Financial Performance Summary

Q4 FY2026 Performance

  • Revenue: ₹2,290 Crores, representing a 19% year-on-year (YoY) growth.
  • EBITDA: ₹363 Crores, a 2% YoY increase.
  • EBITDA Margin: 15.7%, a decrease of 272 basis points YoY.
  • Normalized PAT: ₹129 Crores, which decreased YoY due to increased depreciation and interest costs.

The growth was driven by the radiopharma, allergy immunotherapy, CDMO sterile injectable, and generics businesses. The margin contraction was attributed to a shortage in the supply of SPECT products in Radiopharmaceuticals and under-absorption of costs at the CMO Montreal facility.

Full Year FY2026 Performance

  • Revenue: ₹8,280 Crores, a 14% YoY growth.
  • EBITDA: ₹1,326 Crores, an 8% YoY growth.
  • EBITDA Margin: 15.9%, a decrease of 99 basis points YoY.
  • Normalized PAT: ₹442 Crores, a 7% YoY growth.

Growth was seen across all business units, particularly CDMO Sterile Injectables. The margin decline was primarily due to lower production at the CMO Montreal facility, especially in the second half of the year.

Business Segment Commentary and Guidance

CDMO Sterile Injectables (Spokane Facility)

  • Line 3 Update: The line has a pipeline of 10+ products undergoing tech transfer, approximately 80% of which are complex biologics. Commercial production is expected to commence in late FY2027, subject to FDA approval.
  • Oncology Product: The business has onboarded "one of the world's largest oncology products" as a commercial product for Line 3.
  • Revenue Guidance: Line 3 is expected to generate $60-80 million in tech transfer revenue in FY2027. Peak revenue for Line 3 is projected at $80-90 million and is expected to be reached 1.5-2 years earlier than originally projected.
  • Margin: Margins for the overall Spokane business (Lines 1 & 2) are expected to be similar to FY2026 in FY2027 due to the full cost realization for Line 3, with improvement expected thereafter as Line 3 reaches full utilization.

Radiopharmaceuticals

  • H1 FY2027 Impact: A revenue impact of approximately $14 million is expected in H1 FY2027 due to a shortage of SPECT cold kits. This is a high-margin product, creating margin pressure. Supply is expected to normalize by mid-to-end Q2 FY2027, leading to a recovery in H2.
  • FY2027 Guidance: The business expects low double-digit revenue growth with margins in the 38-40% range.
  • Ruby-Fill®: This franchise continues to grow rapidly (>30%) due to market expansion and market share gains. It operates on a "razor blade" model, creating an annuity stream.
  • MIBG Pipeline: The New Drug Application (NDA) for MIBG is on track for filing in H2 FY2027. It will receive an accelerated six-month review due to its orphan drug designation. The company plans to commercialize this product itself.
  • PET Pharmacies: The first three PET pharmacies are expected to be commercialized in FY2027, with the ramp to full potential taking approximately 3-4 years.

CMO Montreal Facility

  • FY2026 Performance: The facility incurred a loss of approximately ₹200 Crores (including exceptional items) in FY2026.
  • FY2027 Outlook: Losses are expected to be similar to FY2026.
  • Future Outlook: Meaningful reduction in losses is expected in FY2028 due to cost-cutting measures. Revenue from the new Line 5 is expected to begin contributing in FY2029.

API Business (CRDMO)

  • The business is focused on onboarding innovator clients for custom manufacturing to improve utilization and profitability.
  • EBITDA margin was maintained at 15% in FY2026, with an expectation for it to increase driven by custom manufacturing revenue starting in FY2027.

Generics Business

  • FY2026 revenue grew by 13%, and EBITDA margin grew by 250%, reaching double digits.
  • The business is on track towards its FY2030 vision, with margins expected to be close to 15%.

Allergy Immunotherapy Business

  • FY2026 revenue grew by 12%.
  • The business is geographically split with 90% of revenue from the US and 8-10% from non-US markets.
  • Growth is driven by gaining market share in the US (a market growing at 3-5%) and expansion into non-US markets, particularly Europe.

Discovery Business (CRO)

  • FY2026 revenue grew 15% to over ₹650 Crores, with EBITDA growing proportionately.
  • The outlook anticipates improved demand from the biotech segment but competitive intensity in the large pharma customer segment.

Capital Allocation and Financial Structure

Capital Expenditure (Capex)

  • FY2026 Capex: ₹1,668 Crores.
  • FY2027 Capex: Expected to be similar to FY2026.
  • Key Projects:
  • Spokane Line 4: $200 million spent, $34 million remaining.
  • Montreal Line 5: $27 million spent, $87 million pending.
  • PET Pharmacies: $22 million spent, $50 million pending.
  • Capital allocation decisions are based on a ROCE (Return on Capital Employed) threshold. No major new investments are foreseen for the next 12-18 months beyond the ongoing projects.

Debt and Cash Flow

  • Net Debt: Stood at ₹1,952 Crores as of the date of the call.
  • Deleveraging Plan: The company is committed to achieving net debt zero by FY2030. Positive free cash flow is expected to commence from FY2028 onwards, driven by the commercialization of Line 3 and tech transfer revenue from Line 4, which will aid in debt reduction.

Tax Rate

  • The current tax rate is approximately 33% due to unshielded expenses.
  • The tax rate is expected to gradually decline as absolute PBT (Profit Before Tax) increases with improved margins from Lines 3 and 4.

Participants

Management Participants: Mr. Priyavrat Bhartia (Managing Director), Mr. Arjun Shanker Bhartia (Joint Managing Director), Mr. Harsher Singh (CEO, Jubilant Radiopharma), Mr. Chris Preti (CEO, CDMO Sterile Injectables), Mr. Arun Kumar Sharma (CFO), Dr. Tushar Gupta (Head Corporate Strategy), Mr. Anuj Mohnot (Head FP&A), Mr. Pankaj Dhawan (VP & Head, Investor Relations).