At a Glance
Jubilant Pharmova reported Q1 FY26 results with Revenue up 10% to ₹59.5 Cr, EBITDA up 14%, and PAT at ₹5.8 Cr (up from ₹5.3 Cr last quarter). However, the stock still trades at a delirious P/E of 748, making it look more like a biotech startup than a 45-year-old pharma firm. To spice things up, the CFO just resigned, and the company announced a $50M investment into a PET radiopharmacy facility in the US.
Introduction
Jubilant Pharmova is an integrated pharma player dabbling in radiopharma, CRDMO, and proprietary novel drugs. The company is a niche leader in US radiopharmaceuticals but struggles to convert leadership into profits.
The latest quarter shows operational improvements, yet the numbers are still a shadow of peers like Sun Pharma or Dr. Reddy’s. With a P/E north of 700, the market clearly prices it like it’s holding the patent to immortality.
Business Model (WTF Do They Even Do?)
- Radiopharma (~44% revenue): Imaging agents, Ruby-Fill, and nuclear medicine products.
- CRDMO: Contract research and development services for global pharma.
- Proprietary Novel Drugs: Long-term bets with uncertain returns.
Essentially, it’s a mix of stable services (CRDMO), regulated radiopharma (high-margin, complex), and moonshot R&D.
Financials Overview
- Revenue (Q1 FY26): ₹59.5 Cr (+10% YoY)
- EBITDA: ₹10.3 Cr (+14%)
- EBITDA Margin: 17.3% (huge jump from negative in FY24)
- PAT: ₹5.8 Cr
- EPS: ₹0.36
Despite margin recovery, absolute numbers are tiny for a company with a ₹18,000 Cr market cap.
Valuation
- P/E Method: EPS ₹2.2 (TTM) × Industry P/E 25 ⇒ ₹55 (laughably low vs CMP).
- EV/EBITDA: EV ~₹18,000 Cr / EBITDA ₹26 Cr ⇒ 692×; insane.
- DCF: Not meaningful with current earnings.
🎯 Fair Value Range: ₹400 – ₹500
Current price ₹1,151 = priced for a miracle.
What’s Cooking – News, Triggers, Drama
- CFO Arvind Chokhany resigned (effective Sept 30, 2025).
- $50M US investment in PET radiopharmacy to expand footprint.
- EBITDA margins turning positive – early signs of a turnaround?
- Stock remains high-flying due to radiopharma growth expectations.
Balance Sheet – Auditor Comedy
| Particulars | Mar 2025 (₹ Cr) |
|---|---|
| Assets | 2,910 |
| Liabilities | 608 |
| Net Worth | 2,302 |
| Borrowings | 343 |
Commentary: Debt is manageable, but returns on these assets? Flatlining at 1%.
Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Invest (₹ Cr) | Finance (₹ Cr) |
|---|---|---|---|
| 2023 | 143 | -40 | -78 |
| 2024 | 136 | -2 | -157 |
| 2025 | 136 | -2 | -157 |
Commentary: Operational cash is stable but low. Heavy capex ahead for the US expansion.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 0.95% |
| ROCE | 2.01% |
| P/E | 748 |
| PAT Margin | 9.7% (Q1) |
| D/E | 0.15 |
Commentary: ROE is basically a rounding error. Valuation defies logic.
P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| 2023 | 785 | 18 | 32 |
| 2024 | 231 | 41 | 19 |
| 2025 | 482 | 26 | 35 |
Commentary: Revenue collapse in FY24-25 but Q1 FY26 hints at recovery.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Sun Pharma | 52,578 | 11,454 | 36 |
| Dr Reddy’s Labs | 33,520 | 5,657 | 19 |
| Zydus Lifesciences | 23,241 | 4,644 | 21 |
| Jubilant Pharmova | 482 | 35 | 748 |
Commentary: Trades at a P/E 20× higher than peers despite lower revenues.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 47.7% (down from 50.7%).
- FIIs: 17.4% (stable).
- DIIs: 9.5% (increasing).
- Public: 24.8%.
Promoter selling is not a good look, but DIIs stepping in suggests some confidence.
EduInvesting Verdict™
Jubilant Pharmova’s Q1 FY26 shows early signs of margin recovery, backed by a strong US radiopharma business and new investments. However, valuation is absurd, profitability is weak, and promoter selling raises eyebrows.
SWOT Snapshot:
- Strengths: Niche radiopharma leadership, US expansion, global presence.
- Weaknesses: Low ROE, inconsistent earnings, stretched valuation.
- Opportunities: PET radiopharmacy boom, CRDMO demand, R&D pipeline.
- Threats: Regulatory hurdles, competition, execution risks.
For investors: This is a high-risk, high-story stock. Until earnings scale, the P/E remains a comedy act.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Jubilant Pharmova, Q1 FY26 Results, Radiopharma Expansion, High P/E Pharma Stocks
