Granules India Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Granules India Ltd-$ filed with BSE on 05 May 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 FY26 revenue of INR53,656 million, up 20% year-on-year, with EBITDA growing 25% to INR11,851 million and margins expanding to 22.1%. Q4 FY26 saw the peptide CDMO business, Ascelis/Senn Chemicals, turn EBITDA positive for the first time, while net debt reduced to INR4,021 million from INR7,061 million. Management described progress on U.S. FDA remediation at Gagillapur, regulatory inspections at other sites, and continued expansion of the finished dosage and complex generics portfolio.
Numbers mentioned
Revenue: INR53,656 million (FY26)
p. 6
“Revenue for the year stood at INR53,656 million, registering a 20% year-on-year growth.”
Mukesh Surana, page 6 of the filed PDF · View the filing
Revenue: INR14,706 million (Q4 FY26)
p. 6
“Revenue for the quarter was INR14,706 million, up 23% year-on-year and 6% sequentially, marking our sixth consecutive quarter of sequential growth.”
Mukesh Surana, page 6 of the filed PDF · View the filing
Gross margin: 65% (FY26)
p. 6
“FY '26 gross margin expanded to 65%, an improvement of 355 basis points year-on-year.”
Mukesh Surana, page 6 of the filed PDF · View the filing
Gross margin: 65.7% (Q4 FY26)
p. 7
“Q4 FY '26 gross margin improved to 65.7%, up 233 basis points year-on-year and 186 basis points quarter-on-quarter, with growth particularly from peptide CDMO converting into margin expansion.”
Mukesh Surana, page 7 of the filed PDF · View the filing
EBITDA: INR11,851 million (FY26)
p. 7
“EBITDA for FY '26 stood at INR11,851 million, up 25% year-on-year, with margins expanding by 100 basis points to 22.1%.”
Mukesh Surana, page 7 of the filed PDF · View the filing
EBITDA: INR3,521 million (Q4 FY26)
p. 7
“Q4 FY '26 EBITDA stood at INR3,521 million, growing 40% year-on-year and 14% quarter-on-quarter, with margins expanding to 23.9%.”
Mukesh Surana, page 7 of the filed PDF · View the filing
Peptide CDMO revenue: INR1,593 million (FY26)
p. 6
“This vertical added INR1,593 million revenue, contributing 3% of the overall revenue.”
Mukesh Surana, page 6 of the filed PDF · View the filing
PAT: INR5,950 million (FY26)
p. 7
“FY '26 PBT before exceptional items grew 26% year-on-year and PAT grew by 19% year-on-year to INR5,950 million post exceptional items.”
Mukesh Surana, page 7 of the filed PDF · View the filing
PAT: INR2,016 million (Q4 FY26)
p. 7
“And PAT grew by 33% year-on-year to INR2,016 million and 34% sequentially post exceptional items.”
Mukesh Surana, page 7 of the filed PDF · View the filing
Net debt: INR4,021 million (FY26)
p. 7
“Net debt reduced to INR4,021 million from INR7,061 million in FY '25.”
Mukesh Surana, page 7 of the filed PDF · View the filing
Net debt to EBITDA: 0.34x (FY26)
p. 7
“Net debt to EBITDA improved to 0.34x from 0.75x.”
Mukesh Surana, page 7 of the filed PDF · View the filing
R&D expenses: INR2,853 million (FY26)
p. 7
“R&D expenses for FY '26 was INR2,853 million, representing 5.3% of sales.”
Mukesh Surana, page 7 of the filed PDF · View the filing
Cash flow from operations: INR7,933 million (FY26)
p. 7
“FY '26 cash flow from operation was INR7,933 million compared to INR8,666 million in FY '25.”
Mukesh Surana, page 7 of the filed PDF · View the filing
Capex: INR5,547 million (FY26)
p. 7
“Full year FY '26 capex was INR5,547 million compared to INR5,700 million in FY '25.”
