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Release
August 2026 · rev 1
Opportunities PMS · Published
As at 31 Aug 2026 · IST₹ · ₹ cr · BSE 500 TRI
Present
Internal working platform. Published figures are extracted from the August 2026 source package and reviewed; reference prices and fundamentals are unlicensed working data, not for redistribution. Past performance is not indicative of future returns.
Company Atlas/HealthCare/Granules India
NSE: GRANULES· HealthCareNot in Aug top-30Small cap

Granules India

Value: integrated API-formulations

Last close
₹866.75
29 Sept 2026 · reference
1D · 1M
+1.8% · +3.6%
price-only
Weight
0.7%
31 Jul 2026 · Aug rank —
Thesis review
8 Sep 2026
Why We Own, p44
Coverage owner: Research (per book); latest results Q Jun-26Buoyant AIF I Top 30 Holdings - Aug 2026.pdf · p1Buoyant_Why_We_Own_What_We_Own_Sep2026.pdf (portfolio as of 31 July 2026) · p44Screener ↗Tijori ↗NSE ↗
OverviewBusiness & segmentsChartsFinancialsValuationThesisRisks & catalystsCompetitorsResearch & documents
What the company does

Granules India · Drug Manufacturers - Specialty & Generic

Granules India Limited is a high-growth pharmaceutical company in India, specializing in APIs, PFIs, and FDs. It holds a leadership position in generic drugs like Paracetamol and Ibuprofen.

Full profile (Yahoo)

Granules India Limited manufactures and sells active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates (PFIs), finished dosages (FDs), and peptides CDMO in India and internationally. It offers paracetamol, metformin, guaifenesin, ibuprofen, and methocarbamol, as well as prescription and over-the-counter products. The company also develops and manufactures tablets, capsules, press fits, oral solutions, suspensions, and powder for oral solutions. In addition, it provides development and manufacturing solutions for peptides, peptide fragments, and amino acid derivatives. The company offers its products in various therapeutic categories, including antiretroviral, anti-depressant, antihistamine, anti-diabetic, anti-cancer, multiple sclerosis, anti-thrombocytopenia, anti-ulcer, anti-convulsant, mucolytic/expectorant, anti-hypertensive, muscle relaxant, NSAIDs, anti-fibrotic, and anti-microbial, as well as anti-arrhythmic, CNS stimulant, anti-diarrheal, antihypertensive, uterine stimulant, chelating agent, mineral supplements, CNS depressant, PDE inhibitor, antispasmodic, and anti-viral. Granules India Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

Sector (Yahoo)
Healthcare
Industry (Yahoo)
Drug Manufacturers - Specialty & Generic
Employees
4,306
Website
granulesindia.com

Key people: Dr. Krishna Prasad Chigurupati B.Sc. (Chairman & MD) · Ms. Priyanka Chigurupati (Head of Marketing & Executive Director) · Mr. Harsha Chigurupati BBA (Executive Director) · Ms. Uma Devi Chigurupati (Non-Independent Executive Director) · Mr. Ramraj Rangarajalu (President & Head of Formulations Operations) · Dr. P. N. Baskaran (President and Head API Manufacturing & Operations)

Who are the competitors of Granules India?

Granules India major competitors are Solara Active Pharma, IOL Chem & Pharma, Shilpa Medicare, Acutaas Chemicals, Neuland Laboratories, Alivus Life Sciences, Aarti Pharmalabs. Market Cap of Granules India is ₹23,553 Crs. While the median market cap of its peers are ₹17,369 Crs.

Is Granules India financially stable compared to its competitors?

Granules India seems to be less financially stable compared to its competitors.Altman Z score of Granules India is 7.77 and is ranked 5 out of its 8 competitors.

