JUBLPHARMA - Jubilant Pharmo

📊 NSE: JUBLPHARMA 🏢 Pharmaceuticals - Indian - Bulk Drugs 📅 Last Updated: 12/14/2025 8:43

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2'FY26 grew 12% YoY to INR 1,966 Cr, driven by the new third line in CDMO Sterile Injectables and growth in Radiopharma, Allergy Immunotherapy, and CRDMO. In FY25, CDMO Sterile Injectables EBITDA grew 52% with margins expanding from 17.2% to 23.0%, while CRDMO EBITDA rose 32.3% with margins improving from 15.5% to 19.4%.

Geographic Revenue Split

The US market is the primary revenue driver, contributing 82% of total revenue in H1'FY26. The origin of goods sold in the US is 72% from the US, 17% from Canada, and 12% from India.

Profitability Margins

Normalised PAT Margin for Q2'FY26 stood at 6.3%, an improvement of 50 bps YoY. For H1'FY26, the Normalised PAT margin was 5.8%, up 96 bps YoY. FY25 Consolidated Net Profit surged to INR 836.3 Cr from INR 72.7 Cr in FY24, reflecting a substantial turnaround in the Generics segment and operational excellence.

EBITDA Margin

EBITDA margin for Q2'FY26 was 17.8%, reflecting a 24 bps YoY increase. H1'FY26 EBITDA margin was 16.8%, up 40 bps YoY. Consolidated EBITDA for FY25 was INR 1,230.5 Cr, a 26.9% increase over FY24.

Capital Expenditure

The company is executing a CAD 145 million (approx. INR 900 Cr) modernization and capacity expansion project in Montreal to double sterile production capacity. Additionally, revenue generation has commenced from the new third line at the Spokane, US facility in Q2'FY26.

Credit Rating & Borrowing

The company has outstanding Secured Redeemable Unlisted Non-Convertible Debentures (NCDs) of INR 70 Cr as of March 31, 2025, with the tenure extended by five years. Finance costs were reduced in H1'FY26, contributing to a 32% YoY increase in Normalised PAT to INR 227 Cr.

⚙️ Operational Drivers

Raw Materials

Active Pharmaceutical Ingredients (API), sterile fill-finish components, and chemicals for radiopharmaceuticals. The API business reported revenue of INR 137 Cr in Q2'FY26, up 8% YoY.

Import Sources

Sourcing is diversified across the US (72% of US sales origin), Canada (17%), and India (12%), with a 'China plus one' strategy implemented to increase backward integration and supplier resilience.

Key Suppliers

Not specifically named in the documents, but the company utilizes select Contract Manufacturing Organisations (CMOs) for its Generics business and maintains a diversified supplier base for its API segment.

Capacity Expansion

CDMO Sterile Injectables: New third line at Spokane, US is now operational. Montreal, Canada: CAD 145 million project to double sterile production capacity is expected to be operational in H2 FY26.

Raw Material Costs

Total operating expenditure for FY25 was INR 6,060.8 Cr on a consolidated basis, representing approximately 83.7% of revenue. The company focuses on cost optimization and improved revenue mix toward high-margin custom manufacturing.

Manufacturing Efficiency

The Generics segment transitioned from in-house manufacturing to a CMO-based model to focus on profitable product lines and margin enhancement. CDMO API asset utilization is being increased by shifting the mix toward custom manufacturing.

Logistics & Distribution

The company maintains a strong sales and marketing presence in the US, leveraging products from its India facility and CMOs to serve major wholesalers and retail chains.

📈 Strategic Growth

Expected Growth Rate

11%

Growth Strategy

Growth will be achieved through the ramp-up of the new third line in Spokane, doubling capacity in Montreal by H2 FY26, and scaling contracts with three new large pharmaceutical companies onboarded in the last year. The company is also exploring monetization of its Proprietary Novel Drugs (JBI-802, JBI-778) through licensing or external fundraising following clinical data readouts in CY 2026.

Products & Services

Radiopharmaceuticals, Allergy Immunotherapy, Sterile Injectables (CDMO), Solid Dosage Formulations (Generics), Drug Discovery Services (CRDMO), and Proprietary Novel Drugs for oncology.

Brand Portfolio

Jubilant Biosys, Jubilant HollisterStier, Jubilant Cadista, Draximage, and Jubilant Therapeutics.

New Products/Services

Proprietary Novel Drugs JBI-802 and JBI-778 are in clinical trials; JBI-2174 has launched a Phase I first-in-human study for cancer sub-sets in India.

Market Expansion

Expansion into new geographies for existing products and increasing partnerships with large pharma companies to leverage expanded infrastructure in India and North America.

Market Share & Ranking

Recognized as a 'Partner of Choice' by leading global pharmaceutical companies; Jubilant HollisterStier is a leading global CMO in sterile fill-finish.

Strategic Alliances

Partnership with the Government of Canada (Strategic Innovation Fund) providing CAD 23.8 million and the Province of Quebec providing CAD 25 million for capacity expansion.

🌍 External Factors

Industry Trends

The industry is shifting toward outsourced sterile manufacturing and specialized drug discovery. Jubilant is positioning itself by doubling sterile capacity and integrating API with drug discovery services.

Competitive Landscape

Competes with global CDMOs and generic manufacturers; competitive advantage is derived from a diversified portfolio and manufacturing presence in North America.

Competitive Moat

Moat is sustained by high regulatory barriers (US FDA/international compliance), specialized manufacturing capabilities in Radiopharma and Allergy, and long-term 'Partner of Choice' relationships with large pharma.

Macro Economic Sensitivity

Sensitive to US healthcare spending and biotech funding environments; softening demand in the biotech sector was noted due to uncertain economic conditions.

Consumer Behavior

Increased end-user awareness of cybersecurity risks and a shift toward specialized oncology treatments are driving demand for the company's novel drug pipeline.

Geopolitical Risks

The proposed US Biosecure Act is expected to drive 'friend-shoring' demand toward Indian CROs, benefiting Jubilant's CRDMO business.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to US FDA current Good Manufacturing Practices (cGMP) and Regulation 24A of SEBI Listing Regulations for material subsidiaries.

Environmental Compliance

The company maintains an Enterprise Risk Management program and ESG training for personnel to comply with changing global standards.

Taxation Policy Impact

Effective tax rate for Q2'FY26 was abnormally higher due to a one-time net tax expense of INR 13 Cr related to the slump sale of the API business.

Legal Contingencies

Jubilant Biosys Limited received an Adjudication Order for GST, interest, and penalty for FY 2021-22; the company is contesting this before the GST Appellate Authority and expects no financial impact.