Blue Jet Healthcare conducted its Q3 FY26 Earnings Call on February 13, 2026, detailing financial performance and strategic capital expenditure plans. While Q3 revenue saw a 40% YoY decrease, the management highlighted major growth drivers, including the ₹1,000 crore Vizag Greenfield Project, expected to solidify its global standing in complex chemistries. The company remains highly positive on the FY27 outlook driven by key product launches and expanded R&D capabilities.
Q3 FY26 Financial Performance Snapshot
The company reported a challenging quarter YoY, with Revenue from Operations decreasing by 40%, falling to ₹1,924 million from ₹3,184 million last year. Consequently, EBITDA decreased by 62% and PAT by 39%. Sequentially (QoQ), revenue increased by 16%, driven mainly by increased contrast media dispatches recognized this year, though EBITDA and PAT saw decreases of 15% and 23%, respectively.
On a nine-months basis (YoY), revenue from operations increased by 3%. Gross Margin for Q3 stood at 52%, slightly lower due to product mix changes and a one-time inventory write-off. The EBITDA margin for the quarter was 24%, impacted by lower sales volume and one-time labor code implementation costs.
Major Strategic Expansion: Vizag Greenfield Project
Management announced that the groundbreaking for the Vizag Greenfield Project is scheduled for February 2026. This represents a pivotal growth platform, involving a total board-approved investment plan of Rs.1,000 crores over the next three to four years. Phase-1 will focus on dedicated capacity for APIs and intermediates aligned with confirmed customer requirements, emphasizing Blue Jet’s positioning as a reliable global partner in complex chemistries.
Operational Progress and CAPEX Execution
V. K. Singh detailed operational progress, noting that the expansion project at Mahad Unit-3 for backward integration into contrast media intermediates is nearing completion, with validations expected in Q1 FY27. This facility represents a cumulative CAPEX of approximately Rs.146 crores to date.
Furthermore, the company has secured lease space for R&D activities in Hyderabad, with development work expected to commence from Q3 FY27. A new R&D center is also planned with an investment of about Rs.40 crores, focusing on GLP-1 intermediates and bio-catalysis.
Pipeline Momentum and Outlook
Blue Jet is tracking around 20 active RFPs in the CDMO pipeline, including six high-conviction Phase-3 programs. The management expressed strong confidence in the FY27 outlook, citing capacity utilization updates, the impending launch of a new artificial sweetener in FY27, and the strategic importance of the Vizag CAPEX, which is demand-driven.
Regarding the API/PI vertical, late-stage assets currently number six, expected to commence contributing in about two years. The company also confirmed that a new iodinated contrast media NCE product is slated for commercial launch in FY27, with value per Kg expected to be higher due to forward integration.
Sustainability Milestones
The company continues to prioritize sustainability, noting that 70% of power consumption is now met through wind and solar energy. The team recently received the National Award for Excellence in Energy Management from the CII.
Addressing Investor Concerns
When addressing margin volatility, management clarified that the normalized Gross Margin should be viewed over nine quarters, stabilizing between 50% to 55%, depending on the product mix. Regarding the large Vizag CAPEX funding, management confirmed they have Rs.410 crores in cash as of December and will utilize internal accruals initially, while retaining flexibility to tap debt or equity markets, emphasizing they have headroom given their debt-free status.
Source: BSE
