Granules Q3 FY2025 Results: 6% Profit Decline to ₹118 Crore Amid Regulatory Costs

Granules Q3 FY2025: Net Profit Dips 6% to ₹118 Crore on Pricing Pressures

Financial Performance

Granules India reported a **6.4% YoY decline** in consolidated net profit for Q3 FY2025, falling to ₹117.6 crore from ₹125.65 crore in the year-ago period. Revenue dipped marginally by 1.55% to ₹1,137.69 crore, impacted by pricing challenges and subdued demand in select markets.

Key Metrics

• Sequential Improvement: Net profit rose 21% QoQ (vs. ₹97.2 crore in Q2 FY2025)
• Revenue Growth: 18% QoQ increase from ₹966.6 crore

Operational Challenges

• Price Erosion: Margin pressures in key product segments
• Regulatory Costs: Increased expenses post-U.S. FDA inspection at a facility
• Demand Volatility: Lower offtake in certain therapeutic categories

Management Commentary

The company highlighted efforts to optimize operational efficiency and expand high-margin product lines. Focus areas include:

• Accelerating compliance upgrades post-FDA observations
• Leveraging vertical integration to mitigate input cost pressures
• Exploring new markets for API (Active Pharmaceutical Ingredients) exports

Market Response

Shares closed flat ahead of earnings, reflecting investor caution amid ongoing regulatory reviews and pricing headwinds in global markets.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. Consult a qualified financial advisor before making investment decisions.

Categories: FY2025 financial trends, Granules Q3 results 2025, pharmaceutical earnings report