1. At a Glance – Blink and You’ll Miss the Drama
Jubilant Pharmova is trading at ₹938, down ~17% in the last 3 months, with a ₹14,937 Cr market cap and a Stock P/E of 32.4 — which already smells rich for a company whose ROE is stuck at ~9.5% like a Delhi car in August traffic.
Q3 FY26 numbers just dropped and they’re… spicy.
Revenue came in at ₹2,123 Cr (+17% YoY), but reported PAT fell ~31% YoY to ₹56 Cr, thanks to FDA hangovers, CDMO shutdown costs, depreciation bombs, and interest doing bhangra.
Debt stands at ₹2,883 Cr, but management swears reduction is coming — mainly funded by selling their Sofie Biosciences stake for ~$139 Mn.
Radiopharma alone contributes ~44% of revenue, and if Radiopharma sneezes, Jubilant catches pneumonia.
This is not a “steady compounder” story.
This is a “one FDA letter away from chaos, one approval away from glory” story.
Curious already? Good. Because it only gets messier.
2. Introduction – This Is Not One Business, It’s Six Wearing One Share Price
Jubilant Pharmova is what happens when a conglomerate refuses to pick a lane.
They do:
- Nuclear medicine
- Allergy shots
- Sterile injectables
- US generics
- Drug discovery services
- Experimental oncology molecules
Most pharma companies choose one poison. Jubilant said: “Why not drink all of them?”
The result?
A company with world-class assets, global reach, FDA scars, lumpy earnings, and a valuation that assumes things will eventually go right.
Historically, Jubilant has suffered from:
- Over-expansion
- Regulatory whiplash
- Capital misallocation
- ROE that looks like it skipped leg day
But lately, there’s been an attempt at adult supervision:
- Non-core exits
- Debt reduction
- Capacity consolidation
- Focus on Radiopharma + CDMO
Is it working?
Partially. But the market wants proof, not PowerPoint.
3. Business Model – WTF Do They Even Do?
Let’s break this monster down, one organ at a time.
a) Radiopharmaceuticals (~44% of 9MFY24
Revenue)
This is the crown jewel. The cash cow. The reason Jubilant survives its own decisions.
- #3 radiopharma manufacturer in the US
- #2 radiopharmacy network with 46 locations
- Products like Ruby-Fill, Mertiatide, Sulfur Colloid
- High-margin, high-entry-barrier, regulation-heavy
Radiopharma is beautiful because:
- Short shelf life = local monopoly
- Doctors don’t price shop radioactive injections
- Switching costs are massive
If Jubilant were only Radiopharma, this stock would be priced very differently.
b) Allergy Immunotherapy (~10%)
- #2 player in US allergenic extracts
- Sole venom supplier in the US
This is boring, regulated, sticky, and profitable — exactly what investors like.
Unfortunately, it’s too small to move the stock alone.
c) CDMO – Sterile Injectables (~17%)
The dream business.
Also the most painful one.
- Spokane & Montreal facilities
- US Govt agreement worth $149.6 Mn
- Canadian concessional loan ~$48 Mn
- Montreal facility got OAI from US FDA, shut for remediation, resumed later
Sterile injectables are margin monsters when compliant and cash incinerators when not.
This segment explains 80% of Jubilant’s volatility.
d) Generics (~12%)
US generics. Thin margins. Heavy competition.
- Salisbury US facility shut down due to losses
- Moving to outsourced CMOs
- Cost optimization of ₹150 Cr underway
Generics is now a “don’t embarrass us” business, not a growth engine.
e) CRDMO (API + Discovery) (~17%)
- Strong CNS/CVS API
