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    Jubilant Pharmo

    JUBLPHARMA
    Healthcare·22 May 2026
    Management Summary

    Jubilant Pharmova reported strong revenue growth for Q4 and Full Year FY26, driven by key segments like CDMO, radiopharma, and generics. However, profitability was impacted by supply shortages in SPECT products and under-absorption of costs at the CMO Montreal facility, leading to margin compression. The company anticipates a stronger H2 FY27 with stabilization of Montreal production and commercialization of new CDMO lines, while targeting net debt zero by FY2030.

    Highlights

    5

    • Q4 FY26 revenue grew by 19% YoY to ₹2,290 Crores, driven by radiopharma, allergy immunotherapy, CDMO sterile injectables, and generics.

    • Full Year FY26 revenue grew by 14% YoY to ₹8,280 Crores, with growth across all business units, particularly CDMO Sterile Injectables.

    • Full Year FY26 Normalized PAT grew by 7% to ₹442 Crores due to improved operating performance.

    • CDMO Line 3 is expected to reach peak revenue of $80-90 million one-and-a-half to two years earlier than originally projected.

    • Discovery business grew 15% to north of ₹650 Crores in FY26, with proportionate EBITDA growth.

    Concerns

    4

    • Q4 FY26 EBITDA margin decreased by 272 bps YoY to 15.7% due to shortage in supply of SPECT products in Radiopharmaceuticals and under-absorption of costs in CMO Montreal.

    • Full Year FY26 EBITDA margins decreased by 99 bps YoY to 15.9% due to lower production at CMO Montreal, particularly in H2.

    • Montreal plant incurred a loss of approximately ₹200 Crores (including exceptional items) in the last financial year, and the next financial year is expected to be similar.

    • H1 FY2027 EBITDA margin for the consolidated business will be temporarily impacted by the supply shortage of SPECT products, with an estimated revenue impact of $14 million from SPECT products.

    Key financials

    Metrics

    8

    Periods

    2

    Q4 FY26

    4
    • Revenue
      ₹2,290 Cr
      YoY+19%
    • EBITDA
      ₹363 Cr
      YoY+2%
    • EBITDA Margin
      15.7%
      YoY-2.7%
    • Normalized PAT
      ₹129 Cr

    FY26

    4
    • Revenue
      ₹8,280 Cr
      YoY+14.0%
    • EBITDA
      ₹1,326 Cr
      YoY+8%
    • EBITDA Margin
      15.9%
      YoY-1.0%
    • Normalized PAT
      ₹442 Cr
      YoY+7.0%

    Segment breakdown

    Discovery Business (CRO)
    ₹650 Cr FY26 Revenue— FY26 EBITDA
    Generics Business
    13% FY26 Revenue Growth2.5% FY26 Margin Growth— EBITDA Margin
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹1,668 crores

    Debt

    Net ₹1,952 crores

    Guidance & targets

    11
    CategoryTargetPriority
    Profitability
    EBITDA Margin (Consolidated)
    strengthening from H2 FY2027 onwards
    		High
    Profitability
    Radiopharma Business Margins
    38% to 40%
    		High
    Profitability
    API Business EBITDA Margin
    go up
    		Medium
    Profitability
    Consolidated EBITDA Margin (H2 FY27)
    17% to 18%
    		High
    Revenue Growth
    Radiopharma Business Growth
    low double digits
    		High
    Revenue
    CDMO Line 3 Peak Revenue
    $80 million to $90 million
    		High
    Revenue
    CDMO Line 3 Tech Transfer Revenue
    $60 million to $80 million
    		High
    Debt
    Net Debt
    zero
    		High
    Tax Rate
    Tax Rate
    going down gradually
    		Medium
    Product Launch
    MIBG NDA Filing
    in the second half of FY2027
    		High
    Product Launch
    PET Pharmacies Commercialization
    first three of them should be commercialized next year
    		High

    CMO Montreal production stabilization

    H2 FY2027
    CurrentUnder-absorption of costs, similar losses expected in FY27
    TargetProduction stabilizes, meaningful reduction in P&L losses

    Why it matters

    Crucial for overall EBITDA margin improvement and reducing losses from a key facility.

    As production at CMO Montreal stabilizes, we expect EBITDA margin to start strengthening from H2 FY2027 onwards.

