Granules FY25 PAT up 24% despite Gagillapur plant productivity woes

HYDERABAD: Granules India Ltd posted a 17 per cent rise in consolidated profit after tax (PAT) for the fourth quarter ended March 31, 2025, at Rs 152 crore compared to Rs 130 crore in the same period of the last financial year. This was on a marginal 2 per-cent increase in consolidated revenue from operations at Rs 1197 crore in Q4FY25 from Rs 1176 crore in Q4FY24.However, for the financial year 2024-25, the company recorded a 24 per-cent jump in consolidated PAT at Rs 501.5 crore compared to Rs 405 crore, despite a 1 per-cent decline in revenue from operations at Rs 4482 crore from Rs 4506 crore in FY24.The company said it witnessed a sustained increase in formulations share despite the slowdown in productivity of its Gagillapur facility, where currently US FDA remediation activities are ongoing after inspectors flagged major violations of good manufacturing practices.Granules stated that while the share of revenues from the North American market rose to 79 per-cent in Q4FY25 from 70 per-cent in Q4FY24, the total share of finished dosages in revenues stood at 77 per-cent, and that of active pharmaceutical ingredients (API) and pharmaceutical formulation intermediates (PFI) was at 12 per-cent and 10 per-cent, respectively.Granules India Ltd Chairman & Managing Director Dr Krishna Prasad Chigurupati said that although the company paused production at Gagillapur in September 2024 for over a month to reassess the risks and undertake the necessary USFDA remediation activities, the company achieved a formulations growth of 18 per-cent.“The productivity of the Gagillapur facility was lower in H2 FY25 with ongoing remediation activities. Our strong financial performance reflects the success of our strategic initiatives, particularly our focus on enhancing our product mix by prioritising high-margin offerings and expanding our portfolio of non-legacy molecules. This reflects the strength and adaptability of our business model,” he said.