Q2 2026 J B Chemicals and Pharmaceuticals Ltd Earnings Call
Ladies and gentlemen, you are connected for the JB Farmers conference call. Please stay connected. The conference will begin shortly.
Participants, you are connected for the JB Farmers conference call. Please stay connected. This conference will begin shortly. Thank you.
Ladies and gentlemen.
26 earnings conference call as on November 12, 2025.
As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing "*" and then "0" on your touchtone phone.
I now hand the conference over to Mr. Jason, Duza Executive Vice President at JB Farmer.
Thank you, and over to you, sir.
Thank you, sir.
Welcome to the Q2 2026 earnings call of J B Chemicals and Pharmaceuticals. We have with us today Lil Chopra, CEO and Whole Time Director.
President operations, and n.
The CFO at JB Chemicals and Pharmaceuticals Limited.
Before we begin, I would like to state that some of the statements in today's discussion may be forward-looking in nature and may involve certain risks and uncertainties. Detailed statements in this regard are available in the Q2 FY26 results presentation that has been sent to you earlier. I would like to hand over the floor to Mr. Nickel Chopra to begin the proceedings of the call and for his opening remarks.
Thank you. You and welcome to all of you on today's call.
Another quarter of good performance, with the business going ahead of the Indian farmer market.
Quarter 2 saw overall revenues at ?1,085 crores, which is 8% higher than the previous year.
Excluding non-cash ESOP, it came in at ?319 crores, up 12%.
Net profit was reported at ?208 crores, reflecting a year-on-year increase of 19%.
Our Q2 growth margins increased from 56% to 68.2%, compared to 66.2%.
Cost optimization efforts, favorable product mix, and pricing have positively impacted gross margins and contributed to growth.
Operating margin came in at 29.4%, up 100 basis points year on year, underscoring our emphasis on improvement in profitability.
Moving around. Let me draw the discussion towards the business.
Our domestic business Group business should have 9% Improvement year on year?
to INR, 644
As per IQ of September, it is the fastest growing company among the top 25 companies in IPM.
For the past several years, we have consistently remained one of the fastest-growing companies in the country.
This is indeed a major achievement for our for our organization as a whole.
Further, all our major brands gained ranks alongside 3 of our brands. Now, in the top 100 in terms of IPM, we have 6 brands in the top 300 in IPM. The business continues to be driven by strong brands with key franchises, outperforming the market.
As per IQM made September 25, the result indicates that it is a raw setting franchise. He has achieved the first ?100 crores in revenue.
This is another achievement, considering that in just two years, the franchise has gone from sales of ?66 crore, in red, September 22.
To 9 hours of 104 kilos, as per M, September 25.
We now have six brands, franchises, each demonstrating healthy and sustainable growth.
Moving on, let me address our international operations.
425.26 saw the business delivering a 7% improvement year on year to an output of 441 crores. This was driven by strong trends in our CDMO segment.
CT business reported 20% what year on year growth to grow for the quarter.
We have a robust pipeline of products, 94, our Global Partners, and our order book is even strong for H2, fee, 26.
International corporation reported a revenue of ?306 crore, up 2%.
Russia's market recorded strong growth for the quarter, while our other market state remained subdued. We expect the group to return in H25 and 26, more on that. We discussed this during our Q&A.
Press JB, friends. JB remains steadfast in advancing revenue growth while deepening its focus on cost discipline and organizational agility.
Our continued emphasis is on the domestic and CD segments, which will be instrumental in sustaining both top 10 expansion and margin strength.
And with a culture rooted in execution excellence, we are poised to navigate the future with confidence and steer the company into its next phase of strategic growth.
I would like now to request I will now like to request Mission our CFO to continue with his views on the financial performance over to you. Thank you.
Earnings call.
Now, to take you through the financial update for the second quarter, revenues for the quarter were at ?1,085 crores, representing an increase of 8% year on year.
The domestic business to international business makes up 61% to 39% for H1 fee, 26 versus 25.
The domestic business formulation business segments reported revenues of ?644 crore, with a growth of 9% year on year. As per IKEA, Max September 25th data within the IP, the company maintained its outperformance with a growth of 12%.
