Jubilant Ingrevia (JUBLINGR IN) – Q4FY26 Result Update – USD300mn CDMO contract commenced in March’26 – Downgrade to ‘REDUCE’
Published on 27 May 2026
JUBLINGR reported consolidated revenue of Rs11.8bn in Q4FY26, broadly in line with our estimates. The Chemical Intermediates segment grew 10% QoQ and 15% YoY, driven by higher acetic acid prices following supply disruptions in the Middle East. Acetic Anhydride volumes increased YoY, while remaining stable sequentially. The Nutrition & Health Solutions segment reported growth of 15% QoQ and 21% YoY, supported by double digit QoQ and YoY volume growth, led by Niacinamide. In the Specialty Chemicals segment, revenue growth was driven by a recovery in volumes across business lines, with Fine Chemicals and Agro Chemicals leading the overall growth. However, Pyridine and Picoline prices continued to remain under pressure due to competitive intensity from Chinese suppliers. The company also commenced deliveries under its USD300mn agrochemical CDMO contract during Q4FY26. Looking ahead, we expect the Specialty Chemicals segment to remain the key growth driver, supported by the ramp-up of the agrochemical CDMO contract. However, headwinds in the Chemical Intermediates segments are likely to remain a near-term challenge. At the current market price, the stock trades at an implied valuation of 27x FY28 EPS. We downgrade to REDUCE rating with a target price of Rs647, based on our SOTP valuation methodology.
