (Chairman and Managing Director)
- Revenues INR1,388 crores, +22% YoY; EBITDA INR308 crores, +34% YoY
- Margins expanded meaningfully; broad-based contribution from North America and Europe formulations
- Called 'one of our strongest quarters' despite temporary loss at Peptide CDMO business
- Strategic priorities reiterated: transition to higher complexity generics, Gagillapur normalization, quality systems strengthening, geographic expansion, GLS scaling, Ascelis peptide CDMO build-out
Regulatory & Quality Update - US Facilities · K. P. Chigurupati (Chairman and Managing Director)
- Gagillapur: post-warning letter virtual FDA meeting held early January; further documentation requested and will be submitted shortly; agency has not raised concerns on adequacy/pace of corrective action
- Prudent de-risking via filings from US and GLS sites; site transfers to GLS underway
- Gagillapur received ANVISA Brazil GMP certification
- GLS Genome Valley: US FDA unannounced PAS and GMP inspection Dec 15-19; received 5 observations, none on data integrity; responses submitted within stipulated timelines
- GLS received PAS approval Nov 10, EIR Dec 11 for August inspection; CBE 30 approval received post-inspection
- GPI US facility received EIR Nov 5 for June PAS inspection
- GCH US packaging site: US FDA GMP inspection Dec 4 with zero Form 483
Digitalization & System Enhancements · K. P. Chigurupati (Chairman and Managing Director)
- Digitalization of manual operations advancing; multiple initiatives live at GPI
- Gagillapur rollout targeted mid-calendar year, then other sites
- Consultancy costs have reduced; incremental capex and opex expected for system enhancements
R&D Filings and Approvals · K. P. Chigurupati (Chairman and Managing Director)
- Filed 1 EU dossier (DCP), 8 ROW product registrations via partners, 4 ROW DMFs
- Approvals: tentative US FDA approval for generic Adzenys from GPI; 1 Europe approval; 2 ROW approvals; 1 DMF approval in China
- Increasing emphasis on geographic diversification into ROW markets
ESG Progress · K. P. Chigurupati (Chairman and Managing Director)
- CDP climate change rating improved to A from B; S&P CSA score increased to 62 (top 10% of global peers)
- Reaffirmed commitment as signatory to UN Women's Empowerment Principles, UN Global Compact and PSCI
- Gagillapur achieved zero waste to landfill (platinum plus) with over 99% waste diversion
- Continued measurable progress on Scope 1/2/3 emissions, renewable energy, sustainable procurement and water neutrality
Preferential Issue & Balance Sheet · K. P. Chigurupati (Chairman and Managing Director)
- Strategic capital raise via preferential issue approved at EGM with strong shareholder support
- Proceeds to fund capacity expansion, drive efficiency, pursue value-accretive opportunities
- Capital raise positioned to accelerate growth and create long-term shareholder value
Strategic Direction · K. P. Chigurupati (Chairman and Managing Director)
- Company characterized as in 'phase of renewed momentum'
- Portfolio strategy organized into integrated Rx, complex Rx and CDMO
- Building differentiated peptide CDMO platform through Ascelis with rising innovator engagement
Peptide CDMO (Ascelis/Senn) Update · Sanjay Kumar (Chief Strategy Officer)
- Q3 financial performance modest as anticipated; quarter was execution and activity intensive
- Higher operating costs from planned maintenance activities and additional shifts toward key customer project; Q4 deliveries expected to convert
- Q4 anchored on delivering projects where work over last quarters enters delivery stage; meaningful improvement expected
- Active R&D collaboration between Switzerland and India teams post-Peptide Center of Excellence at IIT Hyderabad operationalization
- India R&D team directly contributing to customer projects including development and execution responsibility
- Progress on TFA-free peptide chemistries reinforcing technology differentiation, particularly in cosmetics
- Commercial focus next couple of quarters: feasibility discussions, seeding samples in amino acid derivatives and complex peptide fragments, RFQ/RFP responses
Financial Performance (Q3 FY26) · Mukesh Surana (Chief Financial Officer)
- Revenue INR13,879 mn vs INR11,377 mn in Q3 FY25 (+22% YoY); sequential +7% vs Q2 FY26
- Gross margin 63.9% (+216bps YoY, -183bps QoQ); YoY improvement driven by better finished dosage product mix
- EBITDA INR3,081 mn (22.2% margin) vs INR2,303 mn (20.2%) in Q3 FY25; +196bps YoY despite Ascelis Peptides loss of INR248 mn
- Ascelis EBITDA loss increase QoQ due to regular and preventive maintenance at Senn Chemicals facility in December 2025
- EBITDA margin +75bps QoQ; improvement driven by sales growth and margin expansion
- R&D expenses INR689 mn (5% of sales) vs INR568 mn (5%) in Q3 FY25 and INR705 mn (5.4%) in Q2 FY26
- Net debt INR10,151 mn vs INR10,241 mn in Q2 FY26
- Cash-to-cash cycle improved to 202 days from 204 days; NWC/sales at 27% vs 33% at year beginning
- Cash flow from operations INR2,187 mn vs INR1,937 mn in Q2 FY26
- Capex INR1,298 mn vs INR2,112 mn in Q2 FY26; ROCE 16.8% vs 16.2% in Q2 FY26
In their words
Yes. I exactly mean that, and that is something that we covered in the last con call as well that we expected Q4 to go above the neutrality on EBITDA that you asked. So we remain confident, and we are on track to get to that position.
We cannot put a timeline to that, but we will be submitting the response quite early in the very near future. But we'll have to see how the agency and then what timelines are going to come out.
Importantly, to date, the agency has not raised any concerns regarding the adequacy or pace of our corrective action.
To check next time
What management committed to on this call, or the dates they gave.
- Whether Ascelis Peptides Q4 FY26 EBITDA crosses neutrality as guided, after the December maintenance and project deliveries.
- Submission of additional documentation to FDA on Gagillapur and the agency's formal response thereafter.
- Launch of 1-2 products from GLS Genome Valley in the next one-two quarters and incremental revenue impact.
- Remediation cost normalisation in the P&L and continuation of cash-to-cash cycle improvement.
- Use of proceeds from the approved preferential issue and any further capex disclosures.
- Paracetamol demand trajectory and price erosion versus volume recovery through FY27.
Transcript
We have not transcribed this call's recording. Read the company's transcript (PDF).
The stock after the call
| After the call | Close | Stock | Nifty 50 |
|---|---|---|---|
| Next session Fri 23 Jan 2026 | ₹565.00 | −1.10% | −0.95% |
| 5 sessions Fri 30 Jan 2026 | ₹570.60 | −0.12% | +0.12% |
| 20 sessions Thu 19 Feb 2026 | ₹578.15 | +1.20% | +0.65% |
From the close of Thu 22 Jan 2026, ₹571.30: the close before the call day (the call's time is not on file). Adjusted daily closes; the move includes everything else that happened in those sessions.