Thank you, Andrew. Welcome to the earnings call of JB Pharma.

We have with us today Nikhil Chopra, CEO and Whole-time Director, Mr. Kunal Khanna, President Operations, Narayan Saraf, 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. A detailed statement in this regard is available in the results presentation that has been sent to you earlier.

I would like to hand over the floor to Mr. Nikhil Chopra to begin the proceedings of the call and for his opening remarks.

Jason, thank you, and I would like to welcome everyone today on the call to discuss JB Pharma's performance for Q3 FY26. Friends, once again we have performed well with top-line revenues growing at 11% to INR 1065 crores.

Our operating EBITDA, excluding non-cash ESOP, stood at 305 crores, up 13%, whereas net profit came in at 198 crores, growing at 22% over the previous year. Gross margins during the quarter three rose by 200 bps to 69.1% as compared to 67.1% last year.

This is on the back of attractive product mix, price improvement realized, and stable raw material cost. The operating EBITDA margins stood at 28.7%, higher by 60 bps year-on-year, given our consistent thrust on driving profitability.

Let me now draw your attention to the detailed discussion beginning with the domestic business. Our domestic business showed 10% growth year-on-year to 620 crores.

As per IQVIA December MAT data, JB remains the fastest-growing company within the top 25 names in the Indian pharma market. All our major brands have continued to deliver and have posted strong growth.

Six brands now feature in top 300 brands in the Indian pharma market. I would like to underline that we have maintained momentum as one of the fastest-growing pharma companies in the country over the past several years.

The domestic business franchise now has a strong foundation which will help the business continue to grow in the future above than the Indian pharma market growth. Turning to international operations, quarter three FY26 saw 12% growth year-on-year to 445 crores.

Our international operations growth was driven by international formulation businesses, which saw a revenue of 306 crores, up 20% year-on-year, given the strong performance in Russia, South Africa, U.S., and other branded export markets. The CDMO business has sustained its momentum and once again performed well in quarter three FY26, despite a high base in quarter three FY25.

Our focus on cost optimization, favorable product mix, and operational efficiencies led to improved operating margins for the quarter FY26, as well as for the nine-month FY26. JB Pharma continues to pursue growth with conviction, driving revenue expansion with a sharper focus on efficiency and organizational agility.

Our sustained investments in the domestic business and CDMO platform remain central to realizing consistent growth while protecting margins. Supported by strong balance sheet and an execution-driven culture, we are well positioned to adapt to evolving market conditions and advance confidently into company's next stage of strategic development.

I would now like to earn Mr. Narayan, our CFO, to continue with the views on the financial performance.

Over to you, Narayan. Thank you.

Thank you, Nikhil. Good afternoon everyone and welcome to JB Pharma's Q3 FY26 earnings call.

Now to take you through the financial updates for the third quarter, revenues for the quarter were at rupees 1,065 crores, representing an increase of 11% year-on-year. The domestic business to international business mix was 58% to 42%.

In domestic business, the domestic formulation business segment reported revenues of rupees 620 crores, with a 10% year-on-year growth. As per IQVIA MAT December 2025 data within the IPM, the company outperformed with a growth of 12% versus the IPM growth of 9%.

In this segment, the company's franchisee results saw growth of 11% year-on-year, with revenue at rupees 108 crores. In international business, the international business segment grew by 12% year-on-year, with revenues at rupees 445 crores.

The international formulations witnessed a robust growth of 20% year-on-year to rupees 306 crores, owing to the strong performance of the export business of South Africa, Russia, USA, and branded exports markets. The CDMO category remained nearly flat at rupees 117 crores for quarter three FY26.

That being said, sales momentum during the quarter was sustained despite a higher base of the previous year and is expected to continue on in Q4 FY26. The revenues from API category were at rupees 21 crores for quarter three FY26.

Gross profit margins expanded 200 basis points year-on-year at 69.1%, increasing on the back of a better product mix, stable RM prices, and positive price growth. Operating EBITDA, which is excluding the ESOP cost, was at rupees 305 crores, growing 13% year-on-year.

Margins expanded year-on-year at 28.7% versus 28.1% in quarter three FY25. During the quarter, other income increased to rupees 18 crores as against rupees 8 crores in quarter three FY25 due to treasury income.

Depreciation increased to rupees 45 crores versus 42 crores in quarter three FY25. Net profit increased by 22% year-on-year at rupees 198 crores.

We reiterate our guidance for operating margins between 27 to 29% for FY26. That brings me to the end of my opening remarks.

I now request the moderator to open the forum for the Q&A session. Thank you very much.

Hello, am I audible?

Yes.

Thank you for the opportunity, sir. First question is on the domestic side, what kind of price hikes we have taken for this quarter?

Sorry, could you repeat the question, please?

Price hikes in the domestic business for this quarter?