Snapshot and what to watch · Tijori · 16 Sep 2026
  • Granules India makes active ingredients and finished-dose generic medicines. Finished doses form about two-thirds of sales.
  • It sells into regulated markets including the US through its US manufacturing operations.
  • Earnings come from finished-dose generics, led by complex generics. Peptide contract manufacturing and US manufacturing are the growth vectors.
  • It is adding active-ingredient, US distribution and peptide capacity toward complex generics and peptide work.
  • It turned net cash surplus after promoter warrant funding. This supports its build programme.
  • Near-term profit depends on clearance at its active-ingredient site at Gagillapur, US ramp and peptide profitability. Management guides peptide PAT-positive in FY27 and ~₹600Cr capex.

Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026

Segments

Revenue mix and market share

Product Wise Break-Up
  • Para46.0%
  • MF(Metformin)22.0%
  • Others15.0%
  • IBU ( Ibuprofen)10.0%
  • GGF4.0%
  • MCB3.0%
Segment Break-Up
  • Finished Dosages74.0%
  • API13.0%
  • PFI9.0%
  • Peptide/CDMO4.0%
Location Wise Break-Up
  • USA72.0%
  • Europe16.0%
  • Rest of the World12.0%

Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.

Operating metrics

Company-reported KPIs (Tijori) · latest quarter

As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.

Manufacturing Capacity - Paracetamol34,560 MTPA 2025-03
Number of ANDA's Approved By USFDA71 . 2026-03
Manufacturing Capacity - Metformin2,000 MTPA 2016-03
Number of ANDA's Filed in USA91 . 2026-03
Manufacturing Capacity - Ibuprofen4,800 MTPA 2025-03
US DMF Filings47 . 2026-03
Europe DMF Filings10 . 2026-03
Total reactor capacity626.5 kL 2025-03
Number of ANDA's Filed148 . 2026-03
Business model

How the company earns

Granules is a vertically integrated maker of high-volume generics (paracetamol, metformin, ibuprofen, guaifenesin) spanning APIs, pharmaceutical formulation intermediates (PFI) and finished dosages (FD). Q1FY27 revenue mix: FD 74%, API 13%, PFI 9%, CDMO 4%; North America 72%, Europe 16%, RoW 12%. Complex generics are now 50% of the FD portfolio (39% a year ago) and it ranks ~27th by US generic prescriptions (FY26). Senn Chemicals (Switzerland, acquired Apr-2025) gives it a peptide CDMO platform.

Economics and valuation note (book)

TTM PE 33.1x after a re-rating from ~Rs 487 (univest Apr-2026 note, 22x PE) to Rs 867; 5-yr average PE not sourced. EV/EBITDA computed on mcap + Rs 101 cr net debt over FY26 EBITDA. EV/EBITDA 18.2x; dividend yield 0.2%.

Competitive position · why this and not peers
Divi's LaboratoriesDivi's trades at a far higher multiple for its API/CDMO franchise; Granules at ~21x FY28E offers 30% EPS CAGR with its own (smaller) peptide CDMO option via Senn.
Laurus LabsLaurus's earnings depend on lumpy CDMO/ARV cycles and it carries more leverage; Granules is near net-debt-free (0.07x) with 23% EBITDA margins on a steadier finished-dosage base.
Segment economics

Reported revenue mix

Product Wise Break-Up

share of revenue, %
  • Para
    46.0%
  • MF(Metformin)
    22.0%
  • Others
    15.0%
  • IBU ( Ibuprofen)
    10.0%
  • GGF
    4.0%
  • MCB
    3.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Segment Break-Up

share of revenue, %
  • Finished Dosages
    74.0%
  • API
    13.0%
  • PFI
    9.0%
  • Peptide/CDMO
    4.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Location Wise Break-Up

share of revenue, %
  • USA
    72.0%
  • Europe
    16.0%
  • Rest of the World
    12.0%
  • India
    0.0%
  • Latin America
    0.0%
  • AMEA
    0.0%
  • Canada
    0.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Industry cycle

