Granules India Share Price Down After Q3 Revenue, Profit Fall

Shares of Granules India Ltd. fell over 4% on Friday after it reported a decline in the third-quarter net profit. The profit in the third quarter fell 6.3% to Rs 118 crore in comparison to Rs 126 crore reported in the same quarter last year.

Revenue decreased by 1.6% year-on-year for the three months ended Dec. 31, 2024, reaching Rs 1,138 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 8.1% year-on-year to Rs 230 crore. The Ebitda margin contracted by 143 basis points to 20.23% from 21.67% in the same period the previous year.

The revenue share from North America rose to 77% in comparison to 66% in the third quarter of the previous fiscal. Finished dosages, Active Pharmaceuticals Ingredients and Pharmaceutical Formulation Intermediates contributed 76%, 12%, and 12% of revenue from operations, respectively for the third quarter.

The company's return on capital employed for the quarter stood at 16.4%, as compared to 15.3% in the same quarter last year. The net debt for the quarter stood at Rs 828.9 crore, according to an exchange filing.

The pharmaceutical company had voluntarily paused the production at the Gagillapur plant in September for risk assessment on account of the US FDA observations. Subsequently, the production resumed in October in a staggered manner.

Shares of Granules India Ltd. fell as much as 4.41% to Rs 573.15 apiece, the highest level since Jan. 23. It pared loss to trade 2.77% lower at Rs 583 apiece, as of 1:54 p.m. This compares to a 0.10% decline in the NSE Nifty 50.

The stock has risen 39.81% in the last 12 months. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 48.

All seven analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 13.7%.