Mukesh Surana, page 7 of the filed PDF · View the filing
ROCE: 17.6% (Q4 FY26)
p. 7
“ROCE improved to 17.6% as compared to 16.8% in Q3 FY '26 and 16.6% in FY '25.”
Mukesh Surana, page 7 of the filed PDF · View the filing
Europe revenue growth: 81% (FY26 year-on-year)
p. 4
“Europe delivered strong growth of 81% year-on-year and now represents approximately 15% of total revenue.”
K.P. Chigurupati, page 4 of the filed PDF · View the filing
Working capital to sales: 33% (FY26)
p. 7
“Net working capital percentage to sales remained at 33% of sales, in line with FY '25, with higher working capital to support growth in FY '26.”
Mukesh Surana, page 7 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.
Peptide CDMO (Senn/Ascelis) profitability — PAT positive on annual basis · FY27
stated firmly by Sanjay Kumar
p. 6
“For FY '27, though, our focus is to deliver a PAT positive performance on an annual basis, while recognizing quarter-to-quarter variations inherent in a project-driven CDMO business like ours.”
Sanjay Kumar, page 6 of the filed PDF · View the filing
Capex — INR600-odd crores · FY27
stated firmly by Mukesh Surana
p. 9
“So we are talking about in the similar range of INR600-odd crores in the upcoming year.”
Mukesh Surana, page 9 of the filed PDF · View the filing
Remediation spend — FY27
stated firmly by Mukesh Surana
p. 10
“FY '27 onwards, it should be substantially lower, which has already come down Q3, Q4.”
Mukesh Surana, page 10 of the filed PDF · View the filing
Working capital to sales ratio — 33% range · FY27
stated as an aspiration by Mukesh Surana
p. 16
“But considering that, we would want to maintain our working capital to sales ratio of 33% range.”
Mukesh Surana, page 16 of the filed PDF · View the filing
Net debt — FY27
stated conditionally by Mukesh Surana
p. 11
“There can be a flattish net debt or a slight increase, depending upon the timing of the capex and increase in the growth.”
Mukesh Surana, page 11 of the filed PDF · View the filing
DCDA commercial plant capex — INR200 crores
stated conditionally by K.P. Chigurupati
p. 9
“So the project should cost somewhere around INR200 crores, and we'll freeze the numbers shortly.”
K.P. Chigurupati, page 9 of the filed PDF · View the filing
Lisdexamfetamine DEA quota — FY27
stated firmly by Priyanka Chigurupati
p. 14
“And even for FY '27, we expect the quota situation on this product to be as we budgeted for.”
Priyanka Chigurupati, page 14 of the filed PDF · View the filing
Controlled substance product launches outside U.S. — within the next couple of years
stated as an aspiration by Priyanka Chigurupati
p. 15
“So within the next couple of years, 1 or 2 years, we'll start seeing -- not 1 or 2 years, that's 2 years, we'll start seeing revenue from those products on the finished dosage side.”
Priyanka Chigurupati, page 15 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 said there were no price increases yet despite rising raw material costs, and that API growth came from new product launches rather than pricing.
Answered by K.P. Chigurupati
Asked by Harith Ahamed: Was there any pricing benefit behind the API segment's 33% growth, and what is the pricing environment for paracetamol and metformin given the West Asia situation?
p. 8
“Definitely, there were no price increases we wish we had, whereas raw material prices have gone up and are still going up.”
K.P. Chigurupati, page 8 of the filed PDF · View the filing
Management said individual quarters may vary but the direction is towards sustained annual profitability.
Answered by Sanjay Kumar
Asked by Harith Ahamed: Is the Ascelis Peptides EBITDA breakeven performance sustainable into coming quarters?
p. 8
“So the direction of travel is firmly towards annual EBITDA and PAT positivity.”
Sanjay Kumar, page 8 of the filed PDF · View the filing
Management attributed the improvement to strong CDMO growth and said future margin guidance is uncertain given cost pressures.
