Granules India Limited — PPTs, 28-05-2025: Investor Presentation

1. Financial Highlights:

Granules posted Q4 revenue of ₹11,974 Mn, up 5% QoQ and 2% YoY, driven by growth in finished dosages despite pricing pressure in API/PFI. Gross margin improved to 63.4%, boosting EBITDA 10% QoQ to ₹2,524 Mn with a 21.1% margin. PAT surged 29% QoQ to ₹1,520 Mn, helped by higher EBITDA and a ₹308 Mn cybersecurity insurance claim. FY25 revenue stayed steady at ₹44,816 Mn with better gross (61.5%) and EBITDA margins (21.1%), lifting PAT by 11%. Operating cash flow strengthened to ₹8,666 Mn and net debt/EBITDA improved to 0.75x. Capex rose due to investments in GLS and CZRO projects.

2. Strategic Initiatives & Growth Drivers:

Granules expanded formulations capacity with a 7.5-billion dosage facility (GLS Phase II), focusing on high-margin and complex controlled substances. R&D spend increased to ₹2,377 Mn (~5.3% of sales) with a 405-strong team accelerating integrated product development. The company is deepening presence in North American OTC and Rx markets through new launches like lisdexamfetamine and combination painkillers.

3. Business Developments:

Acquisition of Swiss peptide CDMO Senn Chemicals AG strengthens biologics and peptide capabilities. New approvals in ADHD and pain management broaden product portfolio. Capacity was impacted by Gagillapur remediation but offset by a favorable product mix shift. Commercial excellence programs are being scaled to replicate US success in Europe and other markets.

4. Market Position & Competitive Advantage:

Granules benefits from an integrated API-to-FD manufacturing footprint aligned with “Make in India” and “Make in America” strategies. It leads in CNS/ADHD therapies and growing OTC segments through diversification and partnerships. Emphasis on backward integration, continuous manufacturing, and sustainability drives cost efficiencies and scale.

5. Investor Implications:

Positive growth potential hinges on formulation expansion, peptide CDMO integration, and margin improvement. Execution risks remain around US FDA remediation and pricing in API/PFI segments, but strong cash flows, reducing debt, and a robust new product pipeline support confidence. Monitoring remediation progress and product ramp-up pace is key for sustained profitability.