JB CHEMICALS & PHARMACEUTICALS (=) : 4QFY26 first take: Temporary integration-led miss clouds strong performance in core business

研报英文原文证据摘录

JB CHEMICALS & PHARMACEUTICALS (=) : 4QFY26 first take: Temporary integration-led miss clouds strong performance in core business

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PHARMACEUTICALS

JB CHEMICALS & PHARMACEUTICALS NEUTRALPRICE* INR2,209  TARGET PRICE INR2,270 (UPSIDE 3%)

FLASH NOTE

4QFY26 first take: Temporary integration-led miss clouds strong

performance in core business

11 MAY 2026 Securities Research Report Production time: 18:04* (London time)

Research Analyst & Publishing Entities

Tausif Shaikh BNP Paribas Securities India Private Limited +91 22 6196 4037 tausif.shaikh@asia.bnpparibas.com

BNPP view:

JBCP’s 4QFY26 revenue/EBITDA missed our estimates by 13%/22% and consensus by 11%/17%. While headline

numbers look disappointing, the miss was largely driven by restructuring within JBCP post TRP acquisition and

alignment of JBCP’s trade and sales practices with TRP. Domestic formulation revenue grew only 1% y-y but RX

business was 11% y-y, beating IPM growth of 10%, indicating a strong quarter for JBCP. Chronic portfolio grew 19%

vs IPM growth of 14%. Additionally, International business was also impacted by one-off inventory rationalisation,

change in credit practices and shipment delays due to geopolitical concerns in Middle East.

JBCP’s core business delivered a strong quarter with double-digit growth in Rx business (outperforming IPM), but

restructuring and alignment activities led to a flat quarter. Management highlighted that these restructuring impacts are

temporary, and we can expect normal course of business to resume from 1QFY27, while core business performance

remains robust. JBCP highlighted that they remain optimistic of a strong improvement in gross margin and EBITDA

margin in the core business, while implementation of cost synergies remains on track as per previous guidance.