Jubilant Ingrevia Ltd (JUBLINGREA) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day and welcome to Jubilant Ingrevia's Q2 and H1 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero
Moderator: touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pavleen Taneja, head of Investor Relations at Jubilant Ingrevia Limited. Thank you, and over to you, sir.
Pavleen Taneja (Jubilant Ingrevia Ltd): Thank you, Ikra. Good evening, everyone. Thank you for joining the Q2 FY2027 earnings conference call of Jubilant Ingrevia Limited. I would like to remind you that some of some of the statements made on the call today could be forward-looking in nature, and a detailed disclaimer in this regard has been included in the press release and the result presentation that has been shared on our website. On the call today, we have Mr. Shyam Bhartia, Chairman; Mr. Hari Bhartia, Co-Chairman; Mr. Deepak Jain, CEO and Managing Director; and Mr. Varun Gupta, CFO, Jubilant Ingrevia Limited. I now invite Mr. Shyam Bhartia to share his comments.
Shyam Bhartia (Jubilant Ingrevia Ltd): Thank you, Pavleen. Very good evening to all of you. We are pleased to report that we continue to sustain strong growth momentum in Q2, with revenue growing 24% year-on-year and EBITDA increasing 51%, reflecting disciplined execution across our businesses. Our quarterly EBITDA has more than doubled over the past 3 years, underscoring the successful execution of our Pinnacle strategy and continued focus on disciplined cost management. This momentum was also reflected in our strong first half performance, with revenue growing 25% and EBITDA by 44% year-on-year. We are also delighted to announce that we have signed an agreement to acquire 40% stake in Zet ZetOne Technologies Limited. This marks our entry into electronics design management system space, which will enable us to offer more integrated value proposition to customers in the electronics and semiconductor sectors. Now, let me take you through the key developments across the markets we operate in. Acetyls: Amid continued geopolitical uncertainties, volumes remained stable, while firmer crude prices supported improved realization. However, input and utility costs during the quarter partially offset the benefits of improved pricing. Pharmaceuticals: The pharmaceuticals segment continued to grow, supported by steady volumes and sustained demand for intermediates. Agrochemicals: The agrochemical segment remained under pressure, with stable volumes, but muted pricing primarily due to excess capacity in China. Personal Care: We continue to witness strong volume growth in personal care, alongside increasing traction with new customers seeking outsourcing partnerships. Nutrition: The nutrition segment maintained steady volumes despite some softening in Vitamin B3 pricing in the animal feed segment over the past few weeks. Semiconductors and Electronics: We continue to see strong growth in our new molecule pipeline, with encouraging customer traction, particularly in Japan. This reinforces our confidence in the growth opportunities emerging in this sector. Now, let me share few details of our future outlook. Our Pinnacle journey continues to progress well, supported by strong revenue and EBITDA growth, along with robust pipeline of growth opportunities. We remain confident of sustaining this momentum, with growth expected across all three business segments in FY '27. Within Acetyls in particular, we anticipate higher volumes supported by plant closures in Europe. Additionally, our new multi-purpose plant remains on track for commissioning by the year-end. This will further strengthen our CDMO and fine chemicals growth roadmap
Deepak Jain (Jubilant Ingrevia Ltd): Thank you very much Mr. Bhatia and very good evening to all of you. We appreciate your participation in our Q2 and H1 FY '27 investor call. Let me start by giving a quick overview of our business. We continued to execute well against our strategic priorities despite ongoing global uncertainties. Our di- diversified sourcing capabilities, strong customer partnerships and agile operations enabled us to effectively navigate these disruptions and price volatility while managing cost pass throughs. This execution strength is clearly reflected in our performance during Q2 and H1 FY '27. We delivered another strong quarter in Q2, reinforcing our performance for H1 FY '27. Revenue reached an all-time high of ₹1,394 crore, up 24% year-on-year, supported by stronger realizations and stable volumes. EBITDA rose 51% year-on-year to ₹221 crore, the highest in the last 3 years while PAT increased 60% year-on-year to ₹1,111 crore. In specialty chemicals, the business delivered a strong performance with revenue reaching ₹560 crore, up 16% year-on-year and 5% sequentially, led by healthy volume growth across Fine Chemicals and CDMO. We delivered EBITDA of ₹140 crore, translating into a strong EBITDA margin of 25%, driven by improved pricing across our value added Fine Chemicals and CDMO portfolio. In Pyridine and Picolines volumes remained stable despite continued softness in pricing. Our ongoing cost optimization and capacity debottlenecking initiatives are expected to strengthen performance going forward. Our Fine Chemicals business delivered broad-based growth across Pyridine and Diketene Derivatives, supported by improved pricing with particularly strong momentum in the Diketene portfolio. In personal care, we have multiple products under development and are seeing increasing traction across key personal care segments and customers. Our CDMO business continued to build strong momentum across Agro, Pharma, Personal Care and Semiconductors. Agro delivered healthy volume growth led by higher innovator CDMO volumes while we are seeing strong customer engagement in Pharma with our U.S. and Europe roadshows with innovators. In semiconductors, we continue to see growing inquiries and an expanding