Impact of Gagillapur Plant Closure on Granules India's Q3 Earnings

Granules India Ltd experienced a 6% drop in its consolidated profit after tax (PAT) for the third quarter ending December 31, 2024, primarily due to the temporary closure of its Gagillapur facility. The PAT fell to Rs 117.6 crore from Rs 125.7 crore in the same quarter of the previous fiscal year.

Revenue Decline and USFDA Observations

The company also reported a 2% decline in revenue from operations, totaling Rs 1137.7 crore for the quarter, down from Rs 1155.6 crore in the corresponding period last year. This downturn was significantly influenced by the voluntary production pause at the Gagillapur plant following observations by the US Food and Drug Administration (USFDA).

Commitment to Quality and Future Growth

Despite these challenges, Granules India remains committed to enhancing quality and compliance across its operations. Dr. Krishna Prasad Chigurupati, Chairman & Managing Director, emphasized the company's focus on systemic improvements and the progress of its greenfield formulation expansion at Granules Life Sciences (GLS), which is expected to drive future growth.