Jubilant Pharmova has reported a sharp 45% year-on-year decline in consolidated net profit for the first quarter of FY27, even as revenue surged 17%, with margin pressure weighing on earnings.
Revenue from operations rose to Rs. 2,229 crore in Q1 FY27 from Rs. 1,901 crore a year earlier, supported by broad-based growth across the company's businesses, particularly its CDMO Sterile Injectables operations. Total income stood at Rs. 2,249 crore.
However, operating EBITDA fell 11% YoY to Rs. 268 crore, compared with Rs. 302 crore in Q1 FY26. EBITDA margin contracted sharply to 11.9%, down 385 basis points from 15.8% a year earlier.
The company attributed the margin pressure primarily to the temporary unavailability of high-margin SPECT products, lower third-party revenues and higher operating and remediation expenses at its CMO Montreal facility.
Reported net profit came in at Rs. 56 crore, compared with Rs. 103 crore in Q1 FY26. Higher depreciation expenses, along with weaker operating margins, further weighed on the bottom line.
Jubilant Pharmova's CDMO business delivered a strong quarter, with revenue jumping 34% YoY to Rs. 496 crore, driven by technology-transfer revenues from Line 3 at its Spokane facility.
Revenue from the Spokane facility rose 43% YoY to Rs. 494 crore, while EBITDA climbed 49% to Rs. 117 crore. EBITDA margins expanded by 100 basis points to 24%.
Line 3 currently has more than 10 products undergoing technology transfer, including a major global oncology product. Installation of Line 4 has been completed, with technology-transfer revenues expected to begin in Q4 FY27.
At the CMO Montreal facility, remediation work is underway following receipt of an FDA warning letter in Q1 FY27. The company expects operating losses at the facility to taper off in the second half of FY27 as SPECT product sales resume.
Radiopharmaceuticals revenue increased 19% YoY to Rs. 322 crore, with EBITDA at Rs. 110 crore.
Commercial batch production for SPECT radiopharmaceuticals has begun following successful media-fills at CMO Montreal. Batch releases are slated for Q2 FY27, with full product availability expected in the second half of FY27.
The company's Ruby-Fill installation base also expanded 26% YoY.
Radiopharmacy revenue rose 17% to Rs. 700 crore, driven by volume growth in PET products. EBITDA increased 19% to Rs. 12 crore.
Jubilant Pharmova is also pursuing a US$60+ million expansion that will add six new PET manufacturing sites by FY28, taking its total PET network to nine sites.
The Allergy Immunotherapy business delivered 18% YoY revenue growth to Rs. 214 crore, supported by healthy demand across the US and international markets.
EBITDA rose 5% to Rs. 66 crore.
The CRDMO Drug Discovery Services business recorded 8% YoY revenue growth to Rs. 174 crore, while EBITDA surged 43% to Rs. 45 crore.
The sharp improvement lifted margins by 630 basis points to 26%.
The API business, however, remained under pressure. Revenue stood at Rs. 135 crore, with EBITDA at Rs. 19 crore, as industry-wide pricing pressure and higher raw-material costs weighed on performance.
Generics revenue increased 4% YoY to Rs. 173 crore, with EBITDA at Rs. 4 crore, supported by two new product launches.
Meanwhile, clinical trials for Jubilant Pharmova's proprietary novel drugs are progressing as planned. Active enrolment is underway for lead programmes JBI-802, targeting Essential Thrombocythemia/MPN, and JBI-778, targeting NSCLC/Glioma.
Despite the near-term earnings pressure, management expects EBITDA margins to begin expanding from the second half of FY27.
The anticipated recovery is expected to be driven by the return of all SPECT radiopharmaceutical products to full commercial availability and the scaling up of technology-transfer programmes.
The company also sees an emerging opportunity in US-based sterile fill-finish capacity. Shifts in US tariff policy are accelerating requests for proposals for isolator-based sterile manufacturing, potentially positioning Jubilant Pharmova's Spokane expansion to capture long-term CDMO demand.
For now, the company's Q1 performance highlights a clear divergence: strong revenue momentum across key businesses, but significant near-term pressure on profitability as SPECT availability and Montreal remediation weigh on margins.
