Granules India Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript Granules India Ltd-$ filed with BSE on 27 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Granules India reported Q1 FY27 revenue of about Rs 1,477 crore, up 22% year-on-year, with EBITDA growing 37% to Rs 339 crore and profit after tax up 60% to Rs 180 crore. Management said complex generics now form about 50% of finished dosages compared to 39% a year earlier, and the peptide CDMO business grew more than 100% year-on-year. The company also stated that remediation work at its Gagillapur facility is essentially complete, with the FDA having raised no concerns on the pace or adequacy of corrective actions to date.
Numbers mentioned
Revenue: INR1,477 crores (Q1 FY27)
p. 4
“Revenue grew 22% over last year to about INR1,477 crores.”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
Gross margin: 65.6% (Q1 FY27)
p. 4
“Gross margin stayed healthy at around 65.6% and EBITDA grew 37% to INR339 crores”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
EBITDA: INR339 crores (Q1 FY27)
p. 4
“Gross margin stayed healthy at around 65.6% and EBITDA grew 37% to INR339 crores, and profit after tax grew 60% to INR180 crores”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
Profit after tax: INR180 crores (Q1 FY27)
p. 4
“profit after tax grew 60% to INR180 crores, but the number I'm most pleased with is our return on capital, which has improved to 18%”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
Return on capital: 18% (Q1 FY27)
p. 4
“the number I'm most pleased with is our return on capital, which has improved to 18%”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
Net debt to EBITDA: 0.07x (Q1 FY27)
p. 4
“Our net debt to EBITDA is now almost nothing, 0.07x.”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
Operating cash generated: INR387 crores (Q1 FY27)
p. 4
“we generated over INR387 crores of operating cash this quarter”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
Complex generics share of finished dosages: 50% (Q1 FY27)
p. 4
“Complex generics, which were around 39% of our finished dosages a year ago are now 50%.”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
Peptide CDMO growth: more than 100% (Q1 FY27 vs last year)
p. 4
“our newest engine, the peptide CDMO built around Senn grew more than 100% over last year”
K. P. Chigurupati, page 4 of the filed PDF · View the filing
Revenue: INR14,768 million (Q1 FY27)
p. 5
“Q1 FY27 revenues stood at INR14,768 million, up 22% year-on-year and broadly stable sequentially over good Q4.”
Mukesh Surana, page 5 of the filed PDF · View the filing
Gross margin expansion: 74 basis points year-on-year (Q1 FY27)
p. 6
“Gross margin was healthy at 65.6% and expansion of 74 basis points year-onyear, led by complex generic and higher value formulations enriched our product mix.”
Mukesh Surana, page 6 of the filed PDF · View the filing
EBITDA: INR3,389 million, margin 22.9% (Q1 FY27)
p. 6
“EBITDA was INR3,389 million, up 37% year-on-year at a margin of 22.9%, an expansion of around 256 basis points.”
Mukesh Surana, page 6 of the filed PDF · View the filing
R&D expenses: INR880 million, about 6% of sales (Q1 FY27)
p. 6
“R&D expenses were INR880 million, about 6% of sales and up 30% year-on-year.”
Mukesh Surana, page 6 of the filed PDF · View the filing
PBT before exceptional items: INR2,404 million, up 41% (Q1 FY27)
p. 6
“PBT before exceptional items grew 41% to INR2,404 million year-on-year basis.”
Mukesh Surana, page 6 of the filed PDF · View the filing
Net debt: INR1,012 million (Q1 FY27)
p. 6
“Net debt stands at INR1,012 million in Q1 FY27 from INR4,021 million at FY26 close.”
Mukesh Surana, page 6 of the filed PDF · View the filing
Net working capital to sales: 29% (Q1 FY27)
p. 6
“Net working capital to sales improved to 29% in Q1 FY27 as compared to 30% in Q1 FY26 and Q4 FY26.”
Mukesh Surana, page 6 of the filed PDF · View the filing
Operating cash flow: INR3,874 million (Q1 FY27)
p. 6
“Operating cash generated from Q1 FY27 is INR3,874 million compared to INR1,003 million in Q4 FY26.”
Mukesh Surana, page 6 of the filed PDF · View the filing
Capex: INR890 million (Q1 FY27)
p. 6
“Capex spent on Q1 FY27 is INR890 million compared to INR1,000 million in Q4 FY26.”
Mukesh Surana, page 6 of the filed PDF · View the filing
ROCE: 18% (Q1 FY27)
p. 7
“ROCE stood at healthy 18% on a steady upward trajectory compared to 17.6% in Q4 FY26.”
Mukesh Surana, page 7 of the filed PDF · View the filing
Peptide CDMO revenue: CHF5 million (Q1 FY27)
p. 5
“Q1 performance was broadly in line with our expectation at CHF5 million.”
