Jubilant Ingrevia Limited — Q2 FY26 earnings call

Call held 27 Oct 2025

Management summary

Jubilant Ingrevia reported a strong Q2 FY26 with 7% YoY revenue growth and 18% YoY PAT increase, driven by robust volume expansion and strong performance in Specialty Chemicals. The company achieved its highest quarterly revenue in 10 quarters and made significant progress in its CDMO pipeline and sustainability initiatives. However, pricing pressures in the Nutrition and Chemical Intermediates segments, along with short-term market volatility, impacted margins in those areas.

Highlights

  • Overall revenue reached INR 1,121 crore, marking the highest quarterly turnover in the last 10 quarters.

  • Volume grew approximately 18% during the quarter despite macroeconomic headwinds.

  • EBITDA for the quarter stood at INR 146 crore, an 8% year-on-year increase.

  • Profit After Tax (PAT) was INR 70 crore, an 18% increase year-on-year.

  • Specialty Chemicals segment EBITDA grew 50% year-on-year to INR 125 crore with margins holding steady at 26%.

  • Expanded opportunity funnel to over 100+ active opportunities with a peak annual revenue potential of INR 3,500 crore.

  • Successfully commissioned renewables O2 Power at Bharuch site, increasing renewable power share to 28%.

Concerns

  • Pricing remains under pressure across all segments of the broader chemical industry.

  • Nutrition & Health Solutions segment EBITDA declined 13% year-on-year, with margins trending lower to 12-14% due to short-term pricing pressure.

  • Short-term price volatility in pyridine and picoline, along with a temporary pyridine plant shutdown for maintenance, marginally impacted sequential EBITDA in Specialty Chemicals.

  • US tariffs have created some short-term uncertainty, potentially extending discussion timelines for new business from 3 months to 6-8 months.

Key financials

  1. Revenue ₹1,121 Cr +7.3%YoY
  2. EBITDA ₹146 Cr +8%YoY
  3. PAT ₹70 Cr +18.6%YoY
  4. Volume Growth 18%
  5. Net Debt ₹748 Cr
  6. Net Debt to EBITDA 1.24×

What they filed

Q1 FY27: revenue up 25.2%, net profit up 41.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,045 1,057 1,051 1,038 1,121 +7%1,051 −1%1,179 +12%1,300 +25%
EBITDA124 138 147 142 135 +9%126 −9%163 +11%199 +40%
Net profit59 69 74 75 69 +17%47 −32%86 +16%106 +41%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue GrowthMargins
Specialty Chemicals12%26%
Nutrition & Health Solutions-1%12%
Chemical Intermediates——

Capital allocation

high confidence
  • Capex ₹59 Cr this quarter · ₹600 Cr (FY26) planned internal accruals
    • Upcoming CDMO Agro plant at Bharuch
    • New multipurpose facility in Gajraula
    • Semiconductor R&D facility in Greater Noida
    • New boiler in Bharuch
    • Debottlenecking existing plants (15-20% capacity increase)
    During the quarter, we incurred a capital expenditure of INR59 crore, taking the year-to-date capex spend to INR109 crore. This was primarily directed towards the upcoming CDMO Agro plant at Bharuch and the groundbreaking of our new multipurpose facility in Gajraula, which Deepak just mentioned. The investments were largely funded through internal accruals. Looking ahead, we plan to invest approximately INR600 crore in '26, which will also be supported by internal accruals.
  • Debt Net ₹748 Cr · 1.2× EBITDA
    September '25 was INR748 crore, and net debt-to-EBITDA ratio remained at 1.24x calculated on the basis of trailing 12 months EBITDA.

Guidance & targets

Overall Outlook

  • Growth Momentum Overall Outlook · H2 FY26 · High confidence Continued growth momentum
    Looking ahead to H2 FY '26. We expect continued growth momentum, fueled by progress in our Specialty Chemicals and Nutrition businesses, along with the expected part recovery in Acetyl portfolio.

    — Shyam Bhartia

CDMO

  • Major CDMO order start CDMO · Early 2026 · High confidence Early 2026
    We are also on the track to start serving our major CDMO order in early 2026.

