J.B. Chemicals & Pharmaceuticals (JBCP IN) – Q2FY26 Result Update – Another quarter of strong margins – BUY
Published on 12 Nov 2025
J.B. Chemicals & Pharmaceuticals (JBCP) Q2FY26 adjusted EBITDA growth of 14% YoY was in line with our estimates. Revenue growth across key segments (domestic and CDMO) remained healthy during the quarter. We believe JBCP growth momentum to continue driven by 1) geographical expansion of legacy brands 2) improvement in MR productivity 3) scale up in acquired brands 4) launch of new products & therapies 5) scaling up contract manufacturing business and 6) strong FCF generation. Further margins will continue to improve beyond FY27 with grant of perpetual license of acquired opthal portfolio. Our FY26E/27E EPS broadly remains unchanged. We expect EPS CAGR of 22% over FY25-28E. At CMP, the stock is trading at 29x FY27E EPS. We maintain ‘BUY’ rating with TP of Rs2,100/share, valuing at 30x Sept 2027E EPS.