Sanjay Kumar, page 5 of the filed PDF · View the filing
GPI global generic ranking: 27th position
p. 3
“In the U.S. our own manufacturing company, GPI, has moved up to the 27th position among all U.S. generic companies from 74th just 5 years ago.”
K. P. Chigurupati, page 3 of the filed PDF · View the filing
GPI capacity utilization: around 70%
p. 16
“We are currently at around 70% capacity utilization.”
K. P. Chigurupati, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Full-year capex — INR600 crores · FY27
stated firmly by Mukesh Surana
p. 7
“So rest of the year, we have guided earlier INR600 crores. We still remain INR600 crores, INR89 crores is already spent.”
Mukesh Surana, page 7 of the filed PDF · View the filing
EBITDA margin — 22% to 23%
stated firmly by K. P. Chigurupati
p. 7
“Yes, Nishita. We expect that to continue.”
K. P. Chigurupati, page 7 of the filed PDF · View the filing
Peptide CDMO profitability — PAT positive · FY27
stated firmly by Sanjay Kumar
p. 5
“As stated earlier, our focus for FY27 remains delivering a PAT positive performance on an annual basis, while recognizing the quarter-to-quarter variability inherent in a project-driven CDMO business.”
Sanjay Kumar, page 5 of the filed PDF · View the filing
Peptide CDMO revenue — 5x revenue in 5 years · 5 years
stated as an aspiration by Sanjay Kumar
p. 9
“our approach towards peptide CDMO is never incremental, but it's a multiplier, and we have stated out a goal of 5x revenue in 5 years”
Sanjay Kumar, page 9 of the filed PDF · View the filing
Peptide CDMO revenue milestone — USD 50 million revenue with 30% plus EBITDA · mid of third year from now
stated as an aspiration by Sanjay Kumar
p. 9
“So that's very clear, USD 50 million revenue with 30% plus EBITDA, somewhere in the third year from now, mid of third year from now, should be our run rate.”
Sanjay Kumar, page 9 of the filed PDF · View the filing
GLS facility utilization — cross 50% · by year-end
stated conditionally by Mukesh Surana
p. 14
“And Yashika on the second question onGLS, currently, the utilization levels are very low. By the year-end, we are expecting it will cross 50%.”
Mukesh Surana, page 14 of the filed PDF · View the filing
Genome Valley utilization — more than 50%, 60% · by end of the year
stated conditionally by K. P. Chigurupati
p. 8
“Yes, Genome Valley facility is scaling up. And by the end of the year, when I say optimal, it's not that we are close to full capacity, but maybe more than 50%, 60%.”
K. P. Chigurupati, page 8 of the filed PDF · View the filing
R&D spend as % of sales — 5.5% to 6%
stated firmly by K. P. Chigurupati
p. 14
“This will be around 5.5% to 6% as we go ahead.”
K. P. Chigurupati, page 14 of the filed PDF · View the filing
U.S. product launches — about 9 launches · FY27
stated conditionally by Priyanka Chigurupati
p. 12
“This year, if -- pending the FDA approval, we are expecting about 9 launches.”
Priyanka Chigurupati, page 12 of the filed PDF · View the filing
Peptide intermediate and API capex in India — roughly INR100 crores for intermediate, INR200 crores for API
stated as an aspiration by Sanjay Kumar
p. 13
“our initial estimates suggest roughly about INR100 crores numbers on the intermediate side, and if you take it forward to the API side, we are starting with INR200 crores of investment plan.”
Sanjay Kumar, page 13 of the filed PDF · View the filing
GPI expansion — by end of '28
stated conditionally by K. P. Chigurupati
p. 16
“We are also doing a little bit of expansion, which we think we will need by end of '28.”
K. P. Chigurupati, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management expressed confidence growth would continue without giving a specific number.
Answered by K. P. Chigurupati
Asked by Nishita Shanklesha: What growth can be expected for FY27 overall given the recent growth trajectory?
p. 7
“Nishita, we are quite excited and positive that the growth will continue. It's -- yes, we are confident it will continue.”
K. P. Chigurupati, page 7 of the filed PDF · View the filing
Management confirmed RM pressures exist but said the mix shift is helping and expected to continue.
Answered by K. P. Chigurupati
Asked by Shashank Krishnakumar: Will the favorable mix shift to complex generics offset raw material cost pressures on gross margins?
p. 7
“Yes. You've got it right. Shashank, the RM pressures are quite high. There's a lot of challenges we are facing. But like you said, the mix is really helping us.”
K. P. Chigurupati, page 7 of the filed PDF · View the filing
Management cited the sodium oxybate first-to-file filing as proof of capability-driven wins.
