Granules (GIL) posted revenues of INR 9,968mn with 18% YoY growth, which was 5.2% below our estimate of INR 10,517mn. Revenue miss was mainly due to slower growth in the finished dosages (FD) segment. During Q3, FDs grew by 8.4% (YoY), PFIs grew by 32.4% (YoY), and API sales improved by 24.4% (YoY). GIL has witnessed an increase in key raw material costs along with higher freight costs. Despite taking price increase by renegotiation with some of its customers, continued increasing input cost and lower revenue from FD severely impacted its gross margins by 707bps (YoY), which resulted in 762bps (YoY) contraction in EBITDA margin to 17.4% (est.18.8%) in Q3FY22. The management expects to continue to pass on the RM cost increases to their customers in Q4FY22. GIL reported a PAT of INR 1009mn, which was below our estimate of INR 1192mn due to...