Uh, versus the item growth of 8%.
In international business, the segment reported a growth of 7% year on year, attributing 441 crores.
International formulations grew moderately by 2% year on year to rupees 306 crores, and the CVO category grew strongly, uh recording an increase of 20% year, on year at rupees 113 crores, due to good sales momentum.
Hearing you from the EPA category where a 22 close as against 19 crores in the previous year.
Operating with the which is excluding non-cash ESOP by 12%. A group by 12% to INR 319 crores for Q2 fee 26 operating with the margins increased by 100 basis points to 29.4 percentage for Q2 fee 26.
For H1, the fee was 26. Operating AA, excluding 1 of the impacting Q1 of rupees 15 crore due to the merging scheme, grew by 13% to rupees 649 crores. The operating margin was 29.28%, an increase of 110 basis points as compared to H1 FY25.
Gross profit margin grew by 2, to 68.2%, compared to 66.2% in Q2. Cost optimization efforts, favorable foreign exchange, and price growth contributed to the margin improvement by 200 basis points.
Overall, health costs were contained, which also aged operating margins.
Finally, net profit increased by 19% to ?208 crores for Q2 FY26, and increased by 17% to ?410 crores for H1 FY26, excluding the one-time impact due to module sales. Net profit for H1 is...
Group by 20% to ?421 crores and an improvement of 180 basis points.
The operating cash flow in H1 FY26 was at ?363 crores, with cash tax increasing to ?116 crores.
The company's gross debt as of September 30, 2025, was ?7 crores, compared to ?14 crores as of March 31, 2025. Net cash and cash equivalents, including investments in mutual funds, were at ?9.39 crores as of September 30, 2025. The net capex addition for H1 FY26 was ?46,000, compared to ?49,000 in H1 FY25.
We remain confident in a positive outlook through opportunities for the company and providing value to our stakeholders. That brings me to my end.
Uh, my opening remarks. I now request a moderator to open the forum for the Q&A session. Thank you very much.
Thank you very much.
We will now begin with the question-and-answer session.
Anyone who wishes to ask a question, may press star and then 1 on your touchtone phone.
If you wish to remove yourself from the question queue.
You may press star and 2.
Participants are requested to use handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Again, to register for a question, please press star and then 1.
Our first question comes from the line of toss of shake from BNP. Please go ahead.
Testing better.
Uh, with respect to GST, uh, the business was not impacted at all, uh, whatever numbers you see. Um, uh, without any, uh, uh, any significant impact on channel for the GST, as far as GST implications, uh, go overall, our growth has again outpaced the market. If you really look at Q2 numbers, the volume growth, for the market was in the range of 0.5 to 0.7%. Whereas, our volume growth was close to 4%. And we have always kind of, uh, you know, maintained that, uh, the reason why we will be able to grow about the market is because we'll grow at least 3% points, uh, about the market with respect to volume growth, and that Trend continues to, um, maintain, uh, acute season was slightly muted, uh, which has, uh, impacted our overall domestic growth for Q2 mainly impacting products, like Metro, Jill, uh, and rank back. But beyond that, our chronic growth has been significant.
Uh in fact, our chronic portfolio has grown at over 20%. Some of our key Brands uh like Sokka Sakari, sicart plane have grown at almost 14%, sakati continues to grow at 26%, um, as 40, like, franchise has grown at 15% as Mada is growing at 23%. So, all our big franchises on The Chronic segments are actually growing at 20% plus
Uh, that's helpful. Uh, second question is the export formulation, I think this is second consecutive quarter. We have seen a muted growth, uh, which is the market which are leading this drag to this kind of growth can help us understand.
So if you look overall at our performance in the interest of the market,
Uh, 2 of the, let me first talk about which markets.
Uh, what are the good CDM or group?
At, in the case of 20% for the quarter,
And equally, Russia is in the good group, or 20% close to the high teams.
for the quarter management.
Rest of the world and South Africa.
They show the market growth.
Uh, but, uh, what we would like to state here,
That we have a good order book.
