Granules India Q2 profit jumps 39% to Rs 181.8 crore

Drugmaker Granules India reported a 39% year-on-year jump in consolidated net profit to Rs 181.8 crore in the September quarter.

Revenue from operations rose 20% year-on-year to Rs 1,559.9 crore. Sequentially, growth was subdued. The company had posted Rs 179.9 crore net profit and Rs 1,476.7 crore revenue in the June quarter.”Our quarterly revenue has crossed Rs 1,500 crore in Q2 FY27 with EBITDA of Rs 338 crore despite higher input and logistics costs from tensions in West Asia,” said Krishna Prasad Chigurupati, Chairman and Managing Director.

Cost pressures are expected to persist and the company will work with customers to manage them with a lag, he said.

Chigurupati said Granules is well positioned in its transition towards complex generics and peptide CDMO. The company, backed by Rs 828 crore net cash, plans to invest in research and development, manufacturing and quality.

On the recent US FDA inspection of the company’s finished dosage facility in Gagillapur, Hyderabad, he said the inspection progressed constructively. The management believes the observations can be addressed through responses and corrective and preventive actions. The regulator had issued 11 observations post inspection.

On Monday, Granules shares closed 2.38% higher at Rs 819.55 apiece on the BSE.