J B Chemicals & Pharmaceuticals Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

J B Chemicals & Pharmaceuticals Ltd trades at ₹2,409, in a confirmed uptrend and 34 weeks into that stage. That is +18.9% against its own 200-day average. It sits at 97% of a 52-week range of ₹1,668 to ₹2,436. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 9 straight weeks.

Today the stock is in a confirmed uptrend — week 34 of stage 2, confirmed. At ₹2,409 it trades +18.9% versus its 200-day average and sits at 97% of its 52-week range (₹1,668–₹2,436).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +1,854% while the NIFTY 500 moved +280% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 9 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

J B Chemicals & Pharmaceuticals Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: FULLY_EXPANDED.

Our read, 17 May 2026. A chronic-mix compounder hit by a Torrent-integration reset — the branded core is intact, but CDMO missed by 12-14pp and management guidance credibility is impaired.

From the numbers. PE at 83rd percentile of 10-year range (1.52x median: 41.6x vs 27.3x). The market is pricing in full earnings recovery and merger synergies. FII selling since Dec 2024 peak of 14.64%. Cycle segment is FULLY_EXPANDED…

From the price. Price stage 2, week 34 — above its 200-day line, relative strength rising.

From the research. A chronic-mix compounder hit by a Torrent-integration reset — the branded core is intact, but CDMO missed by 12-14pp and management guidance credibility is impaired.

What is proven. A chronic-mix compounder hit by a Torrent-integration reset — the branded core is intact, but CDMO missed by 12-14pp and management guidance credibility is impaired.

What is not proven yet. 4 clear guidance misses across 4 calls: CDMO (flat vs 12-14%), domestic (9% vs 12-14%), international (Q4 -9% vs high-single H2 guide), CDMO FY27 run rate abandoned. Risks remain undisclosed until post-fact.

The test written in advance. Management Guidance Credibility — Systematic Pattern of Misses — Management Guidance Credibility — Systematic Pattern of Misses Q1 FY27 — does India branded return to double-digit as guided? Does CDMO show positive momentum? by the next result.

The test written in advance. PE at 83rd Percentile with FII Selling — Re-Rating Risk — PE at 83rd Percentile with FII Selling — Re-Rating Risk Q1 FY27 PAT YoY recovery — sub-10% would signal multiple compression risk by the next result.

The test written in advance. Trade Generics Exit Depresses Reported Growth 3+ Quarters — Trade Generics Exit Depresses Reported Growth 3+ Quarters Organic branded India growth (ex-trade generics) — must track separately from reported topline by the next result.

Lever 2 · Value-added mix — BUILDING. Chronic segment grew 19% vs industry 14% in FY26; trade-generics exit (7-8% of India sales) drove 400bps gross margin expansion to 70% in Q4 — structural improvement, not seasonal. What proves it keeps working: Chronic Portfolio Mix Shift — Structural Gross Margin Expansion. It stops working if Q1 FY27 — does India branded return to double-digit as guided? Does CDMO show positive momentum?

Lever 15 · Market-share gains — BUILDING. Fastest growing among top-25 IPM companies; 300-400bps volume growth advantage; 6 brands now in top-300 IPM. What proves it keeps working: India Market Share Gains — Outperforming IPM Consistently. It stops working if Q1 FY27 — does India branded return to double-digit as guided? Does CDMO show positive momentum?

Lever 5 · Regulatory approval — BUILDING. Procurement synergies visible since April 2026; distribution network optimization underway; back-end consolidation and coverage expansion for chronic therapies expected post-merger completion. What proves it keeps working: Torrent Merger Integration Synergies. It stops working if Q1 FY27 — does India branded return to double-digit as guided? Does CDMO show positive momentum?

Lever 3 · Management change — BUILDING. CDMO flat at Rs 494 Cr in FY26 vs 12-14% guide; management confirms customers and capacity are adequate — execution acceleration is the only constraint. What proves it keeps working: CDMO Business Recovery (Execution-Dependent). It stops working if Q1 FY27 — does India branded return to double-digit as guided? Does CDMO show positive momentum?

Sources: our stock research file (17 May 2026) · quarterly results through Mar 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

J B Chemicals & Pharmaceuticals Ltd reported ₹904 Cr of revenue in the Mar 26 quarter, −4.7% year on year. Over 10 years it has compounded at 13.1% a year. The last full year, FY26, came in at ₹4,148 Cr. The last four reported quarters add to ₹4,148 Cr.

Why this happened. JB Pharma has sustained 200-400 bps outperformance of IPM growth for multiple years. Q1 FY26: 13% vs 9% market (+400bps); Q2 FY26: 12% domestic vs 8% market; Q3 FY26: domestic grew 10% outperforming IPM. Six brands in top-300 IPM, three brands in top-100. Volume growth consistently 4-5% vs IPM 0.3-1%. The merged Torrent entity is expected to add coverage in chronic therapy areas where JB brands have gaps, potentially accelerating share gains.