    — Shyam Bhartia

  • New MPP in Gajraula completion CDMO · Late 2026 · High confidence Late 2026
    We hope to complete it by late 2026.

    — Shyam Bhartia

  • Agro-Innovator project commissioning CDMO · Q4 FY26 · High confidence Q4
    On the capex front, we firmly remain on track with the Q4 commissioning of our $300 million Agro-Innovator project, a key milestone in our CDMO growth strategy.

    — Deepak Jain

  • $300M contract supplies start CDMO · Jan to March quarter · High confidence Next quarter (Jan to March)
    And one big one will start the supplies in next quarter, Jan to March quarter.

    — Deepak Jain

  • $300M contract annual revenue CDMO · Annualized · High confidence ~$60 million (INR 500 crore)
    $300 million is a 5-year number. So the annual number is $60 million, which is close to INR500 crore.

    — Deepak Jain

  • Peak revenue for intermediate from $300M contract CDMO · Next 3 years · Medium confidence 4-5x of current supply
    As per at least the direction given to us or visibility given to us by the innovator, the peak revenue could be at least 4 to 5x of what we have supplied. So, we are hopeful and even next year the volume visibility we are getting is at least 50% more than what we got this year. So, I'm hopeful that it will get to that 4 to 5x mark in next 3 years.

    — Deepak Jain

Growth Pipeline

  • Peak annual revenue potential from 10+ new molecules Growth Pipeline · Coming years · High confidence INR 1,200 crore
    We have another 10-plus opportunities in advanced stages of discussions, which we hope to convert in coming quarters. We continue to make rapid progress in our new growth segments, such as Cosmetics and Semi-conductor Chemicals. ... which have already started to show in our FY '26 revenues and are expected to contribute almost INR1,200 crore of peak annual revenues in coming years.

    — Deepak Jain

  • Peak annual revenue potential from 100+ active opportunities Growth Pipeline · High confidence INR 3,500 crore
    These opportunities collectively have peak annual revenue potential of INR3,500 crore.

    — Deepak Jain

Sustainability

  • Renewable power share Sustainability · Steady state (few weeks from now) · High confidence 35%

    From 28% today

    We have successfully commissioned renewables O2 Power at our Bharuch site, taking Ingrevia's Renewable power share to 28%, a significant step toward our clean energy goals. ... So, total in steady state, maybe in a few weeks from now, renewable will be contributing almost 35% of our overall power requirement.

    — Deepak Jain

Operational Efficiency

  • Lean savings program Operational Efficiency · Per annum · High confidence INR 100 crore+
    On the operational front, our INR100 crore plus per annum lean savings program remains firmly on track driving efficiency across the value chain.

    — Deepak Jain

  • New boiler commissioning Operational Efficiency · Q3 FY26 · High confidence Q3 FY26
    In Bharuch, a new boiler is scheduled for commissioning in Q3 FY '26, further enhancing operational efficiency.

    — Deepak Jain

New Products

  • New products launch New Products · FY26 · High confidence 18
    Looking ahead, we expect to launch 18 new products in FY '26, each aligned with emerging market needs and customer priorities.

    — Deepak Jain

Capacity

  • Capacity debottlenecking Capacity · High confidence 15-20%
    We are also debottlenecking capacity in our existing plants by 15% to 20% to serve incremental volumes from new CDMO and Fine Chemical opportunities.

    — Deepak Jain

Nutrition Segment

  • Margin improvement Nutrition Segment · Coming quarters / next year · Medium confidence 16-18%

    From 12-14% today

    However, we expect margin improvement in the coming quarters as price stabilize and the share of cosmetic and food-grade products increase in the overall portfolio. ... that business in steady state, we hope to get to 16% to 18% EBITDA margins, which I think we should be able to get as soon as the volume share of high grades increases to 60%, 70% next year.

    — Varun Gupta / Deepak Jain

Choline Chloride

  • Market share capture Choline Chloride · Coming months and quarters · Medium confidence Meaningful portion
    The overall market, as per our estimates is running into at least 30,000 tons to 40,000 tons. And we are hopeful that as our product gets qualified in coming months and quarters, we will be able to capture a meaningful portion of that.

