Granules India Ltd. share price target

The YoY numbers for the quarter are not comparable due to low base of FY25. Post the Gagillapur USFDA warning letter, the company has focused on developing other facilities and also focused on incremental flings across markets. Besides CNS and ADHD, it is also focusing on Oncology as a segment with dedicated API and formulations block at Vizag. The management expects full revival of Gagillapur facility post clearance from the USFDA (Management meeting with USFDA scheduled in Jan 26) by filing new products. On the margins front, the numbers continued to...

Granules India appears to be entering a phase of structural recovery, supported by steady progress on regulatory milestones (notably the remediation of Gagillapur) and a 40% incremental formulation capacity expansion at its Genome Valley site, which should meaningfully reduce supply constraints.

Granules India (GRAN) delivered better-than-expected operational performance (9.5%/8.3% beat on revenue/EBITDA). However, earnings were in line with estimates due to higher depreciation and tax rate for the quarter.

We remain positive on Granules' long-term growth and profitability, supported by new product launches across geographies, a focus on backward integration, and rising market share. Entry into the CDMO segment via the Senn acquisition, along with higher-margin oncology filings, is expected to strengthen financials. Moreover, resolution of regulatory issues at the Gagilapur facility could act as a key re-rating catalyst. Hence, we maintain an Accumulate rating on the...

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.