Granules India Ltd. share price target

We have revised our FY26E/FY27E EPS estimates by -0.6%/-4.6% primarily to reflect a more gradual post-remediation ramp-up at Gagillapur, and a measured margin recovery amid persistent integration and operating costs.

Validation activities have begun in Phase 2, Genome Valley, in this quarter. Also, the company continues to invest in research and development efforts aimed at building a pipeline of high-value molecules, with a focus on backward integration, especially in the oncology and CNS segment. The company has filed its first oncology molecule in this quarter....

Granules India (GRAN) delivered a slightly better-than-expected revenue in 4QFY25. However, it reported largely in-line EBITDA/PAT for the quarter.

Granules India (GRAN) delivered better-than-expected revenue, while EBITDA/PAT stood in line for the quarter. The traction in finished dosage (FDF) remained robust for six quarters now.

Revenues stood at Rs. 957 crore, falling 19% y-o-y and 18% q-o-q, falling 5% short of our estimates.

Granules India (GRAN) was issued a Form 483 with six observations for its Gagillapur site after a recent USFDA inspection.

Granules India (GRAN) posted in-line revenue in 1QFY25. However, it delivered better-than-estimated 1QFY25 EBITDA/PAT led by the increased share of formulation sales.

We reiterate a Buy on Granules as the company is focusing on value-added products to increase its EBITDA margins to 22% plus from 19% in FY24.