JB Chemicals & Pharmaceuticals (506943) Q4 24/25 earnings summary

Executive summary

• FY25 revenue reached INR 3,918 crore, up 12% year-over-year, with strong domestic and CDMO performance; Q4 FY25 revenue grew 10% to INR 949 crore, and net profit rose 15% to INR 146 crore, driven by robust chronic and opt-health portfolios.

• Domestic business grew 20% to INR 2,269 crore, outpacing the Indian pharma market, with chronic portfolio up 16%-18% and opt-health up 22%.

• International business grew 4% to INR 1,649 crore, led by 18% CDMO growth and double-digit growth in Russia and branded generics exports.

• Operating EBITDA rose 16% to INR 1,087 crore, with margins improving to 27.7%; PAT increased 19% to INR 660 crore.

• ROCE improved to 32% and net cash position reached INR 689 crore by year-end.

Financial highlights

• FY25 revenue rose 12% to INR 3,918 crore; domestic business grew 20%, international business 4%.

• Gross margin for FY25 improved to 66.4% (up 30 bps); operating EBITDA margin at 27.7% (up 70 bps); net profit for FY25 increased 19% to INR 660 crore.

• Operating cash flow was INR 903 crore, with an 83% operating cash flow to EBITDA ratio.

• ROCE improved to 32% and ROE to 19.2%; net cash position at INR 689 crore as of March 31, 2025.

• Final dividend of INR 7 per share, total dividend INR 15.50 per share for the year.

Outlook and guidance

• EBITDA margin guidance raised to 27%-29% (ex-ESOP), with ESOP costs expected at INR 41-46 crore in FY2026 and INR 26 crore in FY2027.

• Gross margin expected to improve by 30-50 bps in FY2026, supported by cost initiatives and favorable business mix.

• CDMO business projected to grow 12-14% annually; international branded generics to see double-digit growth from FY2027 as new products commercialize.

• India and CDMO businesses expected to contribute 75%-80% of revenues in the medium term; chronic share to rise to 60%.

• Continued focus on cost optimization, governance, ESG, and business sustainability.