For the world, we should see high single-digit growth in Q2 in most of the rest of the world market and South Africa. Also, it will bounce back supported by.
Google will continue to happen in the CDM industry.
Uh, that's helpful. I'll get back to you.
Thank you.
Our next question comes from the line of Aloe Dalal from Jeffrey India, Private Limited. Please go ahead.
Yes, I'd love to, sir. Uh, just two questions. Uh, first is, um, for the quarter. We've seen India growth of 9%. Uh, this is slightly slower than previous quarters. Is it largely because of seasonality?
Uh, yes, as we maintained earlier, largely because of acute seasons, slightly muted last year. Nitrogen. You know, the overall acute season was quite positive for us, and Met as a franchise had also grown. So, it's an impact of slightly higher base for some of these key legacy products. It's just a seasonal variation. If you compare overall volume growth, and if you see the chronic trends, we continue to outpace the market.
To it. We continue to go by 300 to 400 weeks better.
Sure. And, uh, can you split the growth between volume, price, and new introductions?
Sure. Uh if you really look at it uh from a QP perspective uh you know as reflected externally and also in line with our internal teams overall volume growth is um okay to 4% and price is 6% and overall H1 volume is 5% and the price is 7%, um some part of volume. Uh,
Includes our knee, but that's not significant.
Got it. And, uh, last question is on, uh, Field Force. What is the current Field Force state as of September?
So currently the MRs are close to 2,400 active Ms operating on the ground. There have been no suggested additions over the last 4 to 6 months.
And our product.
All right, okay.
300 400, Mr.
No, no. Uh, I think that is including the, uh, managers.
Okay, this is, uh, on the ground, uh, feet on the ground.
All right. Okay. Uh, thank you for taking my questions.
Thank you.
Our next question comes from the line of Rashmi Shetty from Dollar Capital. Please go ahead.
Yeah. Thanks for the opportunity. Uh, again, uh, follow up, uh, from the, uh, for the export Market. Uh, you mentioned that, you know, uh, uh, South Africa. And, uh, yes, yes, me some sort of struggle over there. While Russia, uh, which was, uh, which had seemed slow down in for quarter. Uh, has seen a good season this quarter, and that's why, uh, it has picked up, but what exactly in us and South Africa? Uh, you know, the struggle is, is it related to any sort of pricing pressure or, uh, you know, uh, uh, delayed product launches or anything. If you can give a bit in detail, do I understand that in the second half? Uh, we will be recording but what is the temporary issue over here?
South Africa.
We have been ordering; we have been diminishing our...
Overall, uh, participation in the public market generally.
So that is the reason, and it takes time in South Africa as a market where we've been highly relying on.
Public. But still it, which was this public tendering participation in the contribution to business.
A couple of years ago, it was $605 to 35%, and it has rather gone up.
But we are looking at how to propel growth in the private market, so that will come, and we are confident in us.
No price, no pricing pressure. We don't we don't take any price reduction in us. Us has been a quarter where where our last year this was high because of some Supply. I would have been on the higher side but it has been a. It has been a trend. We do around 12 million dollar business, 10 to 12 million dollar business, every quarter.
So, I think, uh, that goals will bounce back in Q3 and Q4 for us. So, not a worry.
Okay. And um in domestic business. Uh, you know what kind of price hikes uh we have taken. I mean the Blended child side for uh this year.
We have already taken it for, uh, we'll be taking it now.
So, it happened from 12:00 to 12:00 based on, you know, the, uh, uh, when the price sites are due for a particular set of brands. If you really look at our H1 trending, the price growth is 7% for the domestic business for Q2 specifically; it was 6%.
And, uh, so we continue to, uh, maintain our guidance of 12% to 14% for the Mystic Market, expecting that H2 will pick up due to the chronic segment.
Absolutely. As we have always maintained, we will continue to outpace the market. Even if you really look at the volume growth figures compared to the IPM, we continue to be 3 percentage points higher than the market volume growth, and we will continue to maintain that. So, we will be looking at 12 to 14% growth for domestic.
