J B Chemicals &

J.B. Chemicals & Pharmaceuticals experienced an operational reset in Q4 FY26, leading to a 5% de-growth in revenue to INR 904 crores. Despite this, adjusted EBITDA remained flat at INR 241 crores, and the adjusted EBITDA margin improved by 2% to 27% compared to the previous year. Gross margin also saw a significant improvement, rising to 70% from 66%, primarily due to the discontinuation of low-margin trade generics and a favorable product mix. Reported net profit after tax was INR 101 crores, which adjusted for INR 40 crores of one-off^📎s (including non-cash ESOP charges) stood at INR 150 crores.

The India business grew by 2% year-on-year to INR 526 crores in Q4 FY26. However, the branded business within India demonstrated stronger performance, growing 8% for the quarter. For the full fiscal year FY26, the India business grew 9% to INR 2,461 crores, with the branded segment growing 11%. This outperformance is evident in IQVIA MAT March'26 data, showing India business growth at 11% versus IPM growth of 10%, and chronic business growth at 19% versus industry growth of 14%. The sequential slowdown was attributed to the discontinuation of the low-margin trade generics business, which contributed 7-8% to the India top line until Q3.

The International formulations business faced headwinds in Q4 FY26, reporting a de-growth of 9% to INR 259 crores. For the full year FY26, international formulations revenue grew 2% to INR 1,154 crores. This decline was linked to container shipment constraints and the West Asia crisis. The CDMO business also saw a 22% decline in Q4 revenues due to a high base in the prior year, though it remained flat at INR 445 crores for the full FY26. Management expects positive momentum for CDMO over the next 12 months but acknowledges challenges in development-side execution due to a lean organizational structure.

The merger process with Torrent Pharma is in its final stages, with shareholder approvals received and a hearing scheduled for the second week of June, expecting effectiveness within one to two months. Integration steps in Q4 FY26 included optimizing the distribution network, discontinuing low-margin trade generics, and aligning trade and sales practices. Management anticipates gradual recovery to original growth trajectories, with India business reaching double-digit/low teens growth in a couple of quarters and international business seeing single-digit growth from Q1/Q2 FY27. Synergies are expected from portfolio complementarity, procurement, and corporate overhead optimization, with visibility in margin improvement from April 2026.

The Board of Directors recommended a final dividend of INR 9.3 per equity share for FY26. The company maintained a healthy liquidity position, with a net cash balance of approximately INR 1,200 crores as of FY26. Management did not discuss specific capital expenditure plans or debt management activities during the call, focusing instead on the ongoing integration and operational adjustments.