Granules (GIL) posted revenues of INR 6,995mn with 20.4% YoY increase, which was 10% higher than our estimate of INR 6,337mn. Revenue growth was mainly driven by PFIs (43% YoY growth) and Formulation (FD) (34% YoY growth) segments, led by new product launches and better pricing in existing products in the regulated market. EBITDA margin expanded by 322bps to 20.5% level was 159bps higher than our estimate due to 322 bps improvement in gross margin led by improved product mix and easing RM costs. Adj.PAT came above our estimate at INR958mn (est INR671mn) driven by the operationally superior performance. During the quarter, GIL sold its 50% stake in Granules Omnichem JV for ~INR1,099mn( 2.2x Book Value) to JV partner. As it does not delivering desired result with lower capacity utilisation and lower return on capital. GIL is also initiated to sell its stake in...