GRANULES
Large CapGranules India Limited
Pharma
Granules India Limited is a vertically integrated pharmaceutical company manufacturing APIs, PFIs, and Finished Dosages. It focuses on regulated markets like North America and Europe, with a strategic pivot towards Complex Generics and Peptide CDMO to drive higher-value growth.
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 31 Mar 2026
Excellent · 90/100Rev +23% YoY · PAT +33% YoY · margin expansion · +6% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,471 Cr | +22.9% | +6.0% |
| EBITDA | ₹352 Cr | +39.7% | +14.3% |
| Operating margin | 24.0% | +300 bps | +200 bps |
| PAT | ₹202 Cr | +32.9% | +34.7% |
| PAT margin | 13.7% | +103 bps | +292 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
FY26 revenue surpassed ₹50,000 Mn with 20% YoY growth; EBITDA grew 25% YoY to ₹11,851 Mn, and PAT rose 19% YoY to ₹5,950 Mn, driven by gross margin expansion and product mix upgrade. Q4FY26 also showed strong YoY and QoQ growth.
Granules delivered strong FY26 results, exceeding ₹50,000 Mn revenue, driven by a favorable product mix shift to Complex Gx and new CDMO revenue. Margin expansion and improved capital efficiency are positive, but working capital intensity rose in Q4. The strategic pivot to high-barrier segments and geographic diversification supports long-term growth.
FY26 Revenue by Segment
Latest issuer-disclosed distribution across 4 reported categories.
Complex Generics Scale-up
Complex Gx share in FD moved to 43% from 31% in just one year (+1200 bps YoY in FY26).
Peptide CDMO Ramp
Senn Chemicals acquired Apr 2025, achieved breakeven in Q4FY26, driving R&D pipeline for GLP-1/peptide therapeutics.
Geographic Diversification
Europe emerged as a high-momentum market with near doubling performance (+81% YoY in FY26).
Oncology Pipeline
Dedicated oncology OSD plant in Vizag with separate API block, targeting high-value oncology molecules.
Genome Valley GLS Facility
10 Bn dosages facility is USFDA approved, Rx Products shipments started, increases formulation capacity by 40%.
Vizag Oncology OSD
Dedicated oncology OSD plant in Vizag with separate API block.
Virginia US Facility
Packing facility in Virginia with 1.5 Bn dosages capacity for full US supply chain control.
Product Mix Upgrade
Accelerating shift to Complex Gx with structurally higher margins and a clear path towards 50%+ of FD.
API Self-Sufficiency
API self-sufficiency for major FD products ensures stable margin delivery and provides a cost advantage.
Peptide CDMO Contribution
Peptide CDMO achieved positive EBITDA in Q4FY26, with the GLP-1/peptide therapeutics market expanding rapidly.
Working Capital Intensity
Net Working Capital to Sales rose to 33% in Q4FY26 from 27% in Q3FY26, moderating cash flow from operations.
Regulatory Compliance
Gagillapur Post-Warning Letter remediation is progressing, but a positive reinspection outcome is still awaited.
R&D Investment Payback
R&D at 5.3% of sales fuels pipeline growth, but the realization of returns from these investments is key.
ROCE Subdued
ROCE% subdued in last few years with investments in GLS and Senn Chemicals AG for future growth.
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 crucial for assessing annual performance and structural shifts in product mix and geographic diversification. QoQ comparison is important for tracking sequential momentum, particularly in new segments like CDMO, and for monitoring working capital and cash flow trends.
Revenue Growth
FY26 Revenue ₹53,656 Mn (Growth of 20% YoY); Q4FY26 Revenue ₹14,706 Mn (+23% YoY, +6% QoQ).
Gross Margin
FY26 Gross Margin 65.0% (+355 bps YoY); Q4FY26 Gross Margin 65.7% (+233 bps YoY, +186 bps QoQ).
EBITDA Margin
FY26 EBITDA 22.1% (+100 bps YoY); Q4FY26 EBITDA 23.9% (+287 bps YoY, +174 bps QoQ).
R&D Spend
FY26 R&D ₹2,853 Mn (5.3% of sales), up 20% YoY. Fuels pipeline growth majorly towards Complex Gx.
Landmark Year Achievement
FY26 marks a landmark year, surpassing the ₹50,000 Mn revenue milestone while achieving the highest gross margin.
EBITDA Expansion Drivers
EBITDA expansion was driven by strong revenue momentum, a structurally improved product mix while continuing prudent investments.
Q4FY26 Execution
Q4FY26 was a strong execution with growth particularly from Peptide CDMO converting into margin and profit expansion.
Gagillapur Reinspection Confidence
Management remains confident in a positive reinspection outcome for the Gagillapur facility.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Gagillapur USFDA Reinspection | Responses submitted in February 2026. | Positive reinspection outcome and clean EIR status. |
| Complex Gx Share in FD | 43% in FY26. | Continued acceleration towards the stated 50%+ target. |
| Peptide CDMO Profitability | Achieved positive EBITDA in Q4FY26. | Sustained profitability and revenue ramp-up from the platform. |
| Net Working Capital to Sales | 33% in Q4FY26. | Improvement in NWC-to-sales and DSO to enhance cash flow from operations. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 +28.2% / mo · near 52W high
Technical chart
GRANULESweekly · 1Y+50.2%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 64. Wait for confirmation.
- SMA20 rising (~22.0% over last month) — short-term momentum positive.
- RSI(14) at 64 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 5% off 52W high · 75% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
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 9/15 to the score.
- Quality contributes 9/20 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -231.9%.
- Valuation is weaker at 2/30; 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: +0 points.
Factor attribution
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 90th percentile of the scored universe and 84th 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: 84th pctile, median 70 · Large: 74th pctile, median 74
148 documents indexed, 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 0.1%.
- ▸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.
Intrinsic value
Fundamentals
Valuation
- P/E
- 31.50
- P/B
- 3.74
- EV/EBITDA
- 13.85
- Market Cap
- 18996.00Cr
Profitability
- ROE
- 13.70%
- ROCE
- 15.50%
- ROA
- 7.71%
- Dividend Y
- 0.23%
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
- 10.39×
- Altman Z
- 6.68
- Book Value
- 205.00
Cash Flow
- FCF Yield
- 0.11%
- FCF Positive Y
- 7/5
- OCF
- 793.00 Cr
- EPS TTM
- 24.01
Shareholding
- Promoter Hold
- 38.02%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 90%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.