Paracetamol maker Granules India's quarterly profit drops on supply backlog

Granules India

12/08/2025 10:35

Aug 12 (Reuters) - Paracetamol maker Granules India GRAN.NS reported a first-quarter profit fall on Tuesday, as a supply backlog hit sales.

Consolidated profit fell 16.3% to 1.13 billion rupees ($12.9 million) for the quarter ended June 30, and revenue grew 2.6% to 12.1 billion rupees.

        The Hyderabad-based drugmaker's North America business, which accounts for more than three-fourths of its revenue, grew 7% year-on-year, while revenue from Europe rose 12%.

But that was not enough to cushion the 30% fall in revenue from outside these top two markets of the company.

For further earnings highlights, click (Full Story).

KEY CONTEXT

Granules holds a 30% global market share of the paracetamol drug, which is used to treat fever and moderate pain. It supplies the drug as an active pharmaceutical ingredient (API) as well as in finished dosage form.

The company said manufacturing at its Gagillapur facility in Telangana was impacted following an adverse U.S. Food and Drug Administration review last year.

Indian drugmakers are also grappling with pricing pressure in the key North American market due to intense competition, while also bracing for a potential hike in U.S. tariffs on pharmaceutical products from India.

PEER COMPARISON

Valuation (next 12 months)
Estimates
(next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth
Profit growth
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Granules India Ltd
GRAN.NS
17.35
9.79
NULL
14.69
21.00
Strong Buy
4
0.73
0.34
Alivus Life Sciences Ltd
ALIV.NS
20.01
13.83
NULL
10.54
10.53
Strong Buy
3
0.73
2.41
Laurus Labs Ltd
LAUL.NS
70.99
27.98
NULL
16.49
58.07
Hold
12
1.13
0.15
Divi's Laboratories Ltd
DIVI.NS
55.31
39.74
14.70
14.38
19.44
Hold
23
0.94
0.51

* 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

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.6425 Indian rupees

APRIL-JUNE STOCK PERFORMANCE https://tmsnrt.rs/4m7Iwzr

 (Reporting by Vijay Malkar in Bengaluru; Editing by Harikrishnan Nair)

 ((VijayDattaram.Malkar@thomsonreuters.com; +91 8097833031;))