Fortune Scrip     

Published: May 31, 2026
Updated: May 31, 2026

Granules India

Offering gamut of pharma value chain: Making pharma presence felt worldwide

This time, we have picked Granules India, a pharmaceutical company that is more known abroad (94% of its revenues come from exports) than in India (domestic revenues of 6%), as the Fortune Scrip for the fortnight. Hyderabad-headquartered Granules is an integrated pharma company which offers the entire value chain across APIs (active pharmaceutical ingredients), PFIs (pharmaceutical formulation intermediates) and FDs (finished dosages) — in short, a great product mix of paracetamol, ibuprofen, metformin, metho carbamol and guaifenesin. The company has one of the world's largest PFI units, and the world's largest paracetamol API facility.

Incorporated in 1984 as an API manufacturer, Granules has during the last four decades emerged as a leading fully integrated pharma company. It operates seven manufacturing facilities, of which six are located in India under the name of Granules India while the seventh in the US is styled Granules Pharmaceuticals Inc. The company has emerged as a global pharma entity with a presence in 81+ countries and sales to 325+ clients. It has two R&D centres in Hyderabad (India) and Virginia (US), alongside existing R&D facilities in Pune and Pragati Nagar (Hyderabad).

The company's APIs are used in various therapeutic categories and include anti-retrovirals, anti-hypertensives, analgesics, anti-interactives, anti-fibrotics and inhibitors. It also offers various FDs such as tablets, capsules and press-in capsules in bulk blister packs and bottles, and other speciality products for oncology.

EXPORT FOCUS

Granules is continuously strengthening its footprint overseas, with exports at the latest count accounting for 94% of revenues. Regulated markets are major buyers of its pharma products, with the US charting the top position. In the last one decade, Granules has emerged as a key global player, evolving from an API manufacturer to a truly integrated pharma entity with strong finished dosage capacities and a strategic focus on innovation, sustainability and expansion in regulated markets. In essence, a solid base has been established and the management credits its robust finished dosage capabilities for the company's remarkable success.

Thanks to the rising demand for its products, particularly overseas, Granules has made rapid strides in its financial performance. During the last 16 years, its sales turnover has expanded over 16 times from Rs 455 crore in fiscal 2011 to Rs 5,366 crore in fiscal 2026, with operating profit spurting around 20 times from Rs 57 crore to Rs 1,185 crore and the profit at net level shooting up 28 times from Rs 21 crore to Rs 595 crore. The company's financial position is extremely strong, with reserves at the end of March 2026 standing at Rs 5,060 crore — over 202 times its tiny equity capital of Rs 25 crore.

But we have not selected Granules as the Fortune Scrip for this fortnight on the strength of its past performance. We are confident that its future prospects are even more promising. Consider:

SLUMP ENDS

Though its pace of growth slackened a bit during fiscals 2024 and 2025, the company has rebounded in fiscal 2026 with sales and operating profit scaling all-time highs of Rs 5,366 crore and Rs 1,185 crore respectively. If this trend is any indication, its pace of growth will continue to remain strong, going ahead.

Granules has emerged as a key player in the global pharma space, evolving from an API manufacturer to a fully integrated pharma entity with strong finished dosage capacities and a strategic focus on innovation, sustainability and global expansion. The company has achieved significant milestones in recent years, including a growing presence in regulated markets, a diversified product portfolio, and advancements in green manufacturing practices.

The increasing contribution of finished dosages, which now account for over 77 per cent of the company's revenues, and its strengthened presence in North America where the revenue share has grown to 78% from less than 70% a year ago, reflect this evolution.

VALUE SEGMENTS

The company has gone for strategic portfolio diversification and has expanded into high-value segments such as oncology, CNS/ADHD and anti-diabetic. This will lead to further growth going ahead.

Regulatory compliance has raised the stature of the company. Successful inspections by USFDA, ANVISA, Health Canada and PMDA Japan have not only enhanced the company's market access in these critical regions but has also significantly improved its brand reputation and has instilled greater confidence among its customers.

The company has increased its R&D investment. At Rs 1,986 million (4.4% of revenues), its focus is on developing complex generics and geographic diversification to boost the topline and bottomline continuously. While North America is its primary market, it is expanding in Europe, Canada and emerging markets. Over a year ago, it secured multiple regulatory approvals — seven from USFDA, three in Europe, three in South Africa and one in Europe. At the same time, the company is continuously expanding its product portfolio. With 69 approved ANDAs (38 under Granules India and 31 under Granules Pharmaceuticals), it has strengthened its presence in high-value therapeutic segments like CNS, oncology and metabolic disorders.

MARGIN FOCUS

Going forward, the company's focus will be on high-margin formulations, exploring select non-OSD (oral solid dosage) forms and developing strategic alliances to accelerate global market penetration. This will also be a high-value exercise.

The USFDA has issued an establishment Inspection report (EIR) following a completed inspection of the Chantilly facility (Virginia, US) of Granules Pharmaceuticals Inc, a subsidiary of Granules India. The inspection recorded four observations and the facility has been classified under the ‘voluntary action indicated’ (VAI) category, a classification which signifies that while observations were noted during inspection, the USFDA does not consider the findings to warrant mandatory regulatory action against the facility. This means a virtual clean chit has been given to the company. This will go a long way in boosting the topline as well as the bottomline of the subsidiary.

Granules' shares of a face value of Re 1 per piece are currently quoted around Rs 767, after fluctuating between Rs 805 and Rs 433. The prospects ahead are highly promising. Once the current depressed sentiment in the stock market — on account of the war between the US and Iran — ends, the share price will start climbing towards the four-figure level.

— Savyasachi