J B Chemicals &

J.B. Pharma's domestic business grew 10% YoY to ₹620 crore, consistently outperforming the IPM by 200-300 bps. The growth is heavily supported by the chronic portfolio, with flagship brands like Cilacar and Nicardia growing at 25%+ and 30% respectively. While the acute segment, particularly gastro, saw a seasonal slowdown, the company's focus on chronic therapies continues to provide a stable and high-margin revenue base.

International formulation revenue surged 20% YoY to ₹306 crore, driven by strong demand in Russia, South Africa, and the U.S. Management noted a healthy order book for Q4, guiding for high single-digit growth for the full year in the international segment. This rebound compensates for the relatively flat performance in the CDMO category, which faced a high base effect from the previous year.

Gross margins expanded by 200 bps to 69.1%, while operating EBITDA margins reached 28.7%. This improvement was attributed to a better product mix (higher chronic share), price hikes of approximately 7% taken during the quarter, and stable raw material costs. Management remains confident in maintaining EBITDA margins between 27% and 29% for the full fiscal year.

The pending merger with Torrent is progressing at 'normal speed,' with closure expected in Q4 FY26. Management clarified that while the deal might close in Q4, the full legal merger process could take an additional 6 to 9 months. A significant one-time^📎 ESOP charge of approximately ₹40 crore is anticipated in Q4 upon the change of control, which investors should factor into short-term earnings expectations.

The company is actively scaling its Ophthalmology and CDMO platforms. Ophthalmology is targeted to reach a monthly run rate of ₹17-18 crore within the next 3-4 months. Meanwhile, the CDMO business is expected to maintain a quarterly run rate of ₹115-120 crore for the current year, with a projected growth of 10-12% in FY27 as new capacities and efficiencies kick in.