Granules India Limited — PPTs, 12-08-2025: Investor Presentation

Here's the summary of Granules India Limited's Q1 FY26 earnings:

**1. Financial Highlights:**

Revenue climbed 3% YoY to ₹1,210.1 Cr. PAT declined 16% YoY to ₹112.6 Cr, impacted by litigation settlements. Gross Margin improved to 64.9%, but EBITDA margin softened due to higher manpower costs post-Senn Chemicals consolidation. Operating cash flow remained strong at ₹280.6 Cr.

**2. Strategic Initiatives & Growth Drivers:**

R&D spend was ₹67.8 Cr (5.6% of sales). A new R&D facility for peptide development is now operational in IIT, Hyderabad. Strategic expansion targets Controlled Substances, Oncology, and tech-based products including Peptides/CDMO.

**3. Business Developments:**

The Senn Chemicals AG acquisition added ₹29.1 Cr in revenue. Key facilities successfully cleared USFDA audits with only minor observations. North America showed YoY growth, Europe sequential growth; ROW sales were temporarily affected by supply backlog.

**4. Market Position & Competitive Advantage:**

The company leverages its vertically integrated platform for core products. Its R&D strength is evident with 91 US FDA approvals. Strong ESG commitment is highlighted by a Gold EcoVadis rating and improved CDP Climate score.

**5. Investor Implications:**

Despite a one-time PAT dip, healthy cash flow and strategic pivots into high-growth segments like Peptides/CDMO signal positive growth potential. Successful audits and a strong R&D pipeline enhance the long-term business case.