1. Opening Hook
Granules walked into Q3 with a warning letter hangover, a loss-making peptide business, and the FDA watching closely.
Naturally, they responded by delivering one of their strongest quarters ever.
Revenue surged, margins expanded, and management sounded almost… relaxed.
Yes, Gagillapur is still under remediation.
Yes, peptides are still eating EBITDA for breakfast.
And yes, the FDA still hasn’t hugged them back officially.
But between clean inspections, higher complexity launches, and a surprisingly chill regulator, Granules looks like it’s quietly turning the page.
This concall wasn’t about chest-thumping.
It was about execution, de-risking, and waiting for the slow-moving wheels of pharma karma to turn.
Read on — the real story is hiding behind the peptide losses and FDA footnotes.
2. At a Glance
- Revenue up 22% – Growth didn’t ask for permission, it just showed up.
- EBITDA up 34% – Even with peptides throwing tantrums.
- EBITDA margin at 22.2% – Operating leverage finally doing its job.
- Gross margin at 63.9% – Product mix understood the assignment.
- Peptide loss ₹25 cr – Strategic investment, not a horror movie (yet).
- ROCE at 16.8% – Capital efficiency slowly crawling back to respectability.
3. Management’s Key Commentary
“Q3 FY26 has been one of our strongest quarters.”
(Translation: Yes, even with peptides bleeding and FDA breathing.) 😏
“FDA has not raised concerns on adequacy or pace of
remediation.”
(Translation: The regulator didn’t yell. In pharma, that’s a win.)
“We have de-risked by filing products from US and GLS facilities.”
(Translation: Never trust one plant. Ever.)
“GLS inspection had five observations, none on data integrity.”
(Translation: The most important sentence of the call.)
“Peptide CDMO performance was modest but activity-intensive.”
(Translation: We lost money, but we swear it was productive.)
“Q4 should see meaningful improvement in peptide performance.”
(Translation: Please wait one more quarter before panicking.)
“We don’t give guidance.”
(Translation: Don’t trap us with spreadsheets.) 😌
4. Numbers Decoded
Metric | Q3 FY26 | Decoded Meaning
-------------------------------|---------------|-----------------
Revenue | ₹1,388 cr | Broad-based growth, not one-hit wonder
EBITDA | ₹308 cr | Core business firing hard
EBITDA Margin | 22.2% | Despite peptides dragging feet
Gross Margin | 63.9% | Complex generics flexing
Peptide EBITDA Loss | ₹25 cr | Pain before payoff (hopefully)
Operating Cash Flow