application pipeline, supported by our upcoming R&D and clean room facility in Greater Noida. Overall, we have 25 plus confirmed molecules in our pipeline which are expected to drive our future growth in coming years. In nutrition and health solution business, it delivered another stronger quarter with revenue reaching ₹270 crore, up 50% year-on-year and 11% sequentially. EBITDA increased to ₹39 crore, representing growth of 87% year-on-year and 9% sequentially while margins remained healthy at 15%. Within Human Nutrition, B3 delivered strong volume growth, both year-on-year and sequentially, led by double-digit growth across food and cosmetic applications. CCC-BT also witnessed improved volumes and pricing, supported by strong customer traction across EU, US and India. In Premixes, the Remidex integration continues to strengthen engagement and sales with Tier-1 customers in India. Our animal nutrition business also continued to show healthy momentum. B3 delivered strong double-digit volume growth, both year-on-year and sequentially while pricing remained marginally soft. Choline maintained its domestic market position with continued traction and sequential improvement in volumes in Europe. Premixes also delivered strong pricing improvement, supporting healthy margin performance. In Chemical Intermediates business, it delivered another strong quarter with steady volumes and improved realizations amid higher input costs rising from elevated crude prices. Segment revenue grew 24% year-on-year and 8% sequentially to ₹563 crore. EBITDA rose significantly to ₹64 crores, up 226% year-on-year and 13% sequentially, driven by improved realizations across the product portfolio. Acetic Anhydride delivered healthy sequential volume growth, supported by resilient Pharma demand and market share gains in Europe while maintaining a stable domestic market position. We also witnessed a strong double-digit pricing improvement year-on-year and with the competitor plant's closure in Europe, we expect a further strengthening of demand and pricing going forward. Ethyl Acetate continued to see steady sequential volume growth while realizations improved significantly both year-on-year and quarter-on-quarter, reflecting the elevated input cost environment. Let me also share the update on M&A, specifically
Deepak Jain (Jubilant Ingrevia Ltd): ZetAOne. I'm delighted to share that we have recently signed an agreement to acquire 40% stake in ZetAOne with an investment of 189 crore. The transaction is progressing well and the shareholders agreement will also be concluded soon. ZetAOne operates in the electronic design and manufacturing services space, providing us access to the broader electronics and semiconductor ecosystem. This transaction will enable us to deliver an integrated value proposition in electronics and semiconductor space, leading to long-term and sustainable value creation. We are already witnessing encouraging customer traction with several discussions underway with mid-size and large customers. ZetAOne will also broaden our access to new customers and deepen relationships with OEMs and technology companies across semiconductors, aerospace defense, industrial, and related electronic segments. ZetAOne has delivered a strong growth over the last three years and based on the current momentum we expect the business to grow by at least 60% to 70% this year. The company is also establishing a new manufacturing facility in near Bangalore which will further support its growth journey. With the strong momentum achieved in the first half of FY27, we are increasingly confident that our Pinnacle strategy is delivering the desired outcomes. We believe FY27 will be a pivotal year in our journey, providing a strong foundation to accelerate growth and create greater value in the quarters ahead. We'll now be happy to address any questions that you may have. Thank you.
Moderator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Siddharth Gadekar from Equirus Securities. Please go ahead.
Siddharth Gadekar (Equirus Securities): Hi, sir. Good evening. Sir, first question is on our annual guidance of 750, 800 crores. Now, given that this European closure has come in somewhere in mid-September and also our guidance did not include any con contribution from the large CDMO contract in the second half. So, how should we think about the guidance now for the full year?
Deepak Jain (Jubilant Ingrevia Ltd): Thank you, Siddharth. Good question. I think we we are sticking to our guidance. In fact, we think we should, given the strong performance in the first half of the year, we should hopefully be closer to the upper end of the guidance we have given for the year. Relat Regarding your question on the plant closure in Europe, it is a very recent development and and things are still playing out on the ground. So, we expect some uplift starting to happen only from from early part of next calendar year. How much of that can be captured in this year, we will have to see. But we will look at it as a as a multi-year opportunity, of course, and and hope to get a big blip in FY28 from that opportunity.
Siddharth Gadekar (Equirus Securities): Got it. Sir, second is now on the large CDMO contract. So, now how should one think about this given that have you got any further visibility on the orders or any take-or-pay commitment?
Deepak Jain (Jubilant Ingrevia Ltd): So, as I have communicated in the past, the first lot that we received as an order from the customer that has been delivered, in fact, now, as per the commitment and understanding with the customer. For future volumes, as I said in the past, there have been several scenarios which we have discussed with the customer. We are very close to concluding what the way forward would be. And as soon as we have the visibility, we'll be able to disclose that to all of you, hopefully within next few weeks.
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