Regulatory
HIGHTrigger: Gagillapur is the facility designated for complex generics US launches; resolution delay directly caps the margin expansion runway; each quarter of delay is ~INR 200-400 Mn in foregone high-margin revenue
Monitor: regulatory
Granules India Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +34.9%Strong12w Streak
In , Granules India Ltd (Pharma - API & CRAMS) is outperforming Nifty 500 with +34.9% relative strength. Fundamentals: Strong. On a 12-week streak.
Granules India Ltd Key Facts
- PE Ratio
- 28.8x
- Market Cap
- ₹17,338 Cr
- PAT Growth YoY
- +33%
- Revenue Growth YoY
- +23%
- OPM
- 24.0%
- RS vs Nifty 500
- +34.9%
PE: At PeakEmerging Opportunity
What's Happening
⏳Steady earner with flat PE — waiting for re-rate catalyst
🌐FII stake decreased 5.4% this quarter
🏛️DII accumulation — stake up 3.1%
💰Trading 19% above estimated fair value
Key Risks
1. Regulatory
HIGH2. Commodity
MEDIUM3. Fx
MEDIUMKey Numbers
PAT Growth YoY
+33%
Inflection Up
Revenue YoY
+23%
Stable
Operating Margin
24.0%
+300 bps YoY
PE Ratio
28.8
Current Price
₹700
Dividend Yield
0.21%
Fundamental Score
64/100
Strong
3Y PAT CAGR
+5%
Market Cap
18.7K Cr
Valuation
Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What Are the Key Risks for Granules India Ltd?
Earnings deceleration risks from management commentary
Commodity
MEDIUMTrigger: Granules' historical vulnerability to API price compression is being structurally mitigated via product mix shift; however, the commodity API base (Paracetamol, Metformin) still contributes ~55% of FD revenue and remains exposed to supply-side swings
Monitor: commodity
Fx
MEDIUMTrigger: Multi-currency exposure is increasing as Granules diversifies geographically and acquires Switzerland-based assets; FX management complexity rising with Senn integration
Monitor: fx
Geopolitical
MEDIUMTrigger: India pharma sector faces potential US tariff headwinds in FY27; Granules' US-heavy FD revenue mix makes it more exposed than peers with balanced geographies
Monitor: geopolitical
Logistics
LOWTrigger: Standard pharma logistics exposure; not flagged as a specific concern
Monitor: logistics
What Is Granules India Ltd's Management Saying?
Key quotes from recent conference calls
“Gagillapur facility — post-warning letter meeting with FDA January 2026; additional documentation submitted [Risk (regulatory): HIGH]”
“Gross Margin FY26: 65.0% (+355 bps YoY). Q4 FY26 Gross Margin: 65.7% (+233 bps YoY) [Risk (commodity): MEDIUM]”
“Europe Revenue FY26: +151% YoY. Senn Chemicals AG (Switzerland) acquired [Risk (fx): MEDIUM]”
“Not explicitly discussed in the presentation [Risk (geopolitical): MEDIUM]”
How Fast Is Granules India Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +23% | +6% | Stable |
| PAT (Net Profit) | +33% | +5% | Inflection Up |
| OPM | 24.0% | +300 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
Other Top Pharma - API & CRAMS Stocks Beating Nifty 500
Frequently Asked Questions: Granules India Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Granules India Ltd's latest quarterly results?
Granules India Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +32.9% (turning around (inflection up))
- Revenue Growth YoY: +22.9%
- Operating Margin: 24.0% (expanding)
Is Granules India Ltd's profit growing or declining?
Granules India Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +32.9% (latest quarter)
- PAT Growth QoQ: +34.7% (sequential)
- 3-Year PAT CAGR: +4.8%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Granules India Ltd's revenue growth trend?
Granules India Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +22.9%
- Revenue Growth QoQ: +6.0% (sequential)
- 3-Year Revenue CAGR: +6.0%
How is Granules India Ltd's operating margin trending?
Granules India Ltd's operating margin is expanding.
- Current OPM: 24.0%
- OPM Change YoY: +3.0% basis points
- OPM Change QoQ: +2.0% basis points
What is Granules India Ltd's 3-year profit and revenue CAGR?
Granules India Ltd's long-term compounding rates
- 3-Year Profit CAGR: +4.8%
- 3-Year Revenue CAGR: +6.0%
Is Granules India Ltd's growth accelerating or decelerating?
Granules India Ltd's earnings growth is turning around (inflection up) with positive momentum on a sequential basis.
- YoY Acceleration: +5.8% bps
- Sequential Acceleration: +20.2% bps
What is Granules India Ltd's trailing twelve month (TTM) performance?
