Granules India Reports 34% Revenue Growth in Q2 FY26 Earnings Call
Filing Summary
Granules India Ltd conducted its Q2 FY26 earnings conference call, reporting a 34% increase in revenue to Rs. 12,970 million, driven by growth in the formulation business in North America and Europe. The company is in the final stages of U.S. FDA remediation at its Gagillapur facility, with a meeting scheduled in January 2026. The company also highlighted the progress of its peptide CDMO platform, Ascelis Peptides, and its integration with Senn Chemicals. Granules India aims to enhance its manufacturing capabilities and expand its market presence in the U.S. and Europe.
Granules India Ltd held its Q2 FY26 earnings conference call on November 13, 2025. The company reported a 34% increase in revenue, reaching Rs. 12,970 million, compared to Rs. 9,666 million in Q2 FY25. This growth was primarily attributed to the formulation business in North America and Europe. The company paused production at its Gagillapur plant in Q2 FY25 due to U.S. FDA observations but has since resumed operations.
The financial performance for the quarter showed a gross margin of 65.7%, an improvement of 368 basis points year-on-year. The EBITDA for the quarter was Rs. 2,782 million, representing 21.5% of sales, an increase from Rs. 2,033 million in Q2 FY25. The company incurred an EBITDA loss of Rs. 200 million from Ascelis Peptides. R&D expenses were Rs. 705 million, accounting for 5.4% of sales. Net debt increased to Rs. 10,241 million due to higher CAPEX spends, which totaled Rs. 2,112 million for the quarter.
Operationally, Granules India is in the final stages of U.S. FDA remediation at its Gagillapur facility, with a meeting scheduled with the FDA in January 2026. The company has achieved multiple regulatory milestones, including a GMP certificate from German authorities and an EU GMP certificate from Denmark. The GPI site in Chantilly, Virginia, received an Establishment Inspection Report from the U.S. FDA. The Greenfield GLS facility at Genome Valley, Hyderabad, received U.S. FDA approval for a product following a pre-approval inspection.
The timeline for the U.S. FDA remediation at Gagillapur includes a scheduled meeting in January 2026. The company continues to submit monthly progress reports, with the latest update provided on October 31, 2025. The remediation is expected to conclude in the near future, enabling new product approvals and supporting growth in the formulation business.
The management team involved in the earnings call included Dr. Krishna Prasad Chigurupati, Chairman and Managing Director; Ms. Priyanka Chigurupati, Executive Director; Mr. Mukesh Surana, Chief Financial Officer; Dr. P. V. Srinivas, Chief Technology Officer; and Mr. Sanjay Kumar, Chief Strategy Officer. The call was moderated by Mr. Irfan Raeen from MUFG.
Granules India is focusing on expanding its market presence in the U.S. and Europe. The company has commenced supplies of monograph products to the U.S. and plans to ramp up prescription product supplies following FDA approval. The company is also targeting growth in the CNS-ADHD segment from its GPI facility in the U.S. and scaling up large volume products in the U.S. and Europe.
Granules India Ltd is a pharmaceutical company engaged in the manufacturing and marketing of finished dosages, pharmaceutical formulation intermediates, and active pharmaceutical ingredients. The company is focused on expanding its manufacturing capabilities and enhancing its market presence in key regions, including the U.S. and Europe.