FY26 revenue came in at ₹4,148 Cr (+5.9% on the year), capping 10 years at 13.1% compound. The latest quarter (Mar 26) printed ₹904 Cr, −4.7% year on year.

Pace check: the last four quarters averaged +5.8% growth against the decade's 13.1% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +5.9% over the last 4 quarters against +9.1%/yr over the last 8 — rolling over; TTM profit +7.4% vs +13.2%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

J B Chemicals & Pharmaceuticals Ltd's operating margin is 22.0% in the Mar 26 quarter, −2.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 14.0% to 27.0%. The current quarter sits inside that band.

Why this happened. JB Pharma has been systematically pivoting its India business toward higher-margin chronic therapies (cardiology, ophthalmology, CNS) since the Novartis ophthal portfolio acquisition. FY26 India branded grew 11% vs 10% IPM with chronic +19% vs +14% industry. The Q4 discontinuation of the trade-generics business (~7-8% of India sales running at zero margin per Torrent's commentary) eliminated the biggest margin drag, lifting gross margin 400bps to 70%. Key franchises: Rosuvastatin crossed Rs 100 Cr MAT, Sporolac grew from Rs 70 Cr (June 2022) to Rs 146 Cr (June 2025), Azmarda at Rs 75 Cr in cardiology heart failure. The chronic thesis is durable and margin-accretive.

The latest quarter's operating margin is 22.0%, −2.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 14.0%–27.0%, and FY26's 27.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −1.6 pp year on year while gross margin went +3.5 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

J B Chemicals & Pharmaceuticals Ltd earned ₹101 Cr of net profit in the Mar 26 quarter, −30.8% year on year. Full-year FY26 profit was ₹709 Cr. The 10-year compound rate is 15.8%. That is 11.2% of the quarter's revenue. The same quarter a year earlier earned ₹146 Cr.

Mar 26 profit was ₹101 Cr, −30.8% year on year. On the full year, FY26 printed ₹709 Cr (+7.4%), and the 10-year compound rate is 15.8%.

🚨 Why profit moved: revenue contributed −4.7% and the margin −2.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +6.1% vs revenue +5.8%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 125% of J B Chemicals & Pharmaceuticals Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹704 Cr of operating cash against ₹709 Cr of profit. After ₹110 Cr of capital spending, ₹594 Cr was left as free cash.

FY26: operating cash of ₹704 Cr against reported profit of ₹709 Cr, leaving free cash of ₹594 Cr after ₹110 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 125% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 125%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

J B Chemicals & Pharmaceuticals Ltd's cash conversion cycle runs 151 days in FY26, down from 153 days in FY21. Capital spending ran ₹494 Cr over the last 3 years. At FY26 sales of ₹4,148 Cr each day of that cycle holds about ₹11.4 Cr, so roughly ₹1,716 Cr sits inside the business at any moment.

FY26: debtors at 69 days, inventory at 192 days — roughly 6.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 151 days, tighter than FY21's 153.

The full loop: cash goes out to suppliers and production on day 0; stock waits 192 days to sell; customers pay about 69 days after that; and suppliers themselves are paid at 110 days — netting out to the 151-day cycle.

In money terms: at FY26 sales of ₹4,148 Cr, each day of the cycle holds about ₹11.4 Cr — so the 151-day loop keeps roughly ₹1,716 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹494 Cr over the last 3 fiscal years against ₹491 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹74.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

J B Chemicals & Pharmaceuticals Ltd earns a ROCE of 25% in FY26. That is up from a trough of 11% in FY18. Return on invested capital clears the cost of that capital by +10.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 17.1% net margin on 0.84× asset turns.

FY26 ROCE is 25%, recovered from a FY18 trough of 11% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 17.1% net margin × 0.84× asset turns × 1.19× balance-sheet leverage ≈ 17.1% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 22.2% − 12.0% = a +10.2 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

J B Chemicals & Pharmaceuticals Ltd carries total debt of ₹4.0 Cr against shareholder equity of ₹4,159 Cr as of Mar 26, a debt-to-equity of 0.00 — effectively unlevered. On the annual view that ratio went from 0.03 in FY22 to 0.00 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹4.0 Cr against shareholder equity of ₹4,159 Cr — a debt-to-equity of 0.00. On the annual view, debt-to-equity went from 0.03 (FY22) to 0.00 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 5.0 points of J B Chemicals & Pharmaceuticals Ltd over 8 quarters, the biggest move on the register. That takes promoters to 48.8% of the company. Foreign institutions moved +4.2 points over the same window, to 16.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. CDMO has top-5 originator customers (P&G, Kenvue, Abnova, Reckitt, unnamed fifth) with signed contracts in place. The execution bottleneck is in process development capability — management stated under analyst pressure that 'customers and capacities are present; it is just execution that needs to be addressed.' FY27 target of Rs 140-150 Cr quarterly (guided July 2025) was abandoned without update, but management expressed confidence in positive momentum on a 12-month basis. If execution genuinely improves (team expansion, faster delivery), CDMO could accelerate from the flat FY26 base. Not underwritten until Q1 FY27 actuals show recovery.

