Granules Reports 6% Drop in Q3 PAT Amid Gagillapur Plant Closure Due to USFDA Observations

Granules India Ltd faced a setback in their finances due to the temporary closure of their Gagillapur plant. This facility was closed from September to October 2024 after the US Food and Drug Administration (USFDA) made several observations during an inspection.

As a result, the company’s profit after tax fell by 6% in the third quarter ended December 31, 2024. They reported a PAT of ₹117.6 crore compared to ₹125.7 crore in the same period last year. Revenue also declined by 2%, dropping to ₹1137.7 crore from ₹1155.6 crore.

The closure impacted Granules India’s overall performance for the nine months leading up to December 31. During the inspection, which occurred between August 26 and September 6, 2024, the company received six observations, some of which highlighted serious compliance issues.

Dr. Krishna Prasad Chigurupati, the chairman and managing director, emphasized that despite these challenges, the company is committed to enhancing quality and compliance at the Gagillapur plant. They remain focused on maintaining profitable growth, particularly in the finished dosages segment, driven largely by their North America business.

Looking ahead, Granules India is making progress with its greenfield formulation expansion at Granules Life Sciences (GLS), which they believe will bolster their capabilities and support future growth.

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