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JBCHEPHARM · price
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JB Chemicals reported Q4 FY'26 revenue of INR904 crore (down 5% YoY) with adjusted EBITDA flat at INR241 crore. Gross margin improved to ~70% from 66%, and adjusted EBITDA margin rose ~200bps to 27%. Reported net profit was INR101 crore; adjusted net profit INR150 crore. The quarter marked the first since Torrent Pharma acquired controlling stake (Jan 21, 2026). India business grew 2% to INR526 crore; branded business grew 8%. International formulations de-grew 9% to INR259 crore due to container shipment constraints in Middle East and Asia. CDMO revenue fell 22% due to high base. Management guided that India growth should normalize to double-digit/low-teens in a couple of quarters, while International should see single-digit growth from Q2. Merger with Torrent expected to be effective in 1-2 months. Field force is ~2,500 MRs with rationalization expected. Net cash position is INR1,200 crore.
The operational reset from integration and trade generics rationalization temporarily impacted Q4 results, but management signaled gradual recovery starting Q1-Q2. The gross margin improvement and synergy expectations (procurement, distribution optimization, corporate overhead) suggest potential for better profitability going forward.