Jubilant Pharmova Plunges as Q1 Profit Slashes 45%; Operating Costs, Product Availability Dent Earnings

Jubilant Pharmova Plunges as Q1 Profit Slashes 45%; Operating Costs, Product Availability Dent Earnings​

Jubilant Pharmova shares saw a notable decline, dropping nearly 6% to the day's low of Rs 908 on the BSE. The drop followed the company's announcement of significantly lower profitability in its first quarter ended June. Consolidated profit for the period came down by 45% year-on-year (YoY), reaching Rs 56 crore.

The decrease in reported profit was attributed to challenges in operating profitability, alongside an increase in depreciation costs related to Line 3 operations in Spokane. Despite the decline in consolidated profits, the company managed revenue growth across various segments. Total income for Q1’FY27 jumped by 18%, reaching Rs 2,249 crore compared to Rs 1,913 crore a year prior.

Revenue Growth Offset Profit Decline at Jubilant Pharmova​

Overall, Jubilant Pharmova reported strong revenue performance in the first quarter of FY27. The company's revenue grew by 17% on a yearly basis, reaching Rs 2,229 crore against Rs 1,901 crore from the corresponding period last year. This growth was driven by robust performance across all business segments.

A particular highlight mentioned was the exceptional strength shown by CDMO Sterile Injectables. The company's Chairman and Co-Chairman noted that this revenue growth reflected a solid overall trend, supported particularly by technology transfer revenues emanating from Line 3. For the quarter, EBITDA stood at Rs 268 crore.

Segmental Performance Highlights of Q1’FY27​

A detailed look into the various business units revealed mixed performance across the portfolio. The Radiopharmaceuticals segment saw revenue climb by 19% to Rs 322 crore, with corresponding EBITDA standing at Rs 110 crore. However, the EBITDA margins in this area declined YoY due to the temporary unavailability of certain SPECT products.

The Radiopharmacy unit also performed well, reporting a 17% YoY revenue increase to Rs 700 crore, which was attributed to higher volumes achieved for specific PET products. This unit's EBITDA grew by 19%, reaching Rs 12 crore.

CDMO and Drug Discovery Show Varied Trends​

The CDMO Sterile Injectables business segment reported a strong 34% revenue surge, totaling Rs 496 crore, which was linked to incremental revenue from Line 3. However, the EBITDA margins in this area were lower YoY due to negligible third-party revenues combined with increased operating expenses, including remedial costs at the Montreal facility.

The CRDMO business saw its Drug Discovery segment revenue grow by 8% to Rs 174 crore, while EBITDA expanded significantly by 43%, reaching Rs 45 crore and achieving an improved margin of 26%. The API business within CRDMO reported revenue of Rs 135 crore and generated EBITDA of Rs 19 crore.

Generics and Proprietary Novel Drugs Look Ahead​

The Generics business segment achieved a 4% revenue increase in Q1’FY27, reaching Rs 173 crore, buoyed by the launch of two new products. However, margins in this segment declined YoY due to changes in the product mix. The company indicated plans to introduce multiple products in FY27 to boost revenue and profitability.

Regarding Proprietary Novel Drugs, the company confirmed that global clinical trials are progressing well. Phase I/II trial for JBI-802, targeting Essential Thrombocythemia (ET) and other Myeloproliferative Neoplasms (MPN), is actively enrolling patients. Meanwhile, Phase I trial for JBI-778, focusing on non-small cell lung cancer (NSCLC), Adenoid Cystic Carcinoma, and high-grade Glioma, is also progressing as expected.

Long-Term Vision Targets Set by Jubilant Pharmova​

Looking toward the future, the company shared its Vision 2030 roadmap. The long-term projection anticipates that revenue will double from FY24 to FY30. Furthermore, the EBITDA margin for the organization is targeted to fall between 23% and 25% by FY30.