Answered by Mukesh Surana
Asked by Shashank Krishnakumar: What drove the sharp quarter-on-quarter gross margin expansion and how should FY27 gross margins be viewed given rising input costs?
p. 9
“So quarter-on-quarter, sequential gross margin improvement is primarily because of CDMO business, which has significantly grown from INR33 crores to INR70 crores, where the VA percentage gross margin percentage is significantly higher.”
Mukesh Surana, page 9 of the filed PDF · View the filing
Management confirmed remediation spend of over INR50 crores in FY26 concentrated in H1, expected to fall substantially in FY27.
Answered by Mukesh Surana
Asked by Shashank Krishnakumar: What is the cumulative remediation spend for FY26 and expected level going forward?
p. 10
“Cumulatively, only the remediation expenses we have incurred close to INR50-plus crores in the current year.”
Mukesh Surana, page 10 of the filed PDF · View the filing
Management said capacity build is demand-linked and not speculative, and customer base is spread across double-digit customers rather than concentrated.
Answered by Sanjay Kumar
Asked by Sajal Kapoor: What proportion of CDMO capacity is tied to committed programs, and what is customer concentration like?
p. 11
“Our approach towards capex deployment is always demand-linked.”
Sanjay Kumar, page 11 of the filed PDF · View the filing
Management named regulatory timelines and execution quality as the primary constraint.
Answered by K.P. Chigurupati
Asked by Sajal Kapoor: What is the single biggest constraint to scaling the business over the next 2-3 years?
p. 12
“It's mainly regulatory timelines and execution -- the quality of execution.”
K.P. Chigurupati, page 12 of the filed PDF · View the filing
Management said activities are essentially complete and they are ready for an audit anytime, but cannot predict FDA's timing.
Answered by Priyanka Chigurupati
Asked by Krisha Kansara: When is the FDA reinspection of Gagillapur expected and how confident is management of clearing it?
p. 14
“From our side, we've notified them that the activities are essentially complete. But now, I don't think we can estimate when they would walk in, but we're ready for an anytime audit.”
Priyanka Chigurupati, page 14 of the filed PDF · View the filing
Management said the funds are for strengthening the balance sheet and funding organic and inorganic growth.
Answered by Mukesh Surana
Asked by Ritwik Sheth: What are the plans for deploying the funds raised from the promoter and QIP?
p. 15
“We have clarified in our EGM as well as last earnings call, this is to strengthen the balance sheet and also invest for organic as well as inorganic growth.”
Mukesh Surana, page 15 of the filed PDF · View the filing
Management cited the overall addressable market and said filings are increasingly moving toward complex products in controlled substances and oncology.
Answered by Priyanka Chigurupati
Asked by Shreya Chatterjee: Can you give the market size for controlled substances and oncology pipeline over the next 3-5 years?
p. 16
“See, the market size is heavily -- I think in the investor presentation, we said 41 billion$ as the TAM.”
Priyanka Chigurupati, page 16 of the filed PDF · View the filing
Risks flagged
Rising raw material, packaging and freight prices amid geopolitical uncertainty
p. 10
“There are inventories, and we can wait for a while. It's not going to be overnight price increases.”
K.P. Chigurupati, page 10 of the filed PDF · View the filing
Chinese competition undercutting pricing in DCDA project
p. 9
“But then, what has happened during the process is, the Chinese competition, they started reducing prices drastically.”
K.P. Chigurupati, page 9 of the filed PDF · View the filing
Uncertainty over timing of FDA reinspection at Gagillapur
p. 14
“We can't read the FDA's mind, right?”
Priyanka Chigurupati, page 14 of the filed PDF · View the filing
Quarter-to-quarter variability inherent in project-driven CDMO business
p. 8
“Individual quarters may vary, depending on customer milestone and shipment timing, but the platform is now far more execution-led and operationally aligned than before.”
Sanjay Kumar, page 8 of the filed PDF · View the filing
Cost escalation creating uncertainty for working capital and margins
p. 16
“This is, of course, uncertain period, Shreya. So the cost escalations are currently there.”
Mukesh Surana, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.