Answered by K. P. Chigurupati
Asked by Sajal Kapoor: Can management give an example where Granules won business on capability rather than cost?
p. 9
“the biggest proof is if you -- if I may say so, is the sodium oxybate filing, which we did recently, which is sole first to file.”
K. P. Chigurupati, page 9 of the filed PDF · View the filing
Management said the milestone is $50 million revenue with 30%+ EBITDA and three $10 million-plus customer wins.
Answered by Sanjay Kumar
Asked by Sajal Kapoor: What milestone would indicate the peptide CDMO platform has become structurally self-sustaining?
p. 9
“So that's very clear, USD 50 million revenue with 30% plus EBITDA, somewhere in the third year from now, mid of third year from now, should be our run rate.”
Sanjay Kumar, page 9 of the filed PDF · View the filing
Management attributed it to lower working capital needs and reduced receivable days in the U.S.
Answered by Mukesh Surana
Asked by Tushar Manudhane: What explained the significant rise in operating cash flow this quarter?
p. 9
“we have not only increased little inventory, but actually substantially reduced the receivables with the higher sales in U.S.A. So the receivable days of U.S.A is better.”
Mukesh Surana, page 9 of the filed PDF · View the filing
Management attributed the swing to project-to-product mix and long project cycle times rather than a one-off cost.
Answered by Sanjay Kumar
Asked by Krisha Kansara: Why did the peptide business post a loss this quarter versus positive EBITDA last quarter?
p. 12
“there's not a big one-off there on the quarter. It's more a question of project to product mix.”
Sanjay Kumar, page 12 of the filed PDF · View the filing
Management said no launches in FY27, with 1-2 launches expected starting FY28 given ongoing litigation.
Answered by Priyanka Chigurupati
Asked by Ritwik Sheth: What is the controlled substance launch pipeline for FY27 and FY28?
p. 14
“On controlled substances, we have about 1 to 2 launches coming up in the next year, 1.5 years to 2 years.”
Priyanka Chigurupati, page 14 of the filed PDF · View the filing
Management said it was a mix of intentional hold of supply due to pricing pressure and controlled growth in new areas awaiting approvals.
Answered by Priyanka Chigurupati
Asked by Suhani Singh: What drove sequential softness in Europe this quarter?
p. 15
“it's primarily been a mix of intentional hold of supply due to pricing and costing pressures.”
Priyanka Chigurupati, page 15 of the filed PDF · View the filing
Management said two ANDAs have been filed along with dossiers and extensions in other countries.
Answered by Priyanka Chigurupati
Asked by Sameer Baisiwala: How many oncology ANDAs has the company filed so far?
p. 16
“We have filed 2 ANDAs so far. But 2 ANDAs -- we filed one ANDA in the U.S., 2 ANDA -- 2 dossiers in Europe, and we find about almost 14 extensions of the same dossier in various countries.”
Priyanka Chigurupati, page 16 of the filed PDF · View the filing
Management said they would remain within a range and that receivable days may rise slightly going forward even as they try to control working capital.
Answered by K. P. Chigurupati
Asked by Vignesh Iyer: Does the company still target 33% working capital to sales or can it sustain the lower FY26 level?
p. 17
“So what we've said in the last earning call is in the range. So we would be in the range is what we have said.”
K. P. Chigurupati, page 17 of the filed PDF · View the filing
Risks flagged
Geopolitical tensions in West Asia causing inflation in raw materials, packing inputs and freight
p. 6
“the operating environment continues to be influenced by geopolitical tensions in West Asia leading to inflation in select raw materials, packing inputs, freight and broadly supply chain costs”
Mukesh Surana, page 6 of the filed PDF · View the filing
Gagillapur facility remains under FDA warning letter pending clearance, delaying new product approvals
p. 11
“The only thing that stopped was approval of new products, which we hope will resume immediately after the FDA visits us, and we're very positive about a positive outcome.”
Priyanka Chigurupati, page 11 of the filed PDF · View the filing
Cost pressures limiting ability to pass on pricing to legacy customers in Europe
p. 15
“there have been situations where we couldn't pass on very much of the pricing. So we held some of the demand in conversation with our customers.”
Priyanka Chigurupati, page 15 of the filed PDF · View the filing
Long project cycle times in peptide CDMO business causing quarterly profitability variability
p. 12
“some of the projects that we do is fairly long in its cycle time and lead time. So some of the projects that we do does not get monetized during the current quarter, it gets carried forward”
Sanjay Kumar, page 12 of the filed PDF · View the filing
Litigation uncertainty affecting timing of controlled substance product launches
p. 17
“Unfortunately, these are all litigation-based products. I'm not -- I do not have the freedom to talk about these products, the time lines, etc.”
Priyanka Chigurupati, page 17 of the filed PDF · View the filing
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