Granules India Ltd

In the Q2 and H1 FY27 earnings call, Granules India Limited reported revenue growth of 20% year-on-year to INR15,600 million, with EBITDA up 21% and PAT increasing 39% to INR1,818 million. The company highlighted strong performance across markets, including North America and Europe, driven by controlled substances and complex generics. The Gagillapur facility underwent a U.S. FDA inspection, resulting in 11 observations, none related to data integrity or cross-contamination. Management stated these issues are addressable and will be resolved within 15 business days. The peptide CDMO business through Senn Tides showed progress, with successful GMP inspections and increased customer engagement. Financially, gross margins declined slightly due to higher input costs, but R&D investment remains focused on high-barrier areas. The company emphasized disciplined execution, quality improvements, and growth in complex generics and CDMO platforms. Management guided toward continued growth, with 5 product launches expected in the next two quarters, though no specific revenue or EBITDA guidance was provided. Capex plans include infrastructure expansion for peptide CDMO and U.S. operations, with net cash of INR8,280 million strengthening the balance sheet. The FDA's impact on pending applications remains uncertain, but no immediate disruption to existing operations was reported.

The document emphasizes strong revenue and profit growth, progress in regulatory compliance, and strategic expansion in high-barrier areas, reflecting a positive outlook.