JB CHEMICALS & PHARMACEUTICALS (=) : Gradual recovery in transition phase dents few quarter earnings

研报英文原文证据摘录

JB CHEMICALS & PHARMACEUTICALS (=) : Gradual recovery in transition phase dents few quarter earnings

EQUITIES

PHARMACEUTICALS

JB CHEM. & PH. NEUTRALPRICE* INR2,209  TARGET PRICE INR2,100 (DOWNSIDE 5%) TARGET -7%PRICE EPS 03/27e-9% EPS 03/28e-8%

Gradual recovery in transition phase dents few quarter earnings

JBCP’s 4QFY26 revenue declined 5% y-y, missing BNPPe/BBGe by 13%/11%, due to realignment12 MAY 2026

Securities Research Report of trade/sales practices and credit policies with TRP. Domestic business reported 1% y-y growth,

Production time: 08:59* (London time)

despite the strong growth in Rx business, owing to the impact of discontinuation of trade generics

Research Analysts & Publishing Entities

business. While management highlighted that synergy-driven margin expansion remains on track,

Tausif Shaikh we believe valuation upside is limited post the acquisition by TRP. Retain Neutral.BNP Paribas Securities India Private

Limited

+91 22 6196 4037 Domestic reported growth lags Rx performance; expect gradual recovery in FY27

tausif.shaikh@asia.bnpparibas.com 4QFY26 domestic revenue grew by 1% y-y largely owing to the realignment of trade/sales practices

and credit policies with TRP, along with the impact of discontinuation of the trade generics business.

Management highlighted that most of the transition-related reset has been undertaken and expects

a gradual recovery in domestic business growth. We expect JBCP to return to double-digit growth in

2HFY27 and expect 1HFY27 to be impacted due to the adoption of new policies and practices.

Execution key in international business; margin expansion trajectory on track

Export formulations declined 8% y-y due to supply disruptions in the Middle East along with

integration-related adjustments.