J.B. Chemicals & Pharmaceuticals (JBCP IN) – Q3FY26 Result Update – In line quarter aided by exports – BUY
Published on 19 Jan 2026
J.B.Chemicals & Pharmaceuticals (JBCP) Q3FY26 adjusted EBITDA growth of 16% YoY was in line with our estimates. 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 FY27E with grant of perpetual license of acquired opthal portfolio. Mgmt cited transaction with Torrent pharma to be completed by Q4FY26 end and post that another 6-9 months for merger to get completed. Our FY27E/28E EPS stands reduced marginally by 2-3%. We expect EPS CAGR of ~22% over FY25-28E. At CMP, the stock is trading at 25x FY28E EPS. We maintain ‘BUY’ rating with TP of Rs2,300/share, valuing at 30x FY28E EPS.
