Granules India Q2 FY27 Results Analysis: PAT Jumps 39%, Margin Slips Below Guidance
Granules India Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,559.97 Cr (+20.28% YoY) and PAT growth of +39.23% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 02, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,559.97 Cr (+20.28% YoY) |
| PAT (Q2) | Rs. 181.84 Cr (+39.23% YoY) |
| EBITDA margin | 21.64% (+19 bps YoY) |
| EPS (Q2) | Rs. 7.22 (+34.20% YoY) |
Quarter Snapshot
Revenue grew 20.28% YoY and PAT 39.23% YoY, tracking management's ~22% FY27 revenue guidance, but Q2 EBITDA margin of 21.64% slipped below the guided 22-23% band on input-cost pressure. The balance sheet transformed to net cash of Rs.883.83 Cr via warrant conversion, while the Gagillapur Form FDA 483 (no data-integrity observations) keeps site clearance as the key pending catalyst.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Revenue in line to ahead on an easy base | +20.28% YoY | Played out |
| Margin band is the test as the inventory buffer runs off | 21.64% margin, −131 bps QoQ — downside scenario materialized | Played out |
| Peptide swing the biggest factor | Not disclosed in filing | Not observable |
| FX mild tailwind | Not isolable in filing (H1 unrealised FX loss Rs.21.08 Cr) | Not observable |
| No Q2 tariff hit to generics | No tariff item in filing | Played out |
| Gagillapur outcome pending | Form FDA 483 issued; no data-integrity observations — inspection done, clearance open | Partially |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA margin stable in 22–23% (FY27) | Q1 FY27 call, CMD: "We expect that to continue" | Q2: 21.64% — below band; H1: 22.28% — within — Q2 slipped out; H1 cumulative still inside | Stretch |
| Revenue ~22% YoY (FY27) | Q1 FY27 call | Q2 +20.28%; H1 +21.13% | On Track |
| Capex Rs.600 Cr (FY27) | Q1 FY27 call (Rs.89 Cr spent in Q1) | H1 consolidated Rs.219.64 Cr | On Track |
| Peptide CDMO PAT-positive (FY27) | Q1 FY27 call and prior calls | Q2 peptide result not disclosed in the filing | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 20.28% YoY to Rs.1,559.97 Cr; H1 revenue Rs.3,036.75 Cr, +21.13% YoY, tracking the ~22% FY27 guidance
- PAT grew 39.23% YoY to Rs.181.84 Cr; basic EPS +34.20% YoY to Rs.7.22
- Balance sheet swung to net cash of Rs.883.83 Cr from net debt of Rs.389.07 Cr at March, on Rs.1,096.13 Cr warrant-conversion proceeds
- Finance costs fell 28.15% YoY to Rs.20.97 Cr (1.34% of revenue vs 2.25% a year ago)
- H1 CFO/PAT of 1.25x and CFO/EBITDA of 0.67x; no exceptional items this quarter, making the YoY comparison clean
- EBITDA grew 21.33% YoY to Rs.337.58 Cr; margin +19 bps YoY at 21.64%
- New wholly owned subsidiaries incorporated in Brazil (Sep 30, 2026) and Mexico (Oct 22, 2026), building a LatAm entry
Risk Factors
- Q2 EBITDA margin of 21.64% slipped below management's guided 22-23% FY27 band, down 131 bps QoQ, with EBITDA flat sequentially (-0.39% QoQ)
- Other expenses grew 8.7% QoQ, faster than revenue growth of 5.63% QoQ
- Materials intensity at 39.31% of revenue, up 573 bps QoQ, reflecting input-cost pressure
- Standalone EBITDA margin fell 532 bps YoY to 18.39% and standalone PAT declined 10.03% YoY
- Derived Q2 free cash flow was negative at -Rs.65.60 Cr as working capital rebuilt (inventories +Rs.168.72 Cr in H1)
- Gagillapur USFDA inspection concluded with a Form FDA 483 in October 2026; site clearance still pending
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.