GRANULES INDIAGranules India Ltd. (currently trading at ₹557) is a Hyderabad-based pharmaceutical company specializing in high-volume, low-cost manufacturing of APIs, intermediates, and finished dosages. With vertically integrated operations and global regulatory approvals (USFDA, EDQM, TGA), Granules serves over 300 customers across 75+ countries. It is one of the world’s largest producers of Paracetamol, Ibuprofen, and Metformin, and is expanding into oncology, high-potency APIs, and controlled substances through its subsidiary Granules Life Sciences.
Granules India – FY22–FY25 Snapshot
• Sales – ₹3,280 Cr → ₹3,720 Cr → ₹4,180 Cr → ₹4,650 Cr Growth driven by finished dosages, US generics, and backward integration
• Net Profit – ₹360 Cr → ₹420 Cr → ₹490 Cr → ₹560 Cr Earnings supported by margin expansion and product mix
• Operating Performance – Strong → Strong → Strong → Strong EBITDA margins improving with scale and portfolio shift
• Dividend Yield (%) – 0.80% → 0.90% → 1.00% → 1.10% Steady payouts aligned with profit growth
• Equity Capital – ₹24.60 Cr (constant) No dilution; lean capital structure
• Total Debt – ₹820 Cr → ₹760 Cr → ₹700 Cr → ₹640 Cr Gradual deleveraging supported by internal accruals
• Fixed Assets – ₹1,280 Cr → ₹1,350 Cr → ₹1,420 Cr → ₹1,500 Cr Capex focused on oncology block, USFDA audits, and high-potency APIs
Institutional Interest & Ownership Trends
Promoter holding stands at 41.89%, with no pledging. FIIs and DIIs have actively accumulated citing US generics scale and oncology visibility. Delivery volumes reflect long-term positioning by pharma, export, and specialty API-focused funds.
Business Growth Verdict
Granules is scaling across finished dosages, oncology APIs, and US generics Margins improving due to backward integration and high-value molecules Debt is declining steadily with strong operating cash flows Capex supports long-term competitiveness and audit readiness
Management Con Call Highlights
• Q1 FY26 revenue rose 14.8% YoY to ₹1,180 Cr; PAT up 16.2% YoY to ₹145 Cr • Oncology block commissioned; 4 DMFs filed in US and EU • Paracetamol volumes stable; Metformin exports up 22% YoY • FY26 outlook: 12–15% revenue growth, margin retention, and PAT expected to cross ₹600 Cr
Final Investment Verdict
Granules India Ltd. offers a high-quality pharma compounding story built on scale, regulatory strength, and molecule depth. Its improving profitability, disciplined capital structure, and expanding therapeutic portfolio make it suitable for accumulation by investors seeking exposure to India’s generics, APIs, and specialty pharma supply chains. With strong execution, audit readiness, and oncology-led margin expansion, Granules remains a durable value creator in the global pharma ecosystem.
