Granules India's Q1 FY 2025-26 Quarterly Results

Result Summary

• Granules India Ltd reported a 4.1% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 3.8%.
• Its expenses for the quarter were up by 5.4% QoQ and 5.6% YoY.
• The net profit decreased 13.1% QoQ and decreased 16.3% YoY.
• The earnings per share (EPS) of Granules India Ltd stood at 4.6 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Granules India Ltd is a prominent pharmaceutical company in India, specializing in the production of active pharmaceutical ingredients (APIs), pharmaceutical formulations intermediates (PFIs), and finished dosages. The company is known for its extensive range of over-the-counter (OTC) products and generic medicines. Granules India has established a significant presence in the pharmaceutical industry, focusing on the manufacture of high-volume drugs. The company is headquartered in Hyderabad, India, and operates several manufacturing facilities in the country. As of the data available, there are no recent major developments or acquisitions disclosed for the company.

Revenue

In Q1FY26, Granules India Ltd reported a total income of ₹1,226.45 crores. This represents an increase of 4.1% compared to the previous quarter (Q4FY25), where the total income was ₹1,177.65 crores, and a year-over-year increase of 3.8% from Q1FY25, which stood at ₹1,181.93 crores. The steady growth in revenue indicates the company's ability to maintain its market position and generate consistent sales over the comparable periods. The increase in total income is a reflection of the company's efforts in expanding its product offerings and enhancing market penetration across its operating regions.

Profitability

Granules India Ltd's profitability metrics for Q1FY26 indicate a decrease in its bottom line. The profit before tax was recorded at ₹144.52 crores, which is a decline of 17.7% from the previous quarter (Q4FY25) where it stood at ₹175.64 crores, and a decrease of 20.3% year-over-year from Q1FY25, which was ₹181.44 crores. The profit after tax for Q1FY26 was ₹112.64 crores, marking a reduction of 13.1% from the previous quarter and a 16.3% decline year-over-year. The earnings per share also saw a reduction to ₹4.60 in Q1FY26 from ₹5.30 in Q4FY25 and ₹5.50 in Q1FY25, reflecting decreases of 13.2% and 16.4%, respectively. These figures suggest challenges in maintaining profit margins amidst rising expenses.

Operating Metrics

The operating expenses for Granules India Ltd increased to ₹1,056.02 crores in Q1FY26, which is a 5.4% rise from the previous quarter (₹1,002.02 crores) and a 5.6% increase year-over-year from Q1FY25 (₹1,000.49 crores). This increase in expenses has impacted the company's overall profitability, despite the growth in revenue. The tax expense for the quarter was ₹31.89 crores, showing a significant decrease of 30.7% from the previous quarter's ₹46.00 crores and a 31.8% decline from Q1FY25's ₹46.79 crores. The reduction in tax expenses may be attributed to various factors, including changes in tax regulations or adjustments in taxable income. The financial data suggests that the company is experiencing pressure on its operating costs, which may be affecting its profit margins.