JB Chemicals & Pharmaceuticals (506943) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 1,085 crores, up 8% year-on-year, with net profit rising 19% to INR 208 crores and operating EBITDA up 12% to INR 319 crores; H1 FY26 revenue was INR 2,179 crores.

• Domestic business outperformed the market, growing 9% YoY to INR 644 crores, with strong chronic segment and key brands expanding; international business, especially CDMO, saw momentum return.

• Gross margin improved by 200 basis points to 68.2%, and operating EBITDA margin increased by 100 basis points to 29.4% year-on-year.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board on November 11, 2025.

• Statutory auditors conducted a limited review and found no material misstatements in the financials.

Financial highlights

• Domestic to international business mix for H1 FY26 was 61% to 39%, with domestic business contributing 61% of turnover.

• H1 FY26 operating EBITDA (excluding one-off merger impact) grew 13% to INR 649 crores; net profit (excluding one-off) grew 20% to INR 421 crores.

• Operating cash flow for H1 FY26 was INR 363 crores; net cash and equivalents stood at INR 939 crores as of 30 September 2025.

• Gross debt reduced to INR 7 crores as of 30 September 2025.

• Consolidated revenue from operations for Q2 FY26 was ₹108,490 lakhs, up from ₹100,062 lakhs in Q2 FY25; half-year revenue was ₹2,17,884 lakhs, up from ₹2,00,502 lakhs year-over-year.

Outlook and guidance

• Domestic business expected to maintain 12%-14% growth, driven by strong chronic segment performance.

• CDMO segment guidance reaffirmed at 12%-14% growth for the year, with strong momentum and robust order book for H2 FY26.

• Gross margin guidance remains at 67%-69%, and EBITDA margin at 27%-29%.

• High single-digit growth expected in international formulations in H2 FY26.

• The company is undergoing a significant change in ownership and structure, with a planned amalgamation into Torrent Pharmaceuticals Limited, subject to statutory approvals.