Jubilant Ingrevia Limited

Jubilant Ingrevia reported its highest quarterly revenue and sales volume in the last 10 quarters, reaching INR 1,121 crore in Q2 FY26, a 7% year-on-year increase. This growth was primarily driven by an 18% increase in volumes. EBITDA grew 8% year-on-year to INR 146 crore, and PAT saw an impressive 18% increase to INR 70 crore. Despite a challenging market with continued pricing pressure across segments, the company maintained profitability and saw a steady recovery in volumes, particularly in the pharmaceutical end-use market and Agrochemical sector.

The Specialty Chemicals segment continued its strong performance, reporting 12% year-on-year revenue growth and a 50% year-on-year increase in EBITDA to INR 125 crore, with margins holding steady at 26%. This was fueled by robust demand for Pyridine and Diketene derivatives, which showed high double-digit growth both quarter-on-quarter and year-on-year. The CDMO business successfully delivered volumes for a new Agro CDMO innovator contract, and the company has added 10+ new molecules to its portfolio with an estimated peak annual revenue potential of INR 1,200 crore.

The Nutrition & Health Solutions segment experienced strong volume growth across most segments, achieving record high volumes in both vitamin B3 and B4. However, short-term pricing pressure, particularly in feed-grade vitamins, led to a marginal 1% year-on-year revenue decline and a 13% year-on-year EBITDA decline, with margins settling in the 12-14% range. The company expects margin improvement in coming quarters as prices stabilize and the share of higher-value cosmetic and food-grade products increases. The new cGMP facility is ramping up, and EU anti-dumping duties on Chinese choline are creating a good pipeline for future growth.

The Chemical Intermediates segment delivered 20% sequential revenue growth and 6% year-on-year, achieving its highest quarterly revenue and volumes in the last 6 quarters. This was driven by strong volume expansion in Ethyl Acetate and Acetic Anhydride. Despite market pricing pressures, the segment's EBITDA remained marginally stable quarter-on-quarter, with sustained focus on cost efficiency helping to maintain margins. The Acetyls business, while volatile, showed good volume performance in the quarter, influenced by the paracetamol and agrochemical markets, and European demand for Acetic Anhydride.

Jubilant Ingrevia is actively pursuing growth through several strategic initiatives. The company expanded its opportunity funnel to over 100+ active opportunities, representing a peak annual revenue potential of INR 3,500 crore. Progress is being made in new growth segments like Cosmetics and Semi-conductor Chemicals, with multiple products developed and increasing customer traction. The company plans to launch 18 new products in FY26 and is on track to start serving a major CDMO order in early 2026, with a new multipurpose plant in Gajraula expected to be completed by late 2026.

The company incurred INR 59 crore in capital expenditure during Q2 FY26, bringing the year-to-date total to INR 109 crore, primarily for the CDMO Agro plant at Bharuch and the new multipurpose facility in Gajraula. A total capex of INR 600 crore is planned for FY26, funded by internal accruals. Operational efficiency is being enhanced through a INR 100 crore+ per annum lean savings program and increased renewable power usage, which now stands at 28% and is targeted to reach 35% soon. A new boiler in Bharuch is also scheduled for commissioning in Q3 FY26 to further reduce energy costs.

Jubilant Ingrevia is significantly strengthening its R&D capabilities, expanding its team by almost 20% and investing in new equipment and infrastructure. A dedicated Semiconductor R&D lab is being established in Greater Noida to accelerate innovation in this high-tech segment, which is viewed as a 5-10 year journey. The company's R&D spend, particularly for Specialty and Nutrition businesses, is expected to increase to 2x-2.5x of current levels as a percentage of revenue, supporting a pipeline of 50+ products under development.