Maintain BUY with a revised TP of Rs 170 (16x Sep-19E EPS). Granules India (GRAN) reported another quarter of top-line growth (8% YoY), after a subdued FY17. Revenue was Rs 3.9bn, in-line with estimates. EBITDA was Rs 769mn (up ~4% YoY), implying a margin of 19.6%, ~190bps below estimates. An increase in employee costs (+8% QoQ) owing to hiring at the US subsidiary, led to the subdued margin performance. A higher tax rate and increasing finance costs (additional debt taken on during 2QFY18) led to PAT declining 1% YoY to Rs 403mn.