    — Deepak Jain

Niacinamide

  • Plant utilization volume increase Niacinamide · Within first few months of commissioning · High confidence 25-30%
    We are hoping that within the first few months of commissioning of the plant, we should be able to take our volumes up at least by 25%, 30% vis-a-vis what we had earlier.

    — Deepak Jain

  • Plant utilization level Niacinamide · Sometime by next year · Medium confidence 60-70%
    We are hoping that in 18 to 24 months, we'll get to those numbers. And the initial ramp-up that we have seen between cosmetic and food grade, we are hoping that sometime by next year, we will hit 60%, 70% utilization levels.

    — Deepak Jain

R&D

  • R&D spend as % of Specialty and Nutrition revenue R&D · Coming years · Medium confidence 2x-2.5x of current percentage
    If you look at it from that perspective, our R&D spend will be at least 2x, 2.5x of what you just described. ... So, the right way to look at it is to look at how much we're spending as a percentage of Specialty and Nutrition revenue in coming years.

    — Deepak Jain

Semiconductor Chemicals

  • Journey timeline Semiconductor Chemicals · High confidence 5-10 years
    Semiconductor is more of a 5- to 10-year journey rather than just, let's say, next couple of years, given the nature of that segment, the fact that it is new to India, not just us and the qualification process itself is quite long.

    — Deepak Jain

What to watch in Q3 FY26

CDMO $300M contract supplies start

Jan to March quarter
Current Expected to start next quarter (Jan-Mar)
Target Supplies commenced as planned

Why it matters

This is a major CDMO contract expected to significantly accelerate growth and contribute INR 500 crore annually at peak.

And one big one will start the supplies in next quarter, Jan to March quarter.

Risks & concerns

  • Pricing pressure across segments

    medium

    Across the broader chemical industry, pricing remains under pressure across all segments, impacting revenue growth despite volume gains.

    Management acknowledged

  • Global market conditions and competition

    medium

    Many global players, especially in Europe, are reporting deteriorating financials due to weaker demand, continued pricing pressure, and elevated energy costs.

    Management acknowledged

  • Short-term volatility in Nutrition market

    medium

    Feed-grade vitamin pricing showed short-term volatility globally and in India, leading to a 13% YoY EBITDA decline in the Nutrition segment.

    Management acknowledged

  • Short-term price volatility in pyridine and picoline

    medium

    Short-term price volatility in pyridine and picoline, coupled with a temporary plant shutdown, marginally impacted sequential EBITDA in Specialty Chemicals.

    Management acknowledged

  • US tariffs creating short-term uncertainty for new business

    low

    While direct impact on existing business is minimal (2%), tariffs have caused short-term uncertainty, potentially extending new business discussion timelines from 3 to 6-8 months.

    Management acknowledged

Q&A highlights

7 direct
Choline Chloride market opportunity and Niacinamide plant utilization post anti-dumping duty Direct
On the choline chloride side, as I mentioned in my opening remarks also, we are seeing strong traction with European customers after the anti-dumping duties got imposed on Chinese players. We have already sent a few shipments to Europe in the last quarter as well, and the pipeline is looking very healthy. ... We are hoping that within the first few months of commissioning of the plant, we should be able to take our volumes up at least by 25%, 30% vis-a-vis what we had earlier.

Clarifies the immediate impact and future potential of EU anti-dumping duties on choline chloride and the ramp-up plan for niacinamide volumes.

Asked by Rohan Mehta

Contribution of new molecules to current revenue and future peak revenue potential Partial
Of course, I can't give you the breakup on a quarterly basis because as you can imagine, the CDMO business by nature is slightly lumpy. Having said that, the typical ramp-up of a new CDMO contract, especially when it is focused on innovative molecules is not more than 15% to 20% in the first year going to close to, let's say, 40% to 60% in second year and hopefully reaching the peak revenue by third year of 80% to 100%.

