Paracetamol maker Granules India's profit drops as lower prices in US, Europe pinch

Granules India

28/05/2025 09:31

May 28 (Reuters) - Granules India GRAN.NS reported a drop in fourth-quarter adjusted profit on Wednesday, hurt by weak pricing and stiff competition in its key European and North American markets.

Profit before exceptional items and tax fell to 1.67 billion rupees ($19.6 million) for the quarter ended March 31, from 1.76 billion rupees a year earlier.

The drugmaker logged a one-time gain of 307.5 million rupees related to an insurance claim it received during the reported quarter. Including the gain, consolidated profit rose 17%.

Granules, which generates about two-thirds of its revenue from North America and 19% from Europe, posted a 2% rise in its revenue from operations.

For further earnings highlights, click nFWN3S00UY.

KEY CONTEXT

Granules, which holds a 30% share of the global paracetamol market, supplies the drug as an active pharmaceutical ingredient (API) and as a ready for consumption form in Europe, Canada, and South Africa. APIs are the active and key components in a drug that produce the intended therapeutic effects.

Indian API makers have been grappling with weak pricing in key European and North American markets due to tough competition, even as global drugmakers turn to India to limit their reliance on Chinese contractors.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Granules India
GRAN.NS
20.33
11.53
13.86
27.62
Strong Buy
4
0.82
0.29
Alivus Life Sciences
ALIV.NS
23.32
16.46
10.87
12.96
Strong Buy
2
0.86
2.04
Laurus Labs
53.89
23.24
16.72
58.70
Hold
11
1.01
0.20
Divi's Laboratories
DIVI.NS
67.54
45.72
17.10
22.97
Hold
24
1.11
0.45

 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY TO MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 85.3790 Indian rupees

JANUARY TO MARCH STOCK PERFORMANCE https://tmsnrt.rs/43ycsN7

 (Reporting by Kashish Tandon in Bengaluru; Editing by Rashmi Aich)

 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))