Jubilant Pharmova Limited — Q3 FY25 earnings call

Call held 24 Feb 2025

Management summary

Jubilant Pharmo delivered a strong performance update during its 2025 Investor Meet, highlighting a successful turnaround in its Generics and Radiopharmacy businesses. Management unveiled an ambitious 'Vision 2030' roadmap focusing on specialty pharmaceuticals and high-margin CDMO services. With 5 out of 6 facilities now VAI compliant and a clear path to zero net debt, the company is pivoting from a recovery phase to aggressive long-term growth.

Highlights

  • Vision 2030 target set to double revenue to ₹13,500 crores from ₹6,700 crores in FY24.

  • Trailing 12 Months (TTM) revenue as of Dec '24 reached ₹7,000 crores with an EBITDA margin of 16.3%.

  • Net Debt to EBITDA significantly reduced to 1.4x in Dec '24 from 2.9x in FY23.

  • Radiopharma segment remains the largest contributor, accounting for over 45% of total revenue.

  • Generics business achieved EBITDA break-even, a major turnaround from -30% margins two years ago.

  • CDMO Sterile Injectables capacity doubling in Spokane with a US $285 million expansion project.

  • Targeting zero net debt and high-teens ROCE by FY30.

Concerns

  • Montreal Facility OAI Classification

Key financials

2 periods

Headline

  • Net Debt to EBITDA
    1.4×
    YoY -51.7%
  • Net Debt
    ₹2,500 Cr

TTM

  • Revenue
    ₹7,000 Cr
    YoY +12.9%
  • EBITDA Margin
    16.3%

What they filed

Q1 FY27: revenue up 12.8%, net profit up 25.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue61 56 61 60 66 +8%67 +20%70 +16%67 +13%
EBITDA10 10 11 10 12 +18%12 +22%15 +33%12 +17%
Net profit11 5 14 6 -6 −161%7 +25%57 +321%7 +26%
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

  • Radiopharma
    45% Revenue Contribution7.5% Radiopharmacy EBITDA Margin
  • Allergy Immunotherapy
    40% EBITDA Margin
  • CDMO Sterile Injectables
    21% EBITDA Margin (TTM)
  • Generics
    0% EBITDA Margin

Guidance & targets

Revenue

  • Total Revenue Revenue · by 2030 · High confidence ₹13,500 crores

    From ₹6,700 crores today

    we aspire by FY30 to reach Rs. 13,500 Cr.

    — Priyavrat Bhartia, Managing Director

Margin

  • EBITDA Margin Margin · by 2030 · High confidence 23-25%

    From 15% today

    in FY30, we hope to be between 23% and 25%.

    — Priyavrat Bhartia, Managing Director

  • Generics EBITDA Margin Margin · by FY29-30 · Medium confidence 15-17%

    From 0% today

    our goal is to double the top line and achieve a 15-17% EBITDA margin by FY 29-30

    — Dr Jaidev Rajpal, CEO - Generics

Debt

  • Net Debt Debt · by 2030 · High confidence Zero

    From ₹2,500 crores today

    we hope to be zero net debt company by FY30.

    — Priyavrat Bhartia, Managing Director

Other

  • ROCE Other · by 2030 · Medium confidence High Teens / 20%

    From High Single Digits today

    We will get at least 20% ROCE over a very, you know, short or a medium term

    — Arvind Chokhany, Group CFO

Capacity

  • PET Pharmacies Capacity · by FY28 · High confidence 9

    From 3 today

    we're growing it from three to nine sites... We expect all of our pharmacies to be functional by FY28.

    — Harsher Singh, CEO - Radiopharma

Risks & concerns

  • Montreal Facility OAI Classification

    high

    The facility is currently under OAI; remediation is ongoing with a target for FDA re-inspection by end of FY26.

    Both acknowledged

  • US-Canada Trade Tariffs

    medium

    Potential for short-term impact on Radiopharma supply chain; mitigation involves US-based inventory and tech transfers.

    Analyst downplayed

  • Biotech Funding Environment

    medium

    Management notes we are 'getting out of the winter season' but not yet in 'summer' regarding biotech funding levels.

    Management acknowledged

Areas of evasion (2)

  • Specific revenue per pharmacy figures (cited as proprietary).
  • Detailed clinical trial data for MIBG before FDA sharing.

Q&A highlights

2 direct
Montreal Facility OAI Status Direct
the plan is by the end of the fiscal year 26, we would invite the FDA back and ultimately remove the OAI classification.

Regulatory clearance of the Montreal facility is critical for de-risking the CDMO and Ophthalmic business.

Asked by Not identified

GLP-1 Opportunity Participation Partial
I don’t think it’s going to be the pre-fill syringe or the GLP’s play but I do think there could be some sort of flex lines... long term, our 4+ year plan, absolutely.

Management is cautious about immediate GLP-1 entry in CDMO due to capacity constraints but sees long-term potential.

Asked by Not identified

Impact of US-Canada Geopolitical Tariffs Direct
we have already put in place... measures to build more resilient supply chain that is less dependent on a single market like Canada today. That includes holding inventories in the US.

Addresses a key macro risk for the Radiopharma business which relies on cross-border supply chains.

Asked by Not identified

2 min read 5 chapters

Detailed narrative

Vision 2030: A Roadmap to ₹13,500 Crore Revenue

Jubilant Pharmo has set an aggressive target to double its revenue to ₹13,500 crores by FY30, up from ₹6,700 crores in FY24. This growth is expected to be accompanied by significant margin expansion, with EBITDA targets moving from 15% to a range of 23-25%. The company plans to achieve this through a mix of specialty product launches in Radiopharma and doubling capacity in its CDMO Sterile Injectables business.

Radiopharma: Moving Up the Value Chain

The Radiopharma segment, contributing over 45% of revenue, is pivoting towards PET imaging and advanced therapeutics. The company is investing US $50 million to expand its PET pharmacy network from 3 to 9 sites by FY28, targeting an ROCE of over 20%. Additionally, the MIBG therapeutic for Neuroblastoma is expected to file with the FDA in H2 FY25, with a peak sales potential of US $70-$100 million.

CDMO Sterile Injectables: Capacity and Technology Lead

Management is doubling sterile injectable capacity at its Spokane facility, a US $285 million project partially funded by the US government. The new 'Line 3' will feature advanced isolator technology, which is increasingly demanded by big pharma for high-value biologics. Commercial revenues from this expansion are slated to begin by the end of 2026 (FY27), with segment EBITDA margins expected to exceed 25%.

Generics Turnaround and Future Growth

The Generics business has successfully reached EBITDA break-even after being at -30% margins two years ago. With the Roorkee facility now VAI compliant, the company plans to launch 6-8 products annually in the US market. The long-term goal for this segment is to double the top line and achieve 15-17% EBITDA margins by FY30 through a combination of internal ANDA launches and in-licensing.

Strategic Acquisition in CRDMO

Jubilant is acquiring an 80% stake in Pierre Fabre's facility in France to bolster its capabilities in Antibody-Drug Conjugates (ADC) and monoclonal antibodies. This acquisition provides a strategic foothold in Europe and aligns with the company's goal to triple CRDMO revenues by FY30. The company estimates a total CAPEX of US $150 million for this segment to sustain a 20% ROCE.

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