Granules India receives Rs 1,096.125 crore on conversion

Granules India Limited received Rs 1,096.125 crore during the half year ended September 30, 2026 when holders converted 24,982,906 preferential warrants into equity shares. The conversion lifted standalone equity to Rs 5,673.534 crore from Rs 4,399.116 crore at March 31, 2026, while current borrowings declined to Rs 381.734 crore.

How much did Granules India receive from warrant conversion?

Granules India received Rs 1,096.125 crore as the outstanding subscription amount when 24,982,906 warrants were converted during the quarter and half year ended September 30, 2026. It allotted 24,982,906 fully paid equity shares with a face value of Rs 1 each and a premium of Rs 584 each, implying an issue price of Rs 585 per share.

Granules India had issued 25,000,000 preferential warrants in the previous year to its promoter group and non-promoter investor category. It received Rs 365.625 crore at issuance, representing the minimum 25% of the consideration. The 24,982,906 conversions left 17,094 warrants unconverted at September 30, 2026.

Each warrant carried the right to convert into one equity share and could be exercised in one or more tranches within 18 months from allotment. The standalone cash-flow statement recorded Rs 1,096.125 crore of proceeds from issuance of equity shares and share warrants in the half year ended September 30, 2026, against Rs 1.853 crore in the corresponding 2025 half year.

How did Granules India’s equity change after conversion?

Granules India’s standalone paid-up equity share capital increased to Rs 27.278 crore at September 30, 2026 from Rs 24.780 crore at March 31, 2026. The Rs 2.498 crore increase corresponds with the 24,982,906 new shares allotted on warrant conversion, each carrying a Rs 1 face value.

Total standalone equity increased by Rs 1,274.418 crore over the six months. This increase compares with Rs 1,096.125 crore of conversion proceeds, while Granules India reported profit after tax of Rs 180.262 crore and total comprehensive income of Rs 221.657 crore for the half year ended September 30, 2026.

The larger share capital was also reflected in the quarterly earnings-per-share data. For the quarter ended September 30, 2026, basic earnings per share were Rs 4.31 and diluted earnings per share were Rs 4.21, compared with Rs 2.90 and Rs 2.84 respectively in the quarter ended June 30, 2026. The company stated that these per-share figures were not annualised.

Did Granules India reduce borrowings after the equity inflow?

Granules India’s standalone current borrowings fell to Rs 381.734 crore at September 30, 2026 from Rs 733.680 crore at March 31, 2026. The cash-flow statement showed a net repayment of current borrowings of Rs 326.865 crore in the half year, alongside the Rs 1,096.125 crore proceeds from equity shares and warrants.

Cash and cash equivalents rose by Rs 480.777 crore over the period, while bank balances other than cash equivalents rose by Rs 491.171 crore. Net cash used in investing activities was Rs 589.413 crore, including Rs 489.890 crore of movement in other bank balances and Rs 93.076 crore spent on property, plant and equipment, intangible assets and capital work-in-progress.

Finance costs declined despite remaining current borrowings. Granules India reported standalone finance costs of Rs 17.410 crore in the half year ended September 30, 2026, compared with Rs 30.326 crore in the corresponding 2025 period. Total current liabilities decreased by Rs 209.633 crore, although trade payables to creditors other than micro and small enterprises rose to Rs 658.646 crore from Rs 480.160 crore.

What were Granules India’s standalone half-year results?

Granules India reported standalone revenue from operations of Rs 1,749.698 crore for the half year ended September 30, 2026, compared with Rs 1,701.821 crore a year earlier. Product sales rose to Rs 1,697.592 crore from Rs 1,674.621 crore, while other operating revenue increased to Rs 52.106 crore from Rs 27.200 crore.

Standalone profit after tax was Rs 180.262 crore, down from Rs 190.098 crore in the corresponding 2025 half year. Profit before tax was Rs 242.617 crore compared with Rs 253.353 crore; the prior-year period included Rs 12.160 crore of exceptional transaction costs related to the acquisition of Senn Chemicals AG.

Granules India operates in one reportable segment, pharmaceutical products including ingredients and intermediaries. In the quarter ended September 30, 2026, revenue from operations was Rs 947.821 crore, compared with Rs 801.877 crore in the June 2026 quarter and Rs 891.613 crore in the September 2025 quarter. Quarterly profit after tax was Rs 108.516 crore, compared with Rs 71.746 crore and Rs 120.613 crore respectively.

What regulatory and expansion matters should Granules India follow?

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 in August and September 2024. The USFDA subsequently inspected the facility in October 2026 and concluded the inspection with a Form FDA 483.

Granules India said none of the Form FDA 483 observations related to data integrity or cross-contamination. Management said it was responding within stipulated timelines and believed there was no impact on manufacturing or distribution from the Gagillapur facility. The filing did not disclose a date for completing the response process or for resolution by the USFDA.

Granules India incorporated two wholly owned subsidiaries during and shortly after the reporting period. Triton Farmaceutica Do Brasil LTDA was incorporated in Brazil on September 30, 2026, and Triton Farmaceutica, S.A. de C.V. was incorporated in Mexico on October 22, 2026. The standalone cash-flow statement reported Rs 5 crore invested in subsidiaries in the September 2026 half year, compared with Rs 265 crore in the corresponding 2025 half year.

Conclusion

The warrant conversion brought Granules India Rs 1,096.125 crore from the balance due on 24,982,906 preferential warrants and increased its standalone paid-up share capital and total equity by September 30, 2026. Current borrowings declined by Rs 351.946 crore from March 31, while revenue increased in the half year even as reported profit after tax was below the prior-year period.

The next disclosed matter to watch is Granules India’s response to the October 2026 USFDA Form FDA 483 at Gagillapur, which management said it was submitting within stipulated timelines. The company’s newly incorporated Brazil and Mexico subsidiaries, dated September 30 and October 22, 2026 respectively, are also future entities whose operating contribution was not disclosed in this filing.