If you really look at our numbers, we try to maximize the price hike. Price hike generally for the quarter is close to 7%.

Okay. With respect to the guidance, you guide 12 to 14% kind of growth for the domestic market.

However, if you see this quarter the growth has been kind of 9 to 10%. Do you still maintain this 12 to 14% or should we revise it down to around 10 to 11%?

Yes, Sumit. If you look at our growth YTD nine months for India business, which is close to around 11-12%, our guidance continues to be growing better than the market, 22-300 bps, which is in line to where we stand today, and that is how we'll end up by the end of the year also.

Okay. Basically you're expecting 622-630 crore revenue for the version to continue?

What we were talking about was our growth with respect to market. If you really look at it from a quarterly perspective, March generally is a soft month for all Indian pharmaceutical companies for domestic market situation, because of the inventory closing from the distributors' end.

That quarterly run rate can be impacted because of natural March phenomena, but overall our growth will be higher than the industry.

Second on the margins, margins have increased. Even though the growth has been kind of normal, slightly slower development.

What is that doing in margins?

Your voice is cracking.

Sumit, we can't hear you well.

Yes, is this fine?

Yeah. Basically on the margin side, apart from the domestic performance, what is likely to improvement in the margin, overall performance in the margins?

Overall, if you look at the product mix, which is a combination of what we have done in India business, with our chronic portfolio contributing on the higher side, and our international business mix of CDMO business and what business we have done in some of the geographies, that has led to better gross margins for the quarter. Right.

We can expect this to continue, and in the international side also US, South Africa and other geographies are doing well. As we see quarter four, the guidance would be that we have a good order book for quarter four, and our gross margin should range between 68 to 69% by the end of the year.

Understood. All the best.

Hi, good afternoon, and congratulations on good set of numbers. I have two questions.

One about the dividend policy. Is there any change in the dividend policy?

There is no announcement of any interim dividend this time?

Yeah. Interim dividend we have not announced yet.

However, once the right time opportunity kind comes, we will inform and update you about the dividends.

This question was in the context of our regular announcement of interim dividend with the second, I mean the December results, which usually for last five years it has been regularly announced. If there is any change.

The control situation, it will happen over time and we'll update you once we take the decision.

All right. Secondly, about this pending merger with Torrent, any guidance on the timeline?

It's a work in progress, and it's progressing at its normal speed, and we'll keep on updating as and when we have got any fresh developments.

Presently what is likely, if you have mentioned it in earlier calls, but just to confirm, what is the guidance on by when this is likely to be completed? Any understanding?

It may happen sometime in quarter four.

All right, fine. Thank you so very much and all the best.

Hello, sir, am I audible?

Yes. Yeah.

Congratulations on a good set of results, sir. My question to you is, expect the merger with JV Chemicals is expected to be completed?

Can you give us a rough timeline? Also can you shed some light on the synergies that can be created with the merger?

Sorry, I could not hear your last line, Ananya. Your voice was cracking.

Hello?

Hello, Ananya, can you repeat?

Yeah,

Sure. Can you give us a rough estimate as to when the merger can be completed, the merger with JV Chemicals?

Can you give us a rough timeline for the same and also shed some light on the possible synergies that can be created via the merger?

Ananya, first of all, this call is more to talk about the performance for the quarter, but as Narayan told to the previous call in the previous question, that this is work in progress, and as and when we get more visibility, we'll be happy to share, but it will happen sometime in quarter four.

Okay.

The merger will, the closure is expected in quarter four and the merger can happen any time 6 to 9 months from there on. That's the way to really look at the situation.

At this stage we can only...

All right. Can you shed some light on the possible synergies that can be created via the merger?

We would not like to comment on any of this merger situation as of now.

All right. Okay.

Thank you.

Sir. Thank you for the opportunity and congratulations on good set of numbers.

My first question is pertaining to your CDMO business. I understand there was a high base in quarter, but for FY27.

How should we look at the revenue run rate for this particular segment? If you could also help us understand the utilization of the CDMO plant at work levels are currently?

CDMO, what we shared earlier that this quarter was a base effect, but our run rate for the quarter for every quarter continues to be around 115 to 120 crores for this year. You should expect us to grow at around 10 to 12% for FY27.

My next question is for Saraf, sir. In this quarter, have we seen any impact coming from the new labor law code or are we still in the process of evaluating the impact?

No, very significant. We have taken the necessary impacts in our P&L and it was not something substantial enough.

Got it. Thank you.

Hi, good afternoon. Just a follow-up on the merger question earlier.

You said the deal will close in Q4 and then another six to nine months for the merger. Is that correct?

Yes. Yes, yeah.

Bino Pathiparampil (Capital Markets, Business Strategy and Asset Management, Elara Capital):

Okay. What is the why such a delay between deal closure and merger?

Six to nine months.

