Granules India’s net profit declined 6.4% to ₹117.6 crore compared to ₹125.6 crore in the same quarter last year. Revenue dropped 1.5% to ₹1,137.6 crore, down from ₹1,156 crore a year ago.

Meanwhile, EBITDA fell 8% to ₹230.2 crore, with margins narrowing to 20.2% from 22% in the year-ago period. Despite the decline, both revenue and EBITDA surpassed Bloomberg’s estimates for the quarter.

The stock slipped as much as 4.41% to ₹573.15 apiece,  before recovering partially to trade 2.86% lower at ₹581.15 by 2:29 p.m.

The North American market emerged as a key driver for the company, contributing 77% of its total revenue in the quarter, compared to 66% in the corresponding period last year.

Finished dosages remained the largest revenue contributor, accounting for 76% of the total, while Active Pharmaceutical Ingredients (APIs) and Pharmaceutical Formulation Intermediates contributed 12% each.

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The company’s return on capital employed (ROCE) improved to 16.4% from 15.3% a year earlier, showcasing operational efficiency. However, net debt stood at ₹828.9 crore, indicating a moderate increase in its financial liabilities.

In September, the company voluntarily paused production at its Gagillapur plant to assess risks following observations by the U.S. FDA. Production resumed in a staggered manner in October, mitigating potential disruptions to its operations.