JB Chemicals & Pharmaceuticals (506943) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenues grew 11% year-on-year to INR 1,065 crores, with net profit up 22% to INR 198 crores and operating EBITDA up 13% to INR 305 crores; domestic and international businesses outperformed the market, driven by chronic therapies and flagship brands.

• Gross margin expanded by 200 basis points to 69.1%, and operating EBITDA margin improved to 28.7% year-on-year, supported by cost optimization and favorable product mix.

• Priorities include strengthening flagship brands, accelerating chronic therapy growth, scaling CDMO, and building organizational resilience.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were reviewed and approved by the Board and auditors, with no material misstatements identified.

Financial highlights

• Q3 FY26 revenue reached INR 1,065 crores, up 11% YoY; 9M FY26 revenue was INR 3,244 crores, up 9% YoY; net profit for Q3 FY26 rose 22% YoY to INR 198 crores.

• Operating EBITDA for Q3 FY26 was INR 305 crores (up 13% YoY) with a margin of 28.7%; 9M FY26 EBITDA was INR 955 crores (up 13% YoY) with a margin of 29.4%.

• Gross margin improved to 69.1% in Q3 FY26 (up 200 bps YoY); other income increased to INR 18 crores due to treasury income.

• Standalone and consolidated net profit after tax for Q3 FY26 was ₹17,927 lakhs and ₹19,789 lakhs, respectively, with consolidated EPS at ₹12.63.

• Paid-up equity share capital increased due to ESOS allotments.

Outlook and guidance

• Operating margin guidance for FY26 remains at 27-29%, with gross margin for the year guided to be in the 60-69% range.

• Domestic business expected to grow 200-300 basis points above the market, international business to end the year at high single-digit growth.

• CDMO sales momentum expected to continue into Q4 FY26, with growth of 10-12% in FY27.

• Q4 expected to maintain similar performance as Q3, with strong order books in both domestic and international markets.

• The company continues to monitor regulatory changes, including new Labour Codes, and will adjust financial reporting as needed.