    How to verify

    key_financials.metrics[label='EBITDA Margin']

    Risks & concerns

    4
    RiskSeverity

    Supply shortage of SPECT products

    Caused Q4 FY26 EBITDA margin decrease and expected to impact H1 FY2027 EBITDA margin with a $14 million revenue impact. — Management acknowledged

    high

    Under-absorption of costs at CMO Montreal

    Contributed to Q4 FY26 EBITDA margin decrease and full-year margin decline. Montreal plant incurred ~₹200 Crores loss in FY26, similar expected for FY27. — Management acknowledged

    high

    Competitive intensity in Discovery Business (large pharma segment)

    Expected in the short term, though biotech segment demand is expected to improve. — Management acknowledged

    medium

    Regulatory approval variability for PET pharmacies

    Commercialization of PET pharmacies is dependent on FDA PAI, introducing variability. — Management acknowledged

    medium

    Q&A highlights

    8

    “So specifically for line 3, we have approximately 10 plus products, as you mentioned, across multiple formats and vial sizes undergoing tech transfer as we speak. Specifically, commercial production, as to your question, will commence in late FY2027, subject to FDA approval of these products. On the mix of these 10 plus products, approximately 80% of them, the majority of them are these complex biologics... we expect to reach peak revenue in line 3 in one-and-a-half to two years earlier as projected and achieve an 80 million to 90 million specifically for line 3.”

    Provides specific details on the product mix, timeline for commercial production, and revenue potential for the new CDMO Line 3, highlighting its strategic importance.

    asked by Shrikant Akolkar

    3 min read6 chapters

    Detailed Narrative

    01

    Q4 & Full Year FY26 Performance Overview

    Jubilant Pharmova reported a strong Q4 FY26 with revenue growing 19% year-on-year to ₹2,290 Crores, driven by radiopharma, allergy immunotherapy, CDMO sterile injectables, and generics. However, Q4 EBITDA increased only 2% to ₹363 Crores, with the margin contracting by 272 basis points to 15.7%. For the full year FY26, revenue grew 14% to ₹8,280 Crores, and Normalized PAT increased 7% to ₹442 Crores. Full-year EBITDA grew 8% to ₹1,326 Crores, but margins declined by 99 basis points to 15.9%.

    02

    CDMO Business Expansion and Outlook

    The CDMO sterile injectables business was a key growth driver. The company is expanding manufacturing capacity with state-of-the-art isolator fill-finish lines at Spokane (US) and Montreal (Canada). Line 3 at Spokane has approximately 10+ products undergoing tech transfer, with commercial production expected to commence in late FY2027. This line is projected to reach peak revenue of $80-90 million one-and-a-half to two years earlier than originally projected, with $60-80 million in tech transfer revenues expected in FY2027.

    03

    Radiopharma Business Challenges and Growth Drivers

    The radiopharma segment faced challenges in Q4 FY26 and is expected to see margin pressure in H1 FY2027 due to a shortage in SPECT product supply and under-absorption of costs at CMO Montreal. The revenue impact from SPECT products in H1 FY27 is estimated at $14 million. However, the company expects the business to grow in low double digits in FY2027 with margins in the 38-40% range. The MIBG NDA filing is anticipated in H2 FY2027, and the company plans to self-commercialize this product. Ruby-Fill continues strong growth, benefiting from market expansion, market share gains, and a 'razor blade' annuity model.

    04

    API and Discovery Business Performance

    The API business is making progress in custom manufacturing, with new customers being onboarded, which is expected to drive utilization and improve the current 15% EBITDA margin in the short to medium term. The Discovery business (CRO segment) grew 15% in FY26 to over ₹650 Crores, with proportionate EBITDA growth. While competitive intensity is expected in the large pharma segment, demand from the biotech segment is anticipated to improve.

    05

    Capital Expenditure and Debt Reduction Strategy

    The company incurred ₹1,668 Crores in capex in FY26 and expects a similar amount in FY27. Key ongoing projects include Spokane Line 4 ($34 million remaining), Montreal Line 5 ($87 million pending), and PET pharmacies ($50 million pending). Net debt stands at ₹1,952 Crores. The company is committed to achieving net debt zero by FY2030, with reductions expected from FY2028 onwards as Line 3 and Line 4 contribute to revenue and EBITDA.

    06

    FY2027 Margin Outlook and PET Pharmacies

    FY2027 EBITDA margin is expected to be a 'story of two halves,' with H1 facing temporary impact from SPECT product supply shortages. H2 FY2027 is projected to see higher margins, in the range of 17-18%, as production at CMO Montreal stabilizes. The first three PET pharmacies are expected to be commercialized in FY2027, though timelines are subject to FDA PAI approvals, and cyclotrons typically take 3-4 years to reach peak utilization.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.