Q2 2026 Granules India Ltd Earnings Call Transcript
Key Points
- Granules India Ltd (BOM:532482) reported a 34% year-on-year revenue growth for Q2 FY26, driven primarily by the formulation business in North America and Europe.
- The company achieved a strong gross margin of 65.7% in Q2 FY26, an improvement of 368 basis points year-on-year, attributed to operational efficiency and product mix.
- The Gagillapur facility received GMP certification from German and Danish authorities, indicating compliance with international standards.
- The US FDA approved the Greenfield Formulation Facility at Genome Valley, increasing formulation capacity by 40% and enabling multisite manufacturing.
- Granules India Ltd (BOM:532482) is on track to turn its Peptide CDMO platform, Ascelis Peptides, profitable by Q4 FY26, with strong customer engagement and integration progress.
- The Gagillapur facility is still under a US FDA warning letter, with a reinspection meeting scheduled for January 2026, delaying potential revenue from new product approvals.
- The company incurred an EBITDA loss of INR200 million from Ascelis Peptides, impacting overall profitability.
- Net debt increased to INR10,241 million in Q2 FY26, primarily due to increased CapEx spending.
- Consultancy expenses related to US FDA compliance were significant, amounting to $2 million in Q2 FY26, with expectations to decrease in future quarters.
- The cash flow from operations decreased to INR1,937 million in Q2 FY26 from INR2,806 million in Q1 FY26, indicating potential liquidity challenges.
Ladies and gentlemen, good day, and welcome to the Granules India Limited Q2 FY26 earnings conference call.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Irfan Raeen from MUFG. Thank you, and over to you, sir.
Thank you, Muskan. On behalf of Granules India Limited, I extend a warm welcome to all participants on Q2 and H1 FY26 financial results discussion call.
Today on the call, we have Dr. Krishna Prasad Chigurupati, Chairman and Managing Director; Ms. Priyanka Chigurupati, Executive Director; Mr. Mukesh Surana, Chief Financial Officer; Dr. P.V. Srinivas, Chief Technology Officer; and Mr. Sanjay Kumar, Chief Strategic Officer.
Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward-looking statements, which are completely based upon our expectations, beliefs and opinion as of today. These statements are not guarantee of our future performance and involve
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