While the revenue across all businesses was broadly in line, Allergy Immunotherapy and CMO – Sterile Injectables business outperformed expectations.
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Systematix Report
Jubilant Pharmova Ltd.'s Q2 FY26 Revenue (Rs 19,664 million) and Net earnings (Rs 1,199 million) were in line with our estimates but Ebitda (Rs 3.414 million) beat our and consensus estimates.
While the revenue across all businesses was broadly in line, Allergy Immunotherapy and CMO – Sterile Injectables business outperformed expectations. Sterile CMO grew 30% YoY and 6% QoQ, while Allergy business revenues were up 14% YoY and 7% QoQ. Ebitda margins stood at 17.4% vs 16.5% in Q2 FY25. Ebitda outperformed expectations primarily due to a) Allergy Immunotherapy's 65% Ebitda growth with margins expanding 1,210 bps to 39%, reflecting strong US demand and pricing power b) 30% revenue growth in CMO Sterile Injectables following Line 3 launch at Spokane, accelerating Ebitda growth.
Radiopharma benefited from Ruby-Fill's 24% install base growth, while Drug Discovery and API businesses showed positive momentum. Growth in Drug Discovery business was soft during the quarter (7% YoY), but H1 FY26 growth remains strong (22%).
Going forward, Montreal ophthalmic line qualification by FY26 end, and continued generic product launches should sustain revenue and margin expansion trajectory, supported by favorable tariff dynamics in Sterile CMO.
We slightly tweak our estimates on Jubilant Pharmova and maintain Hold with a target price of Rs 1,238 based on 25x FY27E earnings per share.
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