Granules India reports strong Q2 FY26 revenue growth

Granules India Limited reported a robust 34% year-on-year revenue growth for Q2 FY26, reaching INR 12,970m, up from INR 9,666m in Q2 FY25. This growth was primarily fueled by the formulation business in North America and Europe, and improved operational efficiency. Gross margin also saw a healthy improvement of 368 basis points year-on-year, reaching 65.7%.

The company achieved an EBITDA of INR 2,782m, representing 21.5% of sales, an increase of 42 basis points from Q2 FY25, despite an EBITDA loss of INR 200m from Ascelis peptides. R&D expenses for the quarter stood at INR 705m (5.4% of sales), supporting long-term strategic growth. Net debt was reported at INR 10,241m, an increase from INR 9,480m in Q1 FY26 due to higher CAPEX spends of INR 2,112m.

Regulatory milestones include a GMP certificate for the Gagillapur site from German authorities and a U.S. FDA approval for a product from the greenfield GLS facility at Genome Valley, adding 10bn doses of formulation capacity. The company anticipates returning to double-digit growth from FY27 onwards, driven by these approvals and the Ascelis Peptides CDMO platform, which is expected to turn PAT profitable by Q4 FY26.