Granules India Limited (GRANULES)
Large CapPharma stocks · Large cap · NSE
Granules India is a vertically integrated pharmaceutical company manufacturing APIs, PFIs, and FDs. It is strategically transforming its portfolio towards complex and differentiated products, expanding its geographic footprint, and scaling new growth engines like Peptide CDMO and Oncology, primarily targeting regulated markets.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 90/100Rev +22% YoY · PAT +59% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,477 Cr | +22.1% | +0.4% |
| EBITDA | ₹339 Cr | +37.2% | -3.7% |
| Operating margin | 23.0% | +300 bps | -100 bps |
| PAT | ₹180 Cr | +59.3% | -10.9% |
| PAT margin | 12.2% | +285 bps | -154 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Granules India reported robust Q1 FY27 results with revenue up 22% YoY to ₹14,768 Mn, PAT surging 60% YoY to ₹1,800 Mn, and EBITDA growing 37% YoY to ₹3,389 Mn. Gross margin expanded to 65.6% (+74 bps YoY) driven by a higher Complex Gx mix.
Granules' Q1 FY27 performance indicates strong execution of its strategy to pivot towards complex and differentiated products, which now comprise 50% of FD revenue. This shift is driving margin expansion and healthy cash flow. While external cost pressures persist, the company's focus on R&D and capacity expansion supports long-term value creation, reinforcing the investment thesis.
Revenue by Segment (Q1 FY27)
Latest issuer-disclosed distribution across 4 reported categories.
Complex Generics Scale-up
Complex Gx mix now 50% of FD portfolio, up from 39% YoY, driving gross margin expansion and strengthening business quality.
Peptide CDMO Ramp
Senn Chemicals (acquired Apr 2025) achieved EBITDA breakeven in Q4FY26. Ascelis Peptides subsidiary is driving the R&D pipeline.
Geographic Diversification
Europe and regulated ex-North America markets are emerging as next growth engines, backed by expanding dossiers and complex launches.
Oncology Pipeline
Dedicated oncology OSD plant in Vizag with a separate API block, targeting high-value oncology molecules for long-term growth.
Genome Valley GLS Facility
The 10Bn dosages Genome Valley GLS facility is USFDA approved, with Rx products shipments having commenced. This increases formulation capacity by 40%.
Quality & Digitalization Capex
Planned investment of Rs.750 Mn over the next two years for phased facility upgradation, focusing on automation and digitalization initiatives within Quality operations.
Portfolio Transformation
Shift towards Complex Gx (50% of FD revenue) is strengthening the quality of business and driving margin expansion.
Geographic Diversification
Higher revenue growth in Europe (+51% YoY) and Rest of World (+56% YoY) is maximizing return on R&D capital.
Strong Balance Sheet
Net Debt/EBITDA improved to 0.07x from 0.34x, providing financial flexibility to fund growth and navigate market uncertainties.
External Cost Pressures
Management states external cost pressures require continuous management for the next couple of quarters.
Supply Chain Volatility
Management notes supply chain volatility requires continuous management for the next couple of quarters.
Peptides CDMO Loss
Peptides CDMO had an EBITDA loss of ₹124Mn in Q1FY27, compared to a positive EBITDA of ₹15Mn in Q4FY26.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is primary for assessing the impact of strategic shifts like portfolio transformation and geographic diversification on overall growth and margins. QoQ is relevant for monitoring sequential momentum, particularly in EBITDA and PAT, and segment-specific performance.
US/Export Growth (YoY)
North America revenue grew +13% YoY, Europe +51% YoY, and ROW +56% YoY, indicating strong diversification beyond the US market.
Launch Pipeline & Approvals
5 FD and 4 API filings in Q1FY27; 25 ANDAs under approval with a total addressable market of ~$40Bn in the US. 100 dossiers approved, 3 tentatively approved.
USFDA Observations
GPI received a VAI-classified FDA EIR for its April 2026 inspection. Gagillapur April 2026 TGA Australia inspection closed with no critical findings.
R&D Spend
R&D investment increased to ₹880 Mn in Q1FY27, representing 6.0% of sales, up from 5.6% in Q1FY26, supporting a high-value pipeline.
Regulatory & Quality Excellence
Management's focus remains firmly on regulatory and quality excellence across operations.
Portfolio Transformation
Focus on portfolio transformation toward complex and differentiated products for long-term value creation.
Geographic & Customer Diversification
Management emphasizes geographic and customer diversification to enhance business resilience.
Scaling New Growth Engines
Continuing to invest in R&D, digitalization, and talent to support scaling new growth engines.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Complex Gx share of FD revenue | 50% | Continued increase in Complex Gx contribution to FD revenue, indicating successful portfolio transformation. |
| Peptides CDMO EBITDA | ₹124Mn loss in Q1FY27 | Return to positive EBITDA and sustained ramp-up in line with project milestones and services. |
| R&D investment as % of sales | 6.0% | Sustained or increasing R&D investment to seed a high-value pipeline and future growth opportunities. |
| Net Debt/EBITDA | 0.07x | Maintenance of capital discipline and strong balance sheet to fund growth without significant leverage. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
57NeutralSMA20 -1.4% / mo · MACD − · near 52W high · sector +2.2pp vs Nifty (3M)
Technical chart
GRANULESdaily · 1Y · AUTO+48.0%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 52. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~1.4% over last month) — short-term momentum negative.
- RSI(14) at 52 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 7% off 52W high · 66% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 15.9% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +5.3%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 36 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 36 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 8/15 to the score.
- Quality contributes 10/20 to the score.
Main drags
- Fair-value margin of safety is negative at -255.6%.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
- Growth is weaker at 7/25; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 88th percentile of the scored universe and 83rd percentile within Pharma. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 83rd pctile, median 70 · Large: 74th pctile, median 73
131 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.2%.
- ▸7 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 32.30
- P/B
- 4.14
- EV/EBITDA
- 14.23
- Market Cap
- 21021.00Cr
Profitability
- ROE
- 13.80%
- ROCE
- 15.50%
- ROA
- 8.62%
- Dividend Y
- 0.21%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 2.00%
- Revenue 3Y
- 6.00%
- EPS 3Y
- 5.00%
Balance Sheet
- Debt/Equity
- 0.30
- Interest Coverage
- 11.40×
- Altman Z
- 7.30
- Book Value
- 205.00
Cash Flow
- FCF Yield
- 0.17%
- FCF Positive Y
- 7/5
- OCF
- 793.00 Cr
- EPS TTM
- 26.96
Shareholding
- Promoter Hold
- 38.01%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 84%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Pharma, ranked by similarity
Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.