Jubilant Ingrev.

Jubilant Ingrevia reported stable overall business performance in Q3 FY26, with revenue at INR1,051 crore, slightly down from INR1,057 crore in Q3 FY25. Despite macroeconomic headwinds and softer pricing across all three segments, the company achieved nearly 9% volume growth during the quarter. For the 9-month period, revenue increased by 3% and EBITDA rose by 8% to INR436 crore, demonstrating resilience.

The Specialty Chemicals segment continued to be a key growth driver, delivering revenue of INR458 crore in Q3 FY26. The segment maintained robust EBITDA margins above 25%, with absolute EBITDA at INR116 crore. On a 9-month basis, Specialty Chemicals revenue grew 7% to INR1,421 crore, and EBITDA surged 27% to INR371 crore, with margins remaining above 26%. This performance was supported by a favorable product mix and ongoing cost optimization initiatives.

The Nutrition business recorded INR201 crore in revenue for Q3 FY26, a 6% year-on-year increase, driven by healthy volume growth across core products, reaching its highest overall volumes in the past 7 quarters. However, segment EBITDA declined 10% year-on-year to INR23 crore, with margins trending lower at 11% due to price declines in vitamin B3 and choline. Margins are expected to improve in coming quarters as prices recover and the share of cosmetic and food-grade products increases.

The Chemical Intermediates segment reported revenue of INR393 crore in Q3 FY26, slightly down from INR400 crore in Q3 FY25. The segment maintained its market share and recorded year-on-year volume growth. Pricing contraction and the pass-through of lower raw material costs in an oversupplied market impacted EBITDA. The company continues to advance cost initiatives to absorb these impacts, with an uptick in acetic acid prices expected to translate into better realizations for acetic anhydride and ethyl acetate.

Jubilant Ingrevia is making significant progress in its CDMO business, with an expanded opportunity funnel of over 100 active opportunities representing a peak annual revenue potential of INR3,500 crore. Over the past year, 16 molecules have been confirmed with an estimated peak potential of INR1,400 crore. The company is on track to commence delivery of a major CDMO order in Q4 FY26, and construction has begun on a new multipurpose plant in Gajraula to strengthen capacity for CDMO and fine chemicals.

The company incurred INR366 crore in capex year-to-date, primarily for the CDMO agro plant at Bharuch and the new multipurpose facility at Gajraula, funded through internal accruals. Approximately INR500 crore is planned for capex in FY27, also to be supported by internal accruals. A new boiler was commissioned at the Bharuch site, enhancing operational efficiency. Renewable power share increased to 34% in Q3, up from 28% in Q2, contributing to a 10% year-on-year reduction in fuel expenses.

Across the broader chemical industry, volumes are recovering, but pricing pressure persists. In the pharmaceutical end-use market, volumes remained steady, particularly in fine chemicals. The agrochemical sector is seeing recovery in volumes, though demand-supply imbalance still affects prices. Niacinamide demand remains strong, but pricing is under strain. Management anticipates pricing to bottom out and expects a gradual recovery across segments, with some uptick already observed in pyridine derivatives, vitamin B3, and acetic acid.