Granules India Q4 Net Profit Rises 18% YoY to ₹152 Crore

29 May 2025 , 11:07 AM

Granules India Ltd. reported a disappointing Q4 FY25 with revenue that grew by 1.8% yoy to ₹1,197.5 crore against ₹1,175 crore in the same quarter last year. The EBITDA for the quarter decreased by 1.4%, YoY to ₹252 crore, and the EBITDA margin was down by almost 70 basis points to 21.1% from 21.8% on a YoY basis.

Aided by cost efficiency or other non-operational gains, despite weaker operating metrics, net profit grew 18% YoY to ₹152 crore, implying some margin resilience. North America region accounted for 79% of overall revenues in the quarter and it was 70% in FY19 same period highlighting increased export oriented sales.

The firm’s net debt fell by ₹136 crore to ₹706.1 crore, with a comfortable net debt-to-EBITDA at 0.75x, reflecting a better leverage position. The formulations business saw strong 18% growth, which contributed to some extent to offset the operational weakness at business level.

The Gagillapur plant (up to 65% of consolidated sales), however, remained subdued due to continued remediation-inspired weakness (USFDA warning letter of February 2025) during the course of SN’s interaction.

The USFDA alert followed an inspection in August 2024, during which serious violations such as risks of contamination, inadequate cleaning systems, lack of maintenance and data integrity issues were recorded. Productivity at the company’s Gagillapur plant continued to be at lower levels in H2 FY25 on account of ongoing compliance remediation initiatives,”company Chairman & Managing Director Krishna Prasad Chigurupati said.