Okay, and uh last call you mentioned that gross margin guidance would be in the range of 67%. Do you still hold that, because we are running at 68% now? And similarly, if you can guide on the EBITDA margin, whether you're retaining your guidance of around 27% to 29%?
Yes, uh, on gross margin, and we continue to maintain that equipment. The range of, uh, when we, uh, in that range of 67% to 69% and withdraw also very clearly. We will be the lead of, uh, the earlier guidance which we had given. And we continue to see, uh, that we are tuned to achieve those strategies.
Okay.
expect from
There on the oral side. And Iran can take the of question later on the upside down. The Perpetual license, gets triggered in December 2026. So, from calendar year 27, uh, we will see a significant Improvement on the overall gross margin profile. We want, we don't want to significantly Peg, any number or give any guidance. But just to give you a sense that even our opal portfolio, the overall margin profile will be um uh probably higher than our uh Standalone domestic business, current margin profile as well. So that gives you an indication of what the margin boost will look like
Okay. And, uh, and on on, on the east of charge, we see that, uh, the balance charge, which is left is approximately 47 currents and, uh, uh, the year till, which it will be charges fee, uh, 27. However, uh, very clearly, we see, it includes getting charged in quarter 3.
As per quarter 2.
Okay, 47 growth for this year. You are saying, oh, 47 is the total remaining charge. 47 is the total remaining charge. Okay. I mean, as far as 27, how much will you charge it?
In Q2 2026, we see clearly around 20 colors and balance. 27 crores will be referred to.
20 7.
Okay, and 1 last question on the inventory days in the presentation. You mentioned that, um, the inventory levels have been increased so, uh, you know, will it be, uh, will it get normalized at the end of March quarter, or it will, uh, remain elevated only to build your, uh, opal inventory. And also, you know, just to mitigate the risk of high API cost.
We will continue with, uh, the same levels of inventory, given our opal portfolio. You know, currently it is imported. There are certain, uh, times in the year when you see a slightly, um, increased level of finished goods inventory. But no real major concern of inventory levels going for the high from the current levels.
It will be range-bound from what you have seen in Q1 and Q2.
Okay, so it would uh remain at a similar level of uh H1 fee: 26. Yeah. Yeah.
Oh, thank you. That's it from my side.
Before we take the next question, a reminder to all the participants.
You may press star and then 1 to ask a question.
Our next question comes from the line of Gore of Bama from GM Financial. Please go ahead.
Hi, good afternoon.
Uh, to begin with, sir, congratulations on a good set of numbers and thank you for offering me the opportunity to ask a question. I just wanted to understand the single-digit, high single-digit growth expected in the second half. Is it for the overall international business, or just for the international formulation?
Business. Right. Sir.
International formulation business.
Hello, thanks.
Participants, you may press star and then 1 to ask a question.
Our next question comes from the line of Abdul Kader and Wallah from ICICI Securities. Please go ahead.
Uh, hi sir. Thank you for the opportunity. So, the first question is regarding the top charge. Uh, so, just to clarify, what is the charge for spinning currently? There have been reports from the buyout already.
And I would like to know what price this resource is in issue.
And you want to take it?
So, uh, so basically the charge which we see is in, uh, quarter 2 is around 10 kilos. And, as I mentioned earlier, we continue to see that charge of 10K is very important 3. And uh, the uh these uh the the soft which have been issued has been issued as per the lead feature governed and, uh, at the at the HP share, not as for, as, as, for the agreement, which has been signed by each of the employees. So I think it's a different page for different employees.
Is different for different employees.
I hope I was able to answer your question. Uh, yeah, thanks for that. And, uh, the second one is on the India business. So on the acute side, uh, you know, I heard the comment about the season not being that favorable. Uh, but, uh, sir, I mean, uh, could you help us understand? You know, why there would be a bit in this portfolio in Q2?
I definitely.
Uh, so was there a dip in this portfolio? Because when you talk about a chronic growing at 20%, your overall growth totals at 9%.