Healthcare chapter

Healthcare — 6.9%: every headwind of 2016–17 has reversed

Indian pharma's great de-rating had four causes: US pharmacy-benefit managers merged and seized pricing power over generics; the patent cliff migrated from simple to complex molecules faster than Indian companies adapted; GDUFA fees and unannounced FDA inspections produced a wave of 483s and import alerts; and non-Indian generic players took ANDA share. We wrote publicly in 2023 that the winds were changing, and every one of those forces has now inverted. Indian companies have become genuinely good at complex chemistry, peptides and biosimilars, against a patent cliff in complex molecules worth roughly $350 bn ($142 bn of annual innovator sales lose exclusivity by 2030, more than 60% biologics). The FDA has lost about 20% of its staff. The PBM combinations are tied up in litigation. And the GLP-1 wave is real: the semaglutide patent expired in India in March 2026 and Glenmark, Dr Reddy's, Sun and Zydus launched at 50–70% discounts on day one. We like the space across the board — formulations, CDMO/CRO platforms and the GLP-1 supply chain — but we remain valuation-disciplined. Hospitals are excellent businesses that we respect and do not own at 60–80x. The sector thesis is expressed through different archetypes: a Turnaround (Glenmark), two Value names (Aurobindo, Granules), a Cyclical (Dr Reddy's at the lenalidomide trough) and a Core retailer (MedPlus). The domestic market itself is growing 10–12% in value with chronic therapies leading.

Datapoints the team can quote
  • Indian Pharmaceutical Market +12.1% YoY value growth in Jul-2026, MAT ₹2.56 lakh cr (+10.2%); anti-diabetics +17.6%, cardiac +14.7% — Pharmarack via Business Standard, Aug-2026
  • Semaglutide patent (IN 262697) expired 20-Mar-2026; Glenmark, Sun, DRL, Zydus launched generics next day at 50–70% discounts; India+EM opportunity ~₹5,000 cr — Systematix; company launches
  • $142 bn of annual innovator sales lose exclusivity by 2030 (>60% biologics); $3–5 bn capture opportunity for Indian firms FY26–30 — CareEdge, Jun-2026
  • US FDA cut ~3,500 staff (~20%) in Apr-2025; but warning letters rose to 249 in FY2025 from 167 — compliance still matters — FDA / Sidley
  • India pharma exports ~$31 bn in FY26, flat; US-bound −11.5% after 2025 tariff front-loading; Q1FY27 exports $8.1 bn (+6.8%) — Pharmexcil
What we deliberately do not own

Sun Pharma is the quality leader but at 35x+ already prices its specialty franchise and is the most exposed to the lenalidomide cliff; Cipla faces a Goa-plant remediation and a respiratory pipeline dependency; Lupin has re-rated to Sun-like multiples on a handful of US launches; Zydus is the closest competitor to our GLP-1 thesis but priced for it. We own no hospital (Apollo, Max, Fortis at 60–80x EBITDA-normalised P/E) and no CDMO at 70x+ (Divi's, Syngene) — the sector can be attractive while individual valuations still matter. Apollo Pharmacy is buried inside a hospital valuation; MedPlus is the pure play.

Market position

Market share (where tracked)

UnavailableNo market-share series in the fundamentals source.
Sector datapoints

From the one-pager

  • India pharma exports FY26 ~USD 31 bn, ~flat vs FY25 USD 30.47 bn; US-bound shipments fell ~11.5% in FY26 after USD 1.6 bn of tariff-driven front-loading in 2025 (Pharmexcil via Business Standard 4-Apr-2026, PharmaNow).
  • US generics: continued price erosion plus gRevlimid (lenalidomide) cliff in 2026; Sun Pharma US formulations -9.7% YoY to USD 427 mn in Q1FY27 citing lenalidomide erosion and competition…
  • GLP-1: semaglutide patents expired Canada 4-Jan-2026, India and Brazil Mar-2026; Systematix sizes the India+EM generic opportunity at ~Rs 5,000 cr (India Rs 1,000-2,000 cr in FY27…
  • Indian Pharma Market (IPM) +12.1% YoY value growth in Jul-2026 (Rs 23,193 cr); MAT Jul-2026 Rs 2.56 trn, +10.2%; anti-diabetics +17.6%, cardiac +14.7% (Pharmarack via Business Standard 7-Aug-2026).