Granules India (532482) Q4 24/25 earnings summary

Executive summary

• Q4 FY 2025 saw continued growth and strong gross margins, despite operational challenges and productivity slowdown at the Gagillapur facility due to USFDA remediation, with ongoing efforts to resolve regulatory issues and maintain supply of approved products.

• Strategic focus remains on high-margin formulations, new product launches in CNS, ADHD, and complex generics, expansion into peptides and oncology, and capacity additions at Genome Valley and European sites.

• Acquisition of Senn Chemicals AG marks entry into the high-growth peptide therapeutics and CDMO sector, with integration underway and incorporation of Granules Peptides Private Limited.

• Sustainability initiatives advanced, earning a gold EcoVadis rating and improved climate scores.

• Audited standalone and consolidated financial results for Q4 and FY25 were approved, with an unmodified audit opinion from statutory auditors.

Financial highlights

• Q4 FY 2025 revenue was INR 11,974 million, up 2% year-over-year and 5% sequentially; full-year consolidated revenue was INR 44,816 million, slightly up from FY 2024.

• Gross margin for Q4 FY 2025 improved to 63.4% from 60.1% in Q4 FY 2024, driven by higher-margin finished dosages; full-year gross margin rose to 61.5% from 55.1%.

• EBITDA for Q4 FY 2025 was INR 2,524 million (21.1% margin), with full-year EBITDA at INR 9,452 million, up 10% year-over-year.

• Consolidated net profit for FY25 was INR 5,015 million, up from INR 4,053 million in FY24, aided by a Rs. 308 million cyber insurance claim.

• Net debt reduced to INR 7,061 million from INR 8,289 million in Q3 FY 2025; cash flow from operations for the year was INR 8,666 million, nearly doubling year-over-year.

Outlook and guidance

• Gagillapur facility operations expected to remain slow for another quarter or two due to ongoing remediation, but overall FY 2026 performance anticipated to surpass FY 2025.

• CapEx guidance for FY 2026 is INR 600 crore, including investments in Senn Chemicals, oncology, and peptide projects.

• Gross margin levels are expected to be sustainable, with continued focus on high-margin formulations.

• European sales recovery will be driven by new formulation launches, while North America remains the primary growth driver.

• Ongoing investments in GLS and CZRO projects to support future growth.