See,

I think that's all we'll be able to share, I think, on this call. as we said that six— that's all that we'll be able to share on this call, because we don't want to give our

quarterly performance.

If you can focus on the performance, that will be more apt. Bino Pathiparampil (Capital Markets, Business Strategy and Asset Management, Elara Capital):

Understood. Thank you.

Hello?

Go ahead, Naman.

Hello? Yes, sir, can you elaborate on the group export formulation business that we saw this quarter?

Sure. Can you explain or elaborate more on the export formulation business growth that we saw for this quarter, and how should one look at?

Naman, for the quarter, as I think earlier guided, quarter three and quarter four, we had a good order book, which was shared in quarter two commentary. That is how the quarter three has performed for the international markets, and that is backed up by good performance in our both subsidiaries, South Africa and Russia.

Also, our export branded business has also done well. That is where we stand.

What we guide for the year is we should grow at high single digit by the end of the year, and that is what we had shared in our quarter two commentary in the investor call.

Thanks. Sir, on the India business front, while for the first nine months, we have grown in double digits, but particularly last three quarters, sequentially, the growth has been, let's say, around nine, nine and a half percent.

Any particular slowdown, if you are seeing in our portfolio, or is just a market slowdown?

No, no real concern with the overall growth for domestic business. Our chronic portfolio has done exceedingly well, and the one, one and a half percent difference which you are seeing, instead of 11 to 12 percent being closer to 10 percent, is largely attributed to some slowdown for our acute business, more specifically the gastro portfolio.

Apart from that, if you really look at the numbers of all our key brands and compare that with IPM, we have done exceedingly well. Just to give some numbers, Cilacar has grown at 25 percent plus, Cilacar T at almost 33 percent, Nicardia has grown at almost 30 percent, Sporlac franchise showing a growth of 13 percent.

All our big franchisees have done well. It's essentially some slowdown of the acute gastro, which is showing the difference.

Thanks. Thank you.

Yes, good afternoon everyone, and thank you for the opportunity. Just a follow-up on our export formulation business.

Can you give more detail on how the international markets are performing, the growth is driven by the volume, or the price hike there also? That's it from my side.

We had good demand in our both subsidiaries in terms of volume, particularly in South Africa and Russia for the quarter. That is what we are looking forward in quarter four also.

Our business, if you look at our quarter two performance for branded generics, we were flat. This quarter, as earlier also shared, we had a good order book, so that we could execute for quarter three.

Equally I am sharing at this moment of time that in quarter four also, for quarter four also we have a good order book, where we should see double-digit growth for the quarter, but for the year we should grow at high single digit.

Understood. Thank you.

No. I'll just take some questions that have come on the wall.

First question is on the ophthalmology business. It seems to be that the business is just 10 percent.

Any guidance on that?

I think we'll be double-digit growth in ophthalm portfolio as well. Our chronic and glaucoma portfolio has done well.

Some bit of slowdown is again attributed to the acute products. Otherwise we are well poised to reach our aspirations of having a consistent 17 to 18 crore per month, run rate for this portfolio in the next three to four months.

The other question is which is there on the FY Q4 performance. Any guidance on how the Q4 FY26 performance will be there?

Quarter four, as what we have earlier shared, is India business should grow two to three percent, better than the market. International business, as we have good order book, we should show the same performance as what we have demonstrated for quarter three, which by the end of the year should grow at high single digit.

We'll be as per what guidance we have been giving in terms of both our businesses, India as well as international market, will plus minus show the same performance as what we have delivered in quarter three. Margins close to around 28 percent.

And

another question is, assuming as we said that the transaction gets closed in Q4, anything on the ESOP charge that we would like to mention?

Assuming if the change of control event happens in quarter four, then we are clearly looking at around 40 crores of ESOP charge, what is balance left over to be charged in the quarter four.

Great. The last question which is there in, significant increase in other income to 18 crores.

Anything that you would like to highlight?

It's basically because of the simple reason that since we have repaid all our debt, we had some opening debt in last year, and now we have repaid all our debts and we have surplus cash, which we are investing as per our treasury policy, and that is resulting into higher treasury income.

Great. That's it from my side.

Over to you.

Thank you all for showing all the interest in JB Pharma's performance for first nine months of the year and the guidance that we want to give for the current year is we'll continue to outperform the market in India business. All our big brands will only get bigger, driven by volume growth, particularly showing good performance in the chronic space.

Equally in the international market, we have bounced back in quarter three and that momentum will continue in quarter four, backed up by our subsidiaries doing better, South Africa, Russia, as well as international branded business will also show double-digit growth for the quarter, and we should end the year for our international business at high single-digit growth, and we'll continue to maintain our EBITDA margins for the year close to 28 to 29 percent, and that is in echo to the guidance that we have given to all of you in our previous investor calls. Thank you all.

Thank you.