Management explains the lumpy nature of CDMO revenue and typical ramp-up trajectory for new molecules, indicating that current contributions are small but will grow.

Asked by Gaurav Gupta

Impact of US tariffs on business and margins Direct
On the existing business, and I think we have clarified that earlier also, only 2% of our business falls in areas where duties have been imposed. ... As of now, we don't see any big impact of tariffs coming into that, except for the fact that tariffs have created some short-term uncertainty. And hence, some of the discussions, which should have completed in 3 months might be taking 6 months or 8 months. That's the only impact we see as of now.

Provides clarity on the minimal direct impact of US tariffs on existing business and the indirect impact on new business development timelines.

Asked by Gaurav Gupta

Details on the new Semiconductor R&D facility in Greater Noida Direct
In the opening remarks, we talked about semi-conductor R&D lab, not a plant in our Greater Noida facility. This is a facility we are creating to accelerate the pace of R&D and innovation that we are doing in our semi-conductor vertical... So that's the idea. Of course, in our pipeline capex plans, we also plan to set up a new plant, most likely a pilot plant in near future.

Clarifies that the initial investment is for an R&D lab, not a full-scale plant, and outlines the future plan for a pilot plant, indicating a long-term strategic entry.

Asked by Archit Joshi

Clarification on the $300 million CDMO contract and its relation to the INR 1,200 crore revenue potential Direct
Yes, that's $300 million, 5-year contract, that's the big one, which will start in next quarter. That's right, Darshita. ... $300 million is a 5-year number. So the annual number is $60 million, which is close to INR500 crore. ... That's right. Yes, that's the peak annualized revenue number, which we as I was explaining, we hope to get to in the next couple of years. And a significant proportion of that, including the big contract will start to come into our P&L next year itself.

Confirms the large CDMO contract details, its annual revenue contribution, and its inclusion within the broader INR 1,200 crore peak revenue target, providing concrete financial expectations.

Asked by Darshita Shah

Human grade vitamin plant commissioning, utilization, and margin difference with animal grade Direct
Yes. So, that plant is supposed to make both cosmetic and human-grade product. ... We are hoping that in 18 to 24 months, we'll get to those numbers. ... So, this, I think, Siddharth, I have explained in previous calls also, generally, there is at least $2 to $3 delta in pricing between feed grade and the high-value grade, what we call the high-value grade, which is cosmetics and even food and sometimes even pharma grade. Of course, the margin profile also changes accordingly.

Details the ramp-up timeline for the human-grade vitamin plant, expected utilization levels, and the significant pricing and margin premium for high-value grades.

Asked by Siddharth Gadekar

Renewable power contribution and cost differential Direct
So, as I mentioned in my opening remarks, this quarter with Bharuch starting, we have almost touched 28% of our overall power requirement to be served through renewables. And even Gajraula has started, but it's ramping up. So, total in steady state, maybe in a few weeks from now, renewable will be contributing almost 35% of our overall power requirement. ... While the grid power costs anywhere between INR7 to INR9, depending on which state you're talking about, the landed cost for renewable is much lower. It's in the range of INR5 plus/minus.

Quantifies the current and target renewable energy share and highlights the significant cost savings compared to grid power, indicating a positive impact on P&L.

Asked by Nitesh Dhoot

Exclusivity of CDMO arrangements and supply to other innovators Direct
Siddharth, we have a very exclusive arrangement with the innovator there. Our agreement with them is to supply the intermediate in a certain quantity every year. ... No, this is an exclusive arrangement. So, we cannot supply to any other innovator.

Clarifies that the CDMO contracts are exclusive, limiting the company's ability to supply the same intermediate to other innovators, which could impact broader market penetration for specific molecules.

Asked by Siddharth Gadekar

3 min read 7 chapters

Detailed narrative

Overall Performance and Market Conditions

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.

Specialty Chemicals Segment Performance

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.

Nutrition & Health Solutions Segment Performance

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.

Chemical Intermediates Segment Performance

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.

Strategic Initiatives and Growth Pipeline

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.

Capital Expenditure and Operational Efficiency

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.

R&D and Innovation Focus

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Chemicals earnings calls