Mumbai: JB Chemicals & Pharmaceuticals Ltd (“The Company”) announced its financial results for the fourth quarter of FY 26 on Monday.
India Business:
- During the quarter, India business grew by 2% YoY to INR 526 crores
- For FY26, India business grew 9% YoY to INR 2,461 crores; BGx business grew 11%
- As per IQVIA MAT Mar’26 dataset, India business grew at 11% v/s IPM growth of 10%. The chronic portfolio grew 19%, outperforming industry growth of 14%.
- Secondary market growth of 11% as per IQVIA MAT March 26, is reflective of the underlying growth for both; the quarter and the full year.
- One-offs in Q4 include:
- Distribution network optimisation initiatives undertaken as part of the integration process.
- Discontinuation of low margin portfolio of trade generics business
- Alignment of trade and sales closing practices with parent entity (including credit policy, field incentives etc.)
- Alignment of cut-off policies as part of the post-acquisition integration process, resulting in a timing impact on revenue during the quarter
International Formulations:
- International Business for the quarter reported a de-growth of 9% to INR 259 crores
- For FY26, International formulations revenue grew 2% YoY to INR 1,154 crores.
- Business performance is affected by
- One-off negative impact of inventory rationalization as well as change in credit practices linked to change of control and alignment of practices with those of the parent company
- Shipment delays due to container constraints in international markets. Some of these shipments particularly to the Middle East remain on hold while others will be shipped during Q1.
CDMO:
- CDMO revenues for the quarter declined by 22% due to a high base in the corresponding quarter of the previous year.
- For the full year, CDMO business was flat at INR 445 crores.
- Business growth has been impacted by higher base of previous years and reduction in inventory held by customers.
Future Outlook
- Subsequent to change of control, the Company initiated post-acquisition integration activities focused on aligning business policies, practices, and operating frameworks across the organization with that of its parent.
- The quarter therefore represents a transient but important phase of integration, with the Company working towards harmonizing operational structures and strengthening the foundation for long-term growth and efficiency.
- The Company believes these impacts are temporary in nature and the business performance is expected to progressively improve in the coming quarters, starting from April.
- Core business performance remains robust despite of operational realignment; uniform practice alignment with parent entity should drive further momentum
- Despite revenue impact in Q4, significant improvement in gross margin and EBITDA margin profile is seen due to cost synergies and improving business mix; further cost synergy execution for the upcoming year remains on track as per guidance.
