J.B. Chemicals & Pharmaceuticals (JBCP IN) – Q4FY26 Result Update – Operational reset quarter – BUY
Published on 13 May 2026
J.B. Chemicals & Pharmaceuticals (JBCP) Q4FY26 adjusted EBITDA was flat YoY impacted by certain one offs as company initiated post-acquisition integration activities. Revenue growth across key segments, including domestic business and CDMO, remained subdued during the quarter. Performance was impacted by several transitional measures undertaken during the period, including distribution network optimisation, discontinuation of low-margin trade generics, inventory rationalisation, and changes in credit practices. 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. Our FY27E/28E EPS stands reduced by 1-3%. We expect EBIDTA CAGR of 20% over FY26-28E. At CMP, the stock is trading at 28x FY28E EPS. We maintain ‘BUY’ rating with TP of INR 2,400/share, valuing at 32x FY28E EPS.
