Granules Q1: consolidated PAT ₹180 Cr, ~30% adjusted YoY as operating margin expands to 23%

Granules India opened FY27 with a clean, operationally strong June quarter. Consolidated revenue rose 22.0% YoY to ₹1,476.77 Cr and net profit came in at ₹179.96 Cr (EPS ₹7.26). The headline PAT growth of +59.8% YoY flatters the picture: the year-ago Q1 FY26 base carried a net exceptional loss of ~₹25.9 Cr (Senn Chemicals acquisition costs and a GPI litigation settlement, partly offset by a ₹10.4 Cr US Pharma disposal gain), whereas this quarter is free of one-offs — so the underlying, adjusted PAT growth is closer to ~30%. Even on that cleaner basis the print is strong, because it is margin-led: operating margin expanded to ~23.0% from 18.25% a year ago and net margin to 12.19% from 9.18%, i.e. profit growth ran well ahead of the topline.

The drivers sit on the operating lines rather than below them — cost of materials and other expenses grew slower than revenue, lifting the gross-to-EBITDA bridge, while finance costs actually eased YoY (₹21.1 Cr vs ₹23.8 Cr). Sequentially the read is softer: revenue was flat QoQ (+0.4% vs ₹1,470.61 Cr) and PAT fell 10.7% off a seasonally strong Q4 that also carried a ₹15.9 Cr exceptional gain and a slightly lower tax rate; margin gave back ground versus Q4's 25.02% OPM. The consolidated-vs-standalone gap is now wide and widening — standalone PAT was just ₹71.75 Cr on ₹801.88 Cr revenue — reflecting the newly consolidated overseas subsidiaries (Senn AG, Granules Pharma GmbH and Canada) and the US-facing Granules Pharmaceuticals Inc. Consolidated is the number the market will anchor on.

The stock went into the print at ₹895.8, up 13.8% over the past month of trading.

Against expectations, there is no published quarter-specific consensus (results landed with today's July 21 board meeting and 5:00 PM call); against the analyst frame of 15-20% PAT growth for full-year FY27, this first quarter runs ahead of pace. Management gave no formal revenue or margin guidance on the prior (Q4) call — only ~₹600 Cr FY27 capex, broadly stable net debt, and an aim for the peptide CDMO (Ascelis) to be PAT-positive on an annual basis — so this print can only be judged as consistent with that disciplined, profitable-growth posture, which it is. No management press release was extracted with this filing.