Granules India Q2 FY27 Results Analysis: PAT Jumps 39%, Margin Slips Below Guidance

Cofacto Research Published November 02, 2026 3 min read

Neutral

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.

Quick Details

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