JBCHEPHARM
Large CapJB Chemicals & Pharmaceuticals Limited
Industrials
JB Chemicals & Pharmaceuticals Limited is an Indian pharmaceutical company with operations in India and international markets, including branded formulations and CDMO. Torrent Pharma acquired a controlling stake on January 21, 2026, leading to an operational reset in Q4 FY'26.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
medium confidence · 3/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -5% YoY · PAT -31% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹904 Cr | -4.7% | -15.1% |
| EBITDA | ₹201 Cr | -11.1% | -32.1% |
| Operating margin | 22.0% | -200 bps | -600 bps |
| PAT | ₹101 Cr | -30.8% | -49.0% |
| PAT margin | 11.2% | -421 bps | -742 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY'26 revenue de-grew 5% to INR 904 crores due to an operational reset post-acquisition, including discontinuation of low-margin trade generics and alignment of practices. Adjusted EBITDA margin improved to 27%.
Q4 FY'26 saw a temporary performance impact due to post-acquisition operational reset, including discontinuation of low-margin trade generics and distribution network optimization. While gross margins improved, revenue de-growth and sequential slowdown in India business indicate near-term challenges. Management expects normalization from Q1/Q2 FY'27.
India Branded Business
The branded business of JB for the India portfolio grew at 8% for the quarter. Management is confident it remains a double-digit growth business.
Chronic Business (India)
The chronic business grew at 19% versus the industry growth of 14% as per IQVIA MAT March'26 data.
CDMO Wallet Share Expansion
Strategy includes increasing wallet share with existing top customers like Innova, Kenvue, P&G, Reckitt, and expanding geographic footprint for existing products.
CDMO New Customer Acquisition
Medium to long term, the company plans to tap into a bunch of large customers around the world where JB is not currently present.
Strong India Brands
Brands in the India business continue to give confidence due to their wide establishment and recognition, with high familiarity.
Portfolio Complementarity
There is a lot of complementarity in the portfolio where coverage can be enhanced significantly for JB brands and brand equity can be interchanged.
Procurement Synergies
Procurement synergies will start playing out now, with a strong positive impact already seen from April.
Operational Reset Impact
Q4 was a period of operational reset, which temporarily impacted performance in both India and International businesses.
Trade Generics Discontinuation
The discontinuation of the low-margin trade generics business in India was the main reason for sequential slowdown in growth.
Container Shipment Constraints
Negative impacts were linked to container shipment constraints to several markets, primarily the Middle East but also Asia.
CDMO Execution Delays
JB has some delays in execution of new contracts on hand, impacting revenue realization.
Integration Timeline & Growth Recovery
India business double-digit growth may take a couple of quarters; International business single-digit growth more likely from Q2.
Geopolitical Instability
The situation in West Asia regarding container constraints is uncertain ('anybody's guess').
CDMO Development Resources
JB had a very lean development organization, requiring additional resources to execute projects faster.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is relevant for assessing underlying business trends (e.g., India branded business growth, chronic business growth). QoQ is crucial to monitor the 'operational reset' impact and the expected 'gradual recovery' and 'normalization' in subsequent quarters.
CDMO Order Book
Management states there are 'sufficient number of new projects and new contracts on hand' and 'deals that are already signed' for the CDMO business.
CDMO Execution
The 'challenge that the team faces is in the execution and the delivery of the new products' and 'JB has some delays in execution of these contracts which are on hand'.
Gross Margin
Gross margin improved to around 70% from 66% compared to the corresponding quarter of previous year.
Adjusted EBITDA Margin
Adjusted EBITDA margin was about 27% compared to 25% in the corresponding quarter of previous year, an improvement of approximately 2%.
Focus on India Branded Growth
The objective is to change the mix and growth profile, geared more towards India growth as an outperformance driver.
Accelerate Branded Business
Management is confident they can accelerate the branded business growth by a few percentage points from the current trajectory.
Merger Completion
The merger process is in its last phase, with a hearing date in the second week of June, expected to be effective in one to two months.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| India Branded Business Growth | 8% (Q4 FY'26) | Recovery to double-digit/low teens growth over the next couple of quarters. |
| International Business Growth | -9% (Q4 FY'26) | Achievement of single-digit growth from Q1 or Q2 FY'27. |
| Gross Margin | ~70% (Q4 FY'26) | Where it will settle for the full year; Q1 FY'27 results will be indicative. |
| CDMO Execution | Delays in execution of new contracts | Acceleration of delivery of new products to bring revenues quicker. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Gross margin guidance of 67% will be maintained.
"Yes, on gross margin, we continue"
Outcome check: OPM moved from 29.0% to average 25.0% (-4.0 pp).
Domestic business will continue to outpace the Indian Pharma Market (IPM) by 300 to 400 basis points.
"we will continue to grow by 300 to 400 fixed data"
Domestic business is expected to achieve 12% to 14% growth.
"we will be looking at 12% to 14% growth for our domestic business"
Outcome check: Revenue YoY averaged 2.9% across 2 later quarter(s).
Rest of the world market is expected to see high single-digit growth in H2, and South Africa will bounce back.
"we should see high single digit growth in H2 in rest of the world market and South Africa also will bounce back"
Outcome check: Revenue YoY averaged 2.9% across 2 later quarter(s).
Trend score and candlestick chart
56NeutralSMA20 +11.6% / mo · near 52W high
Technical chart
JBCHEPHARMweekly · 6M+22.9%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 67.
- RSI(14) at 67 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 3% off 52W high · 25% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Quality contributes 14/20 to the score.
Main drags
- Fair-value margin of safety is negative at -11.2%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 67% delivered/partly-delivered outcomes on 3 checked claims, with 1 adverse claim outcome. It ranks around the 70th percentile of the scored universe and 68th percentile within Industrials. No major sub-score weakness stands out.
Healthy Trust: 3/4 extracted management claims have outcome checks; 0% were fully delivered and 2 were partially delivered. 1 claim(s) were contradicted or failed.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 68th pctile, median 68 · Large: 47th pctile, median 74
3/4 claims checked. Use as directional, not final.
3/4 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Healthy Trust · medium confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 1.1%.
- ▸FCF yield is positive at 0.3%.
- ▸11 years of positive FCF.
Trust risks
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Intrinsic value
Fundamentals
Valuation
- P/E
- 48.60
- P/B
- 8.39
- EV/EBITDA
- 27.07
- Market Cap
- 34883.00Cr
Profitability
- ROE
- 18.90%
- ROCE
- 25.40%
- ROA
- 14.29%
- Dividend Y
- 1.01%
Growth (CAGR)
- Revenue 5Y
- 15.00%
- EPS 5Y
- 12.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 21.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 184.50×
- Altman Z
- 9.04
- Book Value
- 259.00
Cash Flow
- FCF Yield
- 0.34%
- FCF Positive Y
- 11/5
- OCF
- 704.00 Cr
- EPS TTM
- 44.19
Shareholding
- Promoter Hold
- 48.80%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 84%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.