Granules India delivered impressive first quarter FY27 results, with consolidated net profit surging 60% year-on-year to ₹180 crore from ₹112.6 crore in the corresponding quarter last year. According to the latest exchange filing, the Hyderabad-based drugmaker's revenue from operations grew 22% to ₹1,476.8 crore from ₹1,210 crore during Q1 FY26. The company's EBITDA increased by 37.4% to ₹338.9 crore from ₹246.6 crore in the same quarter last year, demonstrating strong operational efficiency. EBITDA margin improved by 250 basis points to 22.9%, indicating improved operational leverage and cost management. Profit before tax stood at ₹240.4 crore, up 66.4% from ₹144.5 crore in Q1 FY26, further highlighting the company's strong operational performance. However, it should be noted that Q1 FY26 results also included a one-off loss of ₹25.9 crore, making the current year-on-year comparison more favorable. As per Emkay Global Financial's research report dated July 22, 2026, the company's EBITDA and PAT were ahead of estimates by 7% and 11% respectively, primarily driven by a beat in gross margin.
The company's revenue share from North America declined to 72% in Q1 FY27 from 77% in Q1 FY26, while revenue share from Europe improved to 16% from 13% in the previous year. According to the latest data, finished dosages (FD) contribute 74% of revenue, followed by Active Pharmaceuticals Ingredients (API) at 13%, Pharmaceutical Formulation Intermediates (PFI) at 9%, and Peptides CDMO at 4% of revenue from operations respectively for Q1 FY27. This diversified portfolio across different product categories and geographic markets demonstrates the company's strategic focus on reducing dependence on any single segment. As per Emkay Global Financial's analysis, the continued increase in the share of complex generics in formulation sales (~50% in Q1FY27 vs ~39% in the base quarter) is a key driver of gross margin outperformance, largely a consequence of sustained momentum in the company's controlled substance portfolio.
During the quarter, Granules India received ₹365.6 crore on February 23, representing 25% of the total consideration for warrants. According to CNBC TV18, the company issued 2.5 crore convertible warrants at ₹585 apiece, with each warrant giving holders the right to buy one equity share convertible within 18 months of allotment. The last date for conversion is August 2027. Previously, in early June 2026, the company's shares rose after receiving an Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA) for its facility in Chantilly, Virginia.
The company's net debt stood at ₹101 crore, representing a significant reduction of ₹84.67 crore from Q1 FY26, with net debt to EBITDA ratio at 0.07 times. As reported by CNBC TV18, when compared to the previous quarter, EBITDA increased by 39.6% with a margin of 23.9%. Chairman & Managing Director Krishna Prasad Chigurupati emphasized the company's focus on regulatory and quality excellence, portfolio transformation toward complex and differentiated products, geographic and customer diversification, while continuing investments in R&D, digitalization, operational excellence, sustainability and talent to support long-term value creation. He noted that while external cost pressures and supply chain volatility require continuous management for the next couple of quarters, the company is continuing to invest in these key areas. According to Emkay Global Financial's outlook, the company is expected to generate cumulative free cash flow of ~₹14 billion over FY26-29E with a PAT CAGR of ~27% over this period.
Following the results announcement, shares of Granules India rose 2% to ₹893.10 on the NSE, demonstrating positive market response to the strong quarterly performance. However, the stock shed 0.55% to end at ₹871.10 on the BSE today, indicating mixed market sentiment despite the strong fundamentals. This compares to a 0.30% fall in the NSE Nifty 50 Index, indicating investor confidence in the company's growth trajectory and operational improvements. The stock has demonstrated strong performance with gains of 76.93% in the last 12 months and 46.18% year-to-date, reflecting sustained investor interest despite some profit-taking at recent highs. Emkay Global Financial has issued a buy rating with a target price of ₹950, representing a 6% increase from the previous target of ₹900. The brokerage expects the Genome Valley facility to approach 50%+ utilization by end-FY27 and notes that Senn (peptide CDMO) will be profitable in FY27. Total traded volume stood at 1.23 times its 30-day average with the relative strength index at 60.59, indicating continued market interest in the pharmaceutical company's diversified portfolio and operational excellence.
