At a Glance
Jubilant Pharmova delivered a mixed Q1 FY26 – revenue grew 10% YoY to ₹1,901 Cr, EBITDA rose 14%, but PAT remained flat at ₹102 Cr, as costs and one-off items bit into margins. Just as investors digested the numbers, the CFO decided to resign – always a crowd-pleaser for analysts. Meanwhile, the company is betting big with a $50M investment in PET radiopharmacy, signaling it wants to double down on its radiopharma crown.
1. Introduction
In a world where Indian pharma companies either play the generics price war or chase specialty drug glory, Jubilant sits in the middle like that student who’s good at everything but still never tops. Known for its strong radiopharma footprint in the US, the company also runs CRDS (contract research) and novel drugs segments. While peers are scaling aggressively, Jubilant’s growth is steady – not bad, not breathtaking.
2. Business Model (WTF Do They Even Do?)
Jubilant operates via three main engines:
- Radiopharma (~44% revenue): Imaging agents, radiopharmacies (#2 network in the US). Products like Ruby-Fill and Mertiatide shine here.
- Contract Research (CRDS): Services for global pharma majors.
- Proprietary Novel Drugs: Still in investment phase, not a big revenue driver yet.
Its niche in radiopharma makes it unique, but scaling remains a challenge.
3. Financials Overview
- Revenue Q1 FY26: ₹1,901 Cr (+10% YoY)
- EBITDA: ₹290 Cr (+14% YoY)
- PAT: ₹102 Cr (flat)
- EPS: ₹6.46
- FY25 Revenue: ₹7,234 Cr (+8%)
- FY25 PAT: ₹836 Cr (+1,045% due to low base)
The EBITDA margin remains at 15%, but interest costs and forex hit profits.
4. Valuation
Valuing with three standard methods:
- P/E: EPS ₹28.9 × 20 = ₹578
- P/B: BV ₹393 × 2.5 = ₹982
- DCF: Conservative growth → ₹1,000 – ₹1,200
Fair Value Range: ₹950 – ₹1,200
CMP ₹1,158 sits within the range, leaving limited upside.
5. What’s Cooking – News, Triggers, Drama
- CFO Exit: Arvind Chokhany resigns effective Sep 2025 – potential short-term sentiment hit.
- $50M PET Radiopharmacy Investment: Expansion in high-margin radiopharma.
- USFDA Watch: No recent warnings, but always a risk.
- ESOP Grants: 1.2 lakh options granted – management confident or just optimistic?
6. Balance Sheet
(₹ Cr) | FY23 | FY24 | FY25 |
---|---|---|---|
Assets | 10,929 | 11,338 | 12,756 |
Liabilities | 5,546 | 5,904 | 6,501 |
Net Worth | 5,383 | 5,418 | 6,239 |
Borrowings | 3,677 | 3,664 | 2,731 |
Remark: Debt trending down, but liabilities creeping up.
7. Cash Flow – Sab Number Game Hai
(₹ Cr) | FY23 | FY24 | FY25 |
---|---|---|---|
Operating | 661 | 971 | 1,072 |
Investing | -474 | -596 | 488 |
Financing | -157 | -432 | -1,453 |
Commentary: Good cash from operations, but financing outflows hint at debt repayments.
8. Ratios – Sexy or Stressy?
Ratio | FY23 | FY24 | FY25 |
---|---|---|---|
ROE | 3% | 7% | 10% |
ROCE | 3% | 7% | 10% |
P/E | 38 | 40 | 38 |
PAT Margin | 1% | 1% | 9% |
D/E | 0.68 | 0.67 | 0.44 |
Verdict: Ratios improving, but far from industry leaders.
9. P&L Breakdown – Show Me the Money
(₹ Cr) | FY23 | FY24 | FY25 |
---|---|---|---|
Revenue | 6,282 | 6,703 | 7,234 |
EBITDA | 779 | 901 | 1,173 |
PAT | -65 | 73 | 836 |
Commentary: FY25 profits inflated due to low FY23 base.
10. Peer Comparison
Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
---|---|---|---|
Sun Pharma | 52,578 | 11,454 | 36 |
Dr. Reddy’s Labs | 33,520 | 5,657 | 19 |
Torrent Pharma | 11,835 | 2,019 | 63 |
Jubilant Pharmova | 7,234 | 836 | 38 |
Commentary: Mid-tier player with premium-ish valuation.
11. Miscellaneous – Shareholding, Promoters
- Promoters: 47.7% (down from 50.7%)
- FIIs: 17.4%
- DIIs: 9.5%
- Public: 24.8%
Promoter selling = cautious signals.
12. EduInvesting Verdict™
Jubilant Pharmova is a niche radiopharma player with a strong US presence and promising PET radiopharmacy bet. However, growth has been modest, profitability inconsistent, and CFO exit adds uncertainty. The stock trades at ~38x earnings – not cheap.
SWOT Snapshot:
- Strengths: Radiopharma leadership, US market access, reduced debt.
- Weaknesses: Low ROE, promoter stake cut, past losses.
- Opportunities: PET radiopharma expansion, CRDS growth.
- Threats: USFDA risks, pricing pressures, management churn.
Investors might stay for the radiopharma story but should brace for volatility.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Jubilant Pharmova Ltd, Radiopharma, Pharma Stocks, Q1 FY26 Results