Jubilant Pharmova Ltd Q4 FY26 Earnings Call: Guides $60–80M Spokane Line 3 Revenue, Sees 17-18% H2 EBITDA Margin

Jubilant Pharmova Ltd held its Q4 FY26 earnings call on May 22, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Headline Financial Performance

• Q4 FY26 revenue of Rs.2,290 crores— grew 19% YoY, driven by Radiopharma, energy, CDMO sterile injectables, and generics.
• Q4 FY26 EBITDA of Rs.363 crores— up 2% YoY; margin contracted 272 bps to 15.7%, blamed on SPECT product supply shortage in Radiopharma and cost under-absorption at CMO Montreal.
• Full-year FY26 revenue of Rs.8,258 crores— increased 14% YoY with growth across all segments, notably CDMO sterile injectables.
• Full-year FY26 EBITDA of Rs.1,326 crores— grew 8% YoY; margin declined 99 bps to 15.9%, primarily due to lower CMO Montreal production in H2.
• Normalized PAT for FY26 of Rs.442 crores— rose 7% YoY, supported by improved operating performance.

Spokane Lines 3 & 4 & Tech Transfer Momentum

• Line 3 has 10+ products in tech transfer— ~80% are complex biologics; commercial production starts in late FY27, subject to FDA approval.
• Line 3 tech transfer revenue guided at $60–80 million in FY27— predominantly from the products already onboarded, including one of the world's largest oncology products (commercial).
• Line 3 peak revenue of $80–90 million expected— anticipated 1.5–2 years earlier than originally projected, driven by faster onboarding.
• Line 4 expansion positions for high-value biologics— remaining capex of $34 million on ~$200 million total; lines designed for complex biologic products with higher aseptic controls, supporting liquid and lyophilized drug products.
• Strategic shift from volume-driven CDMO to complex specialty sterile injectables— management cited this as supporting higher technology transfer and development service revenues and long-term partnerships, part of the company's Vision 2030 goals.
• Spokane business margins in FY27 are expected to be similar to FY26— as full costs for line 3 are being realized; margin improvement anticipated thereafter as utilization reaches full capacity.

Short-Term Headwinds and Pipeline Milestones

• ~$14 million revenue impact from SPECT shortages in H1 FY27— management expects this to affect the high-margin SPECT franchise, with normalization anticipated in H2 FY27.
• Rubyfill franchise growing at 30%+ in market size, share, and price— management cited the razor/razor-blade model: installation of elution system generates recurring generator revenue every 6–7 weeks; market growing at ~10%, with company gaining share.
• MIBG (I-131 MIBG) NDA filing targeted for H2 FY27— orphan drug designation enables accelerated 6-month review from filing if no gaps; management evaluating priority review voucher (PRV) eligibility, noting prior approval of Azedra (discontinued) complicates PRV status.
• One radiopharma pipeline product originally planned for FY27 launch pulled out— moved to a third-party CMO network; management expressed "good confidence" from exhibit batches and expects acceleration, with exhibit batches for two non-MIBG pipeline products in FY27.
• FY27 radiopharma guidance: low double-digit revenue growth with 38%–42% margins— margin pressure in H1 from SPECT absence, recovery in H2 after product release from CMO Montreal (mid to end Q2 FY27).
• FY28 radiopharma outlook— SPECT shortage alleviated; Rubyfill continues strong growth; first year of NDAs will be a ramp year with investment in sales and marketing;no specific FY28 numerical guidance was given.

Two-Half Margin Story and Cost Structure

• FY27 EBITDA margin guided as a "story of two halves"— management expects growth momentum to strengthen in FY27, but H1 margins will be temporarily impacted by the ~$14 million SPECT supply shortage.
• H2 FY27 EBITDA margins guided at 17%–18%— management described this as a representative run-rate for FY28 onwards, helped by stabilization of CDMO Montreal production and related commercial benefits (expected from Q4 FY27).
• Montreal plant (CMO Sterile Injectables) reported an EBITDA loss of ~Rs.150 crore in FY26— ~Rs.200 crore including exceptional items; management expects FY27 losses to be similar to FY26, with a "meaningful reduction" in FY28 from cost-cutting, and line five revenue starting in FY29;no specific break-even guidance was given.
• Consolidated FY26 EBITDA margin was approximately 15.9%— reflecting the drag from Montreal losses and SPECT shortage in H2 FY26.
• Current tax rate of ~33%— management expects potential to decline gradually as absolute PBT improves.

Capex Cycle, Net Debt Target, and ROCE Discipline

• FY26 CAPEX closed at Rs.1,666 crores— FY27 CAPEX guided at a similar level, with key projects including Spokane Line 4 (remaining $34 million), Montreal Line 5 (remaining $37 million), and a pet farm project (remaining $3 million).
• No new CAPEX beyond already announced investments for the next 12–18 months— management stated that lines 3, 4, 5 and tech manufacturing are the current commitments, spanning into FY27-28.
• Capital allocation based on a minimum ROCE threshold— management described the current policy as requiring any investment to cross this threshold; future opportunities will be evaluated through the same ROCE-accretive lens.
• Net debt stood at Rs.1,900 crores— management targets reducing it to zero by September 2030, driven by revenue and EBITDA growth from FY26 onward; net debt reduction anticipated from FY28 onwards.
• Free cash flow expected to improve once the CAPEX cycle ends in FY27— driven by commercial production from Line 3 and tech transfer revenue from Line 4.

Allergy, Discovery, Generics, API, and PET Pharmacy

• Allergy business FY26 revenue grew 12%— vs. 3% in FY25; US segment ~90% of revenue; US allergy market growing 3–5%, with company gaining share; non-US (especially Europe) and adjacencies via business development cited as key growth drivers.
• Discovery (CRO) revenue in FY26 grew 15% to over Rs.650 crores— with proportional EBITDA growth; management expects competitive intensity in large pharma but improved demand from biotech, and remains on track for its FY30 vision.
• Generics revenue in FY26 grew 13%— EBITDA margin expanded 250 bps to a double-digit level; management targets a margin near 15% and revenues aligned with the 2030 vision.
• API custom manufacturing revenues expected to start contributing in FY27— management expects this to drive margin improvement from the current 15% EBITDA level in the short to medium term.
• First three PET pharmacies expected to be commercialized in FY27-28— management noted potential delays due to FDA PAI timelines; full ramp-up to peak may take three to four years.