The register over the last two years — Promoters: −5.0 points over 8 quarters to 48.8%; Foreign institutions: +4.2 points over 8 quarters to 16.3%; Domestic institutions: +3.8 points over 8 quarters to 21.4%.

🚨 Why the register moved: promoters drove it (−5.0 points), absorbed on the other side by foreign institutions (+4.2 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

J B Chemicals & Pharmaceuticals Ltd: the Z-score reads 23.55. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why this happened. Torrent acquired KKR's 46.39% stake for Rs 11,917 Cr (closed January 21, 2026), with merger hearing scheduled second week June 2026 and completion expected 1-2 months thereafter. Synergy levers: (1) procurement advantages visible since April, (2) distribution network optimization, (3) back-end function consolidation, (4) field force coverage expansion for JB's chronic brands through Torrent's larger network. Revenue synergies require merger completion before they materialize. Rs 400-450 Cr total synergy estimate over 2-3 years per Torrent's Q3 FY26 commentary.

Why it matters: a Z-score of 23.55 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 23.55.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

J B Chemicals & Pharmaceuticals Ltd trades at 53.8× P/E, about the priciest it has ever traded. Its long-run median P/E is 28.0×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Why this happened. JB Pharma's debt-free status since debt repayment enables treasury income that compounds PAT growth. Other income grew from Rs 8 Cr to Rs 18 Cr YoY in Q3 FY26 purely from surplus cash deployment. With net cash at Rs 1,200 Cr post-Q4, this ~Rs 70-80 Cr annualized contribution is a structural PAT support. The Rs 9.3/share dividend recommendation signals continued return discipline.

Today's P/E of 53.8× is about the priciest it has ever traded, against a long-run median of 28.0× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +4.3% against a +45.6% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +20.6%/yr price move, ~+9.1%/yr came from earnings growth and ~+11.5 pp from the multiple (expanding); over 10y, of the +33.8%/yr price move, ~+23.2%/yr came from earnings growth and ~+10.6 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

J B Chemicals & Pharmaceuticals Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 23.9% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

48.2/100 — rank 19 of 44 in Pharma - Formulators · 96% evidence confidence

J B Chemicals & Pharmaceuticals Ltd scores 48.2 out of 100 against the 44 companies it is compared with in Pharma - Formulators, ranking 19. Strong business, demanding price: keep it on the quality list, but require either earnings upgrades or valuation compression.

The four contributions add to the total exactly: 10.8 + 20.6 + 4.1 + 12.7 = 48.2. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What J B Chemicals & Pharmaceuticals Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 CDMO FY26 Annual Growth Guidance Missed · 12 May 2026. Both prior calls maintained explicit 12-14% FY26 CDMO growth guidance, with the Nov 2025 call additionally affirming a strong H2 FY26 order book and robust pipeline. The May 2026 call reveals CDMO finished the full year flat at 494 crores, approximately 12-14 percentage points below the guided growth rate. Execution delays in product delivery are now surfaced for the first time as a structural challenge, a risk that went entirely unmentioned in both prior calls.

🚨 India Domestic FY26 Growth Guidance Missed · 12 May 2026. Both prior calls maintained explicit 12-14% domestic business growth guidance for FY26, with the Nov 2025 management reaffirming it directly in response to an analyst question. The May 2026 call reports full-year India business growth of only 9% overall and 11% for branded, attributing the shortfall to trade generics rationalization - a business line contributing 7-8% of India revenue that was never flagged as a risk to the 12-14% guidance in either prior call.

International Formulations H2 FY26 Recovery Guidance Contradicted · 12 May 2026. The Nov 2025 call explicitly guided for high single-digit H2 FY26 growth in ROW markets and a South Africa bounce-back, citing a strong order book. Instead, Q4 FY26 international formulations declined 9% and full-year growth was only 2%. The May 2026 call attributes the Q4 decline to an operational reset under Torrent and container shipping disruptions - factors entirely absent from the Nov 2025 recovery narrative.

CDMO FY27 Quarterly Run Rate Target Not Reaffirmed and Execution Delays Newly Surfaced · 12 May 2026. The Jul 2025 call committed to a specific FY27 quarterly CDMO run rate of INR140-150 crore, implying roughly 13-21% growth from the now-flat FY26 base, and Nov 2025 closing remarks continued to support mid-teens CDMO growth going forward. The May 2026 call, the first post-acquisition opportunity to address FY27 CDMO outlook, provides only vague positive momentum language and newly surfaces structural execution delays, without acknowledging or updating the prior specific quarterly run rate target.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions