JB Pharma's Q2 FY26: Strong Domestic Growth and International Momentum

JB Chemicals & Pharmaceuticals Limited, a prominent player in the Indian pharmaceutical sector, has reported a robust financial performance for the second quarter ended September 30, 2025. The company delivered an impressive 8% year-on-year growth in revenue, reaching INR 1,085 crore. This strong top-line expansion was complemented by significant improvements in profitability, with Operating EBITDA increasing by 12% to INR 319 crore and Net Profit surging by 19% to INR 208 crore. These results underscore JB Pharma's consistent ability to outperform the market and execute its strategic objectives effectively.

The domestic formulations business continued to be a key growth driver, registering a 9% year-on-year increase to INR 644 crore. JB Pharma has solidified its position as one of the fastest-growing pharmaceutical companies in India, consistently outperforming the Indian Pharmaceutical Market (IPM). The company's growth in Q2 FY26 was 12% against the IPM's 8%, demonstrating strong market penetration and brand acceptance. Both chronic and acute segments contributed positively, with the chronic portfolio showing exceptional growth exceeding 20%. Key brands like Cilacar, Cilacar-T, Metrogyl, Nicardia, and Sporlac have gained ranks, with the Razel franchise notably crossing INR 100 crore in sales, growing by 12% year-on-year.

Strategic Segment Performance

The international business also contributed to the overall growth, with revenue increasing by 7% to INR 441 crore in Q2 FY26. This growth was primarily propelled by the Contract Development and Manufacturing Organization (CDMO) division, which recorded a strong 20% year-on-year growth, reaching INR 113 crore. The CDMO segment benefits from a robust pipeline of products for global partners and a strong order book, indicating sustained momentum for the second half of FY26. While international formulations, excluding the strong performance in Russia, remained somewhat subdued in other markets like the US and South Africa, management anticipates a recovery in these regions in H2 FY26. The API business also recovered well, clocking INR 22 crore in revenue.

The company's acquired portfolios, including the Ophthalmology portfolio from Novartis, are gaining significant traction. Post-smooth integration in January 2024, the ophthalmology portfolio sales grew 10% to INR 115 crore in H1 FY26. A dedicated field force of over 100 personnel has been deployed to promote these brands, and the perpetual license for this portfolio, set to trigger in December 2026, is expected to bring a significant improvement in gross margin profile from FY27. Other acquired portfolios like Sporlac and Azmarda also showed strong growth, with Sporlac nearly doubling in three years and Azmarda clocking INR 79 crore in sales.

Operational Efficiency and Future Outlook

JB Pharma's focus on operational efficiency is evident in its improved profitability margins. Gross profit margin expanded by 200 basis points to 68.2% in Q2 FY26, compared to 66.2% in Q2 FY25. This improvement is attributed to cost optimization efforts, a favorable product mix, and strategic price growth. Operating EBITDA margin also saw a 100 basis point increase to 29.4%, underscoring the company's emphasis on enhancing profitability. Overheads, including employee costs, were kept under control, further aiding operating margins, despite escalated freight costs for the international business.

Financially, the company maintains a strong position with operating cash flows of INR 363 crore in H1 FY26. Gross debt was significantly reduced to INR 7 crore as of September 30, 2025, from INR 14 crore on March 31, 2025, highlighting disciplined financial management. The net cash position, including cash and cash equivalents and short-term investments, stood at INR 939 crore. The net capex addition for H1 FY26 was INR 46 crore, with a new IV line expected to be commissioned within the next two months, absorbing a major part of the greenfield capex.

Management remains confident in sustaining the positive momentum, guiding for 12-14% growth in domestic business and CDMO for FY26. Gross margins are expected to be in the 67-69% range, with EBITDA margins between 27-29%. The company's commitment to building a progressive, agile, and future-ready organization, coupled with its robust pipeline and strategic focus on high-growth segments, positions it well for continued success and value creation for its stakeholders. JB Pharma's proactive approach to sustainability, evidenced by its Fourth Sustainability Report and strong DJSI score, further reinforces its long-term vision and responsible business practices.