Jubilant Ingrevia Limited

Jubilant Ingrevia Limited reported a robust start to FY27, with revenue reaching a 15-quarter high of ₹1,300 crores, marking a 25% year-on-year growth. EBITDA increased significantly by 36% year-on-year and 22% sequentially to ₹209 crores. Net Profit After Tax (PAT) also saw strong growth, rising 41% year-on-year and 22% quarter-on-quarter to ₹106 crores, reflecting healthy volume growth and improved realizations across its diverse business segments.

The Specialty Chemicals business delivered ₹533 crores in revenue, growing 11% year-on-year, with an EBITDA margin of 26%. The Nutrition & Health segment recorded ₹243 crores in revenue, up 36% year-on-year, achieving its highest EBITDA in three years at ₹36 crores, with margins improving to 15%. The Chemical Intermediates segment demonstrated a strong rebound, with revenue increasing 38% year-on-year to ₹524 crores and EBITDA surging 240% year-on-year to ₹57 crores, driven by robust demand and effective cost pass-throughs.

The company's CDMO business continues to gain momentum, benefiting from the rollout of big innovator CDMO volumes in the agro segment and a threefold expansion in the pharma pipeline. The combined CDMO and Fine Chemicals pipeline now comprises over 100 molecules with a peak revenue potential exceeding ₹3,500 crores, including 25 confirmed molecules. Five new molecules were added in Q1 FY27 across pharma, semiconductor, and personal care segments.

Jubilant Ingrevia is on track to commission its new multipurpose plant by the end of the current calendar year, which is expected to strengthen its CDMO and Fine Chemicals growth roadmap. The new Niacinamide plant, with an annual capacity of 5,000 tons, is currently operating at a 50% run rate, with a target to reach over 70% utilization by the end of the calendar year. The company is also targeting ₹100 crores in lean savings for FY27 and advancing its Supernova program with new Gen AI use cases.

The company faced challenges with a large CDMO contract, which did not see full volume fulfillment in Q1 FY27 due to raw material price escalations and a temporary pause requested by the innovator. While future volume visibility for this contract remains uncertain, management confirmed full contractual protection. The pyridine business experienced pricing pressure in commoditized variants due to overcapacity in China, but the company's focus on higher-value derivatives helped mitigate this impact.

Increased power, fuel, and logistics expenses were noted during the quarter, attributed to higher volumes, the Gulf crisis impacting LSHS and natural gas costs, and general logistics inflation. However, management successfully passed through these increased costs to customers, as reflected in improved realizations. This agile operational strategy helped maintain healthy margins despite external cost pressures.