Granules India quarterly profit rises 39% to Rs 181.837 crore

Granules India Limited reported consolidated profit of Rs 181.837 crore for the quarter ended September 30, 2026, up 39% from Rs 130.606 crore a year earlier, while revenue from operations rose 20% to Rs 1,559.974 crore. Profit before tax increased to Rs 243.423 crore, and the quarter contained no exceptional item.

How did Granules India perform in the September 2026 quarter?

Granules India reported a 39% year-on-year increase in profit for the quarter ended September 30, 2026, to Rs 181.837 crore from Rs 130.606 crore in the quarter ended September 30, 2025. Profit before tax rose 38% to Rs 243.423 crore from Rs 175.865 crore, while total income increased to Rs 1,570.659 crore from Rs 1,295.839 crore.

Revenue from operations was Rs 1,559.974 crore, compared with Rs 1,296.988 crore a year earlier and Rs 1,476.774 crore in the preceding quarter ended June 30, 2026. Product sales accounted for Rs 1,538.228 crore in the September 2026 quarter, while other operating revenue was Rs 21.746 crore, against Rs 2.314 crore in the September 2025 quarter.

Total expenses rose to Rs 1,327.236 crore from Rs 1,119.974 crore, an increase that was smaller than the Rs 274.820 crore rise in total income. Basic earnings per share were Rs 7.22, compared with Rs 5.38 in the prior-year quarter, while diluted earnings per share were Rs 7.03, against Rs 5.38.

What changed in Granules India’s quarterly costs and income?

Granules India’s cost of materials consumed rose to Rs 613.152 crore in the September 2026 quarter from Rs 497.799 crore a year earlier. Employee benefits expense increased to Rs 258.135 crore from Rs 219.201 crore, and other expenses rose to Rs 408.166 crore from Rs 354.600 crore.

The inventory-change line reduced expenses by Rs 57.056 crore, compared with a reduction of Rs 52.840 crore in the September 2025 quarter. Depreciation and amortisation increased to Rs 83.865 crore from Rs 72.021 crore, while finance costs declined to Rs 20.974 crore from Rs 29.193 crore.

Other income was Rs 10.685 crore in the latest quarter, compared with negative Rs 1.149 crore in the year-earlier period and Rs 2.267 crore in the June 2026 quarter. Tax expense rose to Rs 61.586 crore from Rs 45.259 crore, comprising current tax of Rs 61.344 crore and deferred tax of Rs 0.242 crore.

How did Granules India perform in the first half of 2026-27?

Granules India reported consolidated profit of Rs 361.800 crore for the half year ended September 30, 2026, up 49% from Rs 243.242 crore in the comparable 2025 period. Revenue from operations increased 21% to Rs 3,036.748 crore from Rs 2,507.094 crore, while profit before tax rose to Rs 483.827 crore from Rs 320.390 crore.

The year-earlier half included a net exceptional charge of Rs 25.911 crore, whereas no exceptional item was reported for the half year ended September 30, 2026. Granules India said the earlier exceptional items included Rs 12.160 crore of transaction costs associated with the acquisition of Senn Chemicals AG and settlement of certain litigations involving Granules Pharmaceuticals Inc.

Total comprehensive income for the six months was Rs 428.828 crore, compared with Rs 301.736 crore a year earlier. Other comprehensive income, net of tax, was Rs 67.028 crore against Rs 58.494 crore, and basic earnings per share rose to Rs 14.48 from Rs 10.03.

The group reported one business segment: pharmaceutical products, including ingredients and intermediates. This means the filing does not provide separate revenue or profit figures for product categories, geographies or the subsidiaries listed in the consolidated results.

What do Granules India’s cash flow and balance sheet show?

Granules India generated net cash from operating activities of Rs 452.443 crore in the half year ended September 30, 2026, compared with Rs 474.279 crore in the prior-year half. Cash generated from operations was Rs 552.559 crore, while direct taxes paid were Rs 100.116 crore, compared with Rs 563.263 crore and Rs 88.984 crore respectively a year earlier.

Net cash used in investing activities increased to Rs 706.789 crore from Rs 499.099 crore. The latest half-year outflow included Rs 219.643 crore for property, plant and equipment, intangible assets and capital work-in-progress, as well as a Rs 487.969 crore movement in other bank balances.

Total assets were Rs 8,871.661 crore at September 30, 2026, compared with Rs 7,719.950 crore at March 31, 2026. Inventories increased to Rs 1,860.975 crore from Rs 1,673.025 crore, trade receivables rose to Rs 946.354 crore from Rs 909.366 crore, and cash and cash equivalents increased to Rs 944.870 crore from Rs 880.238 crore.

Current borrowings declined by Rs 422.204 crore from March 31, 2026, while total equity increased by Rs 1,481.589 crore. Property, plant and equipment rose to Rs 2,918.203 crore from Rs 2,860.326 crore, and capital work-in-progress increased to Rs 433.864 crore from Rs 406.490 crore.

What regulatory and corporate developments did Granules India disclose?

Granules India said its Gagillapur facility received a United States Food and Drug Administration, or USFDA, warning letter in February 2025 following an inspection conducted during August and September 2024. A further USFDA inspection in October 2026 ended with a Form FDA 483, and Granules India said none of its observations related to data integrity or cross-contamination.

Granules India said it was responding to the October 2026 Form FDA 483 within the stipulated timelines and believed there was no impact on manufacturing or distribution from the facility. The company did not disclose the observations themselves, a response date, or a timeline for the USFDA’s subsequent assessment.

During the September 2026 quarter, holders exercised 24,982,906 warrants and paid a balance subscription amount of Rs 1,096.125 crore. Granules India allotted 24,982,906 equity shares with a face value of Rs 1 each and a premium of Rs 584 per share; its equity share capital consequently rose to Rs 27.278 crore from Rs 24.780 crore at March 31, 2026.

Granules India also disclosed the incorporation of wholly owned subsidiary Triton Farmaceutica do Brasil LTDA in Brazil on September 30, 2026, and Tritoin Farmaceutica S.A. de C.V. in Mexico on October 22, 2026. The company had previously issued 25,000,000 warrants at Rs 585 each, with conversion rights exercisable in one or more tranches within 18 months of allotment.

Conclusion

Granules India’s September-quarter profit growth of 39% exceeded its 20% growth in operating revenue, with profit before tax rising to Rs 243.423 crore and total expenses reaching Rs 1,327.236 crore. For the first half, profit rose 49% to Rs 361.800 crore, although the year-earlier comparison included a Rs 25.911 crore exceptional charge.

The next disclosed matter to watch is Granules India’s response to the October 2026 USFDA Form FDA 483 at Gagillapur and any subsequent regulatory update. Investors can also track the deployment of proceeds from the Rs 1,096.125 crore warrant conversion and developments at the Brazil and Mexico subsidiaries incorporated on September 30 and October 22, 2026.