Granules India Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹596 Cr
- TTM PAT Growth: +18.7% YoY
- TTM Revenue: ₹5,000 Cr
- TTM Revenue Growth: +19.7% YoY
- TTM Operating Margin: 21.9%
Is Granules India Ltd overvalued or undervalued?
Granules India Ltd appears overvalued based on our fair value analysis.
- Valuation Signal: Overvalued
- Current PE: 28.8x
- Price-to-Book: 3.4x
What is Granules India Ltd's current PE ratio?
Granules India Ltd's current PE ratio is 28.8x.
- Current PE: 28.8x
- Market Cap: 17.3K Cr
- Dividend Yield: 0.21%
How does Granules India Ltd's valuation compare to its history?
Granules India Ltd's current PE is 28.8x.
- Current PE: 28.8x
- Valuation Assessment: Overvalued
What is Granules India Ltd's price-to-book ratio?
Granules India Ltd's price-to-book ratio is 3.4x.
- Price-to-Book (P/B): 3.4x
- Book Value per Share: ₹205
- Current Price: ₹700
Is Granules India Ltd a fundamentally strong company?
Granules India Ltd is rated Strong with a fundamental score of 63.55/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +22.9% (10% weight)
- PAT Growth YoY: +32.9% (10% weight)
- PAT Growth QoQ: +34.7% (10% weight)
- Margins expanding (10% weight)
Is Granules India Ltd debt free?
Granules India Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹2,000 Cr
What is Granules India Ltd's return on equity (ROE) and ROCE?
Granules India Ltd's return ratios over recent years
- FY2024: ROCE 15.0%
- FY2025: ROCE 15.0%
- FY2026: ROCE 15.0%
Is Granules India Ltd's cash flow positive?
Granules India Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹793 Cr
- Free Cash Flow (FCF): ₹20 Cr
- CFO/PAT Ratio: 133% (strong cash conversion)
What is Granules India Ltd's dividend yield?
Granules India Ltd's current dividend yield is 0.21%.
- Dividend Yield: 0.21%
- Current Price: ₹700
Who holds Granules India Ltd shares — promoters, FII, DII?
Granules India Ltd's shareholding pattern (Mar 2026)
- Promoters: 38.0%
- FII (Foreign): 15.3%
- DII (Domestic): 17.0%
- Public: 29.7%
Is promoter holding increasing or decreasing in Granules India Ltd?
Granules India Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 38.0% (Mar 2026)
- Previous Quarter: 38.0% (Feb 2026)
- Change: 0.00% (stable)
How long has Granules India Ltd been outperforming Nifty 500?
Granules India Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Is Granules India Ltd a new momentum entry or an established outperformer?
Granules India Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
What are the key risks in Granules India Ltd?
Granules India Ltd has 5 key risks worth monitoring
- [HIGH] Regulatory — Gagillapur is the facility designated for complex generics US launches; resolution delay directly caps the margin expansion runway; each quarter of delay is ~INR 200-400 Mn in foregone high-margin revenue
- [MEDIUM] Commodity — Granules' historical vulnerability to API price compression is being structurally mitigated via product mix shift; however, the commodity API base (Paracetamol, Metformin) still contributes ~55% of FD revenue and remains exposed to supply-side swings
- [MEDIUM] Fx — Multi-currency exposure is increasing as Granules diversifies geographically and acquires Switzerland-based assets; FX management complexity rising with Senn integration
- [MEDIUM] Geopolitical — India pharma sector faces potential US tariff headwinds in FY27; Granules' US-heavy FD revenue mix makes it more exposed than peers with balanced geographies
What did Granules India Ltd's management say in the latest earnings call?
In Q4 FY26, Granules India Ltd's management highlighted
- "Gagillapur facility — post-warning letter meeting with FDA January 2026; additional documentation submitted [Risk (regulatory): HIGH]"
- "Gross Margin FY26: 65.0% (+355 bps YoY). Q4 FY26 Gross Margin: 65.7% (+233 bps YoY) [Risk (commodity): MEDIUM]"
- "Europe Revenue FY26: +151% YoY. Senn Chemicals AG (Switzerland) acquired [Risk (fx): MEDIUM]"
Is Granules India Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Granules India Ltd may be worth studying
- Earnings growing at +32.9% YoY
- Operating margins are expanding — OPM at 24.0%
- Cash flow is positive — CFO ₹793 Cr
What is the investment thesis for Granules India Ltd?
Granules India Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +22.9% YoY
- Margins expanding
Risk Factors (Bear Case)
- Appears overvalued
- Key risk: Regulatory
What is the future outlook for Granules India Ltd?
Granules India Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Overvalued
- Key Risk: Regulatory
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.