1. At a Glance – Blink and You’ll Miss the Drama
Granules India is trading at ₹565, packing a ₹13,713 Cr market cap, and casually dropped a Q3 FY26 PAT growth of ~28% YoY while the broader pharma space was busy posting press releases about “challenging macro conditions.” Quarterly revenue clocked ₹1,388 Cr (+22% YoY), PAT ₹150 Cr, and EPS ₹6.19—numbers that scream execution but whisper valuation anxiety.
ROCE stands at 15.1%, ROE at 13.9%, and debt-to-equity at 0.45—not scary, not sexy, just… responsible adult pharma behavior. The stock is down ~6% over one year but up 20% in six months, which tells you the market woke up late, rubbed its eyes, and said “oh wait, Granules didn’t die.”
The real masala?
- Finished dosages now 64% of revenue
- North America = 66% of sales
- ADHD/CNS portfolio printing money
- ₹1,462 Cr warrants + ₹300 Cr preferential issue approved
So the question: Is this a boring API-to-formulation success story… or a capital-raising soap opera with FDA background music? Let’s dig.
2. Introduction – From Paracetamol Supplier to ADHD Powerhouse
Once upon a time, Granules India was that dependable bulk pharma guy—paracetamol, metformin, guaifenesin—solid, boring, low-margin stuff that made accountants happy and investors sleepy. Then management woke up one day and said: “Why are we doing donkey work when we can sell finished pills at US prices?”
Fast forward to FY24–FY26, and Granules has quietly reinvented itself into a formulation-heavy, US-focused, CNS/ADHD specialist. Finished dosages went from 52% of revenue in FY22 to 64% in FY24, while APIs and PFIs politely stepped aside.
This wasn’t accidental. The company invested heavily in US facilities, ANDA filings, R&D (now ~4.4% of revenue), and niche dosage forms like extended-release, bilayered tablets, and press-fit capsules.
Of course, no Indian pharma pivot is complete without:
- One ransomware attack (May 2023 ✔️)
- One USFDA warning/EIR dance ✔️
- One preferential issue that makes retail investors sweat ✔️
Yet, despite all this, Granules delivered TTM EPS ₹22.48, sales ₹5,092 Cr, and OPM ~21%. Not bad for a
company many wrote off as “API wala.”
But does this transformation actually deserve a premium? Or are we paying ADHD prices for paracetamol DNA? Keep reading.
3. Business Model – WTF Do They Even Do?
Let’s simplify Granules for your lazy-but-smart investor brain.
1️⃣ Finished Dosages (64% of FY24 revenue)
This is where the money lives. Tablets, caplets, press-fit capsules, blister packs, bottles—the whole pharmacy aisle. Granules has cracked controlled substances and CNS/ADHD products in the US, with 7 products ranked No.1, contributing ~70% of US revenues.
Basically:
- US kids can’t focus
- Doctors prescribe ADHD meds
- Granules ships pills
- Shareholders get dopamine
2️⃣ APIs (22% of FY24 revenue)
Old-school bulk drugs like paracetamol and metformin. Still cash-generating, but margins are meh. Management is clearly de-emphasizing this to avoid commodity hell.
3️⃣ PFIs (14% of FY24 revenue)
The unsung hero. High-volume intermediates with direct drum-to-hopper transfer, making Granules a preferred supplier for global pharma companies. Think of PFIs as the “middle child” doing all the work quietly.
Add to this:
- 7 manufacturing facilities (6 India, 1 USA)
- 30 billion dosage units capacity
- API capacity ~39,400 TPA
In short: Granules moved up the pharma food chain—from ingredient seller to pill peddler with pricing power. Question is: can they stay there?
4. Financials Overview – Numbers Don’t Lie (But They Flirt)
Result Type Detected: Quarterly Results (Q3 FY26) → EPS annualisation rules applied accordingly.
Quarterly
