Granules India’s fourth-quarter profit jumps on strong demand

April 29 (Reuters) – Drugmaker Granules India reported a 32.6% jump in fourth-quarter profit on Wednesday, driven by recent portfolio additions and robust demand for paracetamol and methocarbamol in its major markets.

Here are the details:

• Consolidated profit rose to 2.02 billion rupees ($21.3 million) for the quarter ended March 31, from 1.52 billion rupees a year earlier.

• Managing Director and Chairman Krishna Chigurupati said, “We delivered a strong performance in Q4 FY26, driven by continued portfolio expansion, disciplined execution, and steady progress across regulatory, compliance, and sustainability initiatives.”

• Revenue from operations climbed about 23% to 14.71 billion rupees, supported by a 12% increase in North America, which accounts for about two-thirds of the company’s sales.

• “North America continued to anchor the business as the core growth engine, (while) Europe emerged as a high-momentum market with near doubling performance,” the company said.

• Shares of the company rose 2% in afternoon trading.

• Granules accounts for about 30% of the global paracetamol market and operates 10 manufacturing plants worldwide – seven in India, two in the U.S. and one in Europe.

• The company sells its products globally, including in the United States, Canada, Latin America, Europe, the Asia-Pacific region and India.

• Analysts at Emkay Global said growth in fiscal 2027 is likely to be driven by the ramp-up of recent product launches, while additional controlled drug products slated to be introduced from fiscal 2028 should support longer-term growth.

• The company has demonstrated stronger-than-expected margin resilience over the past six quarters despite regulatory issues at its flagship Gagillapur facility, the analysts added.

• Granules has increased oversight at its manufacturing facilities after the U.S. Food and Drug Administration flagged violations, including record-keeping lapses and contamination control issues, at its largest plant.

($1 = 94.7450 Indian rupees)

(Reporting by Abhinav Parmar in Bengaluru; Editing by Sumana Nandy)