Granules India Q4 Results: Revenue Flat, Margins Narrow, Net Profit Up 18%

Granules India reported its financial results for the March quarter on Wednesday, 28 May 2025. The company posted a modest revenue growth of 1.8% year-on-year, reaching ₹1,197.5 crore compared to ₹1,175 crore in the same quarter last year.

However, EBITDA fell by 1.4% year-on-year to ₹252 crore. The operating margin also slipped to 21.1%, down from 21.8% in the corresponding period a year ago.

Despite the muted revenue and margin performance, Granules India’s net profit rose 18% year-on-year to ₹152 crore.

North America Drives Growth

The North American market remained a key revenue driver, contributing 79% to the overall topline, up from 70% in the same period last year. The formulations segment grew by 18% during the quarter, offering some support to the company’s overall performance.

Gagillapur Facility

Granules India has been under scrutiny due to its Gagillapur facility, which received a warning letter from the United States Food and Drug Administration (USFDA) in February. The warning followed an inspection conducted in August last year.

The letter highlighted several issues, including contamination, inadequate cleaning, poor maintenance, and torn records. The facility accounts for up to 65% of the company’s consolidated sales.

"Productivity of Gagillapur facility has been lower in H2FY25 with ongoing remediation activities," told Krishna Prasad Chigurupati, Chairman & MD of Granules India to CNBC TV-18.

Financial Position and Outlook

The company reported a net debt of ₹706.1 crore, a reduction of ₹136 crore from the previous level. The net debt-to-EBITDA ratio stood at 0.75x, suggesting a relatively stable financial position.

During the previous earnings call, the management indicated that revenues are expected to stabilise. They also mentioned that upcoming product launches should support future growth.

Granules India Share Price Movement

On 28 May 2025, Granules India share price opened at ₹530.00, up from the previous close of ₹528.80. By the end of the trading session, the stock settled at ₹521.20 on the NSE. The company’s 52-week high was ₹721.00 on 30 August 2024, while the 52-week low was ₹401.25 on 4 June 2024.

Conclusion

Granules India delivered a mixed performance in the March quarter of FY25. While net profit showed a decent rise, revenue and margin growth remained under pressure. The Gagillapur facility’s compliance challenges continue to be a concern, but the company remains focused on remediation efforts and product launches to support future performance.

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