So yeah. So what what we maintain was that uh the key brands in chronic grow at 20% plus right? And mainly because of the acute, uh, season being slightly muted, our key, uh uh, uh, Legacy Brands brand type and Metro Jail, uh, have shown slightly muted growth rates and that is reflected, in the overall number of 9%. Having said that, if you really look at the overall, volume growth numbers for the IPM and for us, IPM, volume growth for Q2 is just around 0.3%, which is, again, a reflection of the muted season, whereas our volume growth. Um, internally is 4% and externally also,
Got it. Thanks for that. And just one final point as I made. Uh, so on the CDMO business, we are still holding on to a previous guidance of 12% to 14% growth this year.
Yes, we should be able to maintain that growth momentum. If you look at the quarter group at nickel mentioned earlier, we grew at 20%, our H1 growth. Also, currently is looking at 14%, so we continue to uh, you know, uh, see the momentum, uh, being driven forward. Also, uh, and uh, we should end the year with the close to 12 to 14% growth for CDM.
Sure sir. Thank you.
We have just two. Uh, thanks. Thanks. We have two questions, which have come in on the wall. One is on the octile segment.
How do we see the performance of the octile segment in the first half of this year?
On the octile portfolio the uh overall uh momentum which we were able to drive because of this prescriber expansion. Uh we continue to see good results. Uh, coming as a result of that. If you look at the overall math numbers, for the opal portfolio, in our covered markets, we have grown at
Almost 16% whereas the market has grown at close to 8%. Uh, we have already, uh, already uh, hit a monthly 100 of close to, uh, 17 to 18 K and we will continue to drive that going forward as well.
A couple of new launches. Also, we have done organically in the area of price.
in our,
Also, helping us to improve the risk.
Right. Uh, the second question that we have is: what is going to be CapEx for the entire year?
Okay, thanks for the entire year. As mentioned earlier, also will be close to 100 crores. Uh, we have always maintained that I'm maintaining capex. Within the region is in the range of 60 to 65 crores. There is a green field capex. And uh this year uh Greenfield capex, was largely attributed to the new high line, which is also going to get commissioned within the next 2 months. So major part of our Green Field. Capex also has been absorbed this year and the last question which has come in. You've seen some growth in the API business? Uh, any uh, use on that.
So, uh, we want to maintain a quarterly run rate of ?25 crores on the API site. Uh, H1 has been good so far. But as we have always maintained, it's not a function of any new launches. As far as our API business goes, we want to maximize the market data, current portfolio only, and rather actually focus on AP API units serving the capital requirements. That will continue to be the focus going ahead as well.
Yes, we can go back to the cube, thank you.
Our next question comes from the line of Nilam. Punjabi from Perpetuity, please go ahead.
Yeah, thanks for the opportunity. Um,
first question is on the Mr.
7 bags. Uh, so what's the target for this productivity level of the next couple of years and um at what level would be then, uh, evaluating add or to our Field Force.
Just to correct on the productivity trending, this is 7.5, not 6.7.
All right, my bad. So yeah. And that is what we are cutting also. So we have taken internal uh internal aspiration that we would like to at least.
Uh, touch 8 lakh is productivity.
uh, which should be
it should be a good productivity for the portfolio that portfolio mix that we have got
and by that time it is we will think in terms of if you want to add the 3 ports on the ground, that that was that, that way that
Got it, okay.
And my second question is on the international formulations business, could you provide a breakout for the first half, uh uh, in Brazil, South Africa and us what the revenues play between sure. We, we don't, uh, provide the break up of geographies, uh, we but just to give you a broad sense.
and,
Thank you.
Thank you.
Ladies and gentlemen, that was the last question.
I now hand the conference over to Mr. Nickel Chopra for closing comments.
Oh, thank you. All
For the Q2 2026 earnings call, we continue to outperform the market. Particularly, what is happening in India?
It's better than the market. Lot of markets are on in the world of cdmo, which will help us.
Uh, to drive, uh, meetings growth for cdmo business and as good, right now, India CDM contribution is close to 70%, which will only go up to 75% 75 to 20% in the coming time and that will help us to drive better margins and continue to guide the street in terms of any revision that we want to be in terms of our cost budget as.
Thank you all once again.
Uh, thank you.
Thank you.
On behalf of JB Farmer, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.