The European champions had ended FC Barcelona’s record-breaking run last season with a 2-1 win at the Camp Nou.
Now, they have not been beaten since going down 2-0 to Wolfsburg in the first leg of their 2015/2016 UEFA Champions League quarter-final meeting last April.
Isco hit a brace, with Karim Benzema, Cristiano Ronaldo and Casemiro also on the scoresheet against struggling Granada as Madrid moved six points clear at the top of the table.
Isco opened the scoring with a low shot from inside the area after a mistake by the Granada defence while trying to move the ball forward.
Benzema — from what appeared to be an offside position — added to the lead off the rebound of a shot by Luka Modric.
Ronaldo increased the lead after Marcelo cleared a defender on the left side before making a perfect cross into the area.
Isco netted again from close range after a low cross by Modric from the right flank for 4-0.
Casemiro scored the final goal nearly an hour in after a free kick by James Rodriguez, who entered in the second half after impressing against Sevilla midweek.
Atletico Madrid avoided losing even more ground to Real Madrid, thanks to second-half goals by Saul Niguez and Antoine Griezmann in a 2-0 win over Eibar.
Saul scored with a header after a cross by Filipe Luis in the 54th minute, and Griezmann sealed the victory from close range in the 74th.
The News Agency of Nigeria (NAN) reports that the result moved Diego Simeone’s team to fourth place, but they are still nine points behind Real Madrid.
It was their second win in a row after earning only four points in five straight league matches.
Nabil El Zhar scored 10 minutes after half-time to give Las Palmas a 1-0 win over Sporting Gijon.
The result moved Las Palmas into eighth place, while Gijon remain in the relegation zone.
(NAN)