Jagsonpal Pharmaceuticals (JAGSNPHARM) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 began with robust growth across all key financial and operational parameters, with revenue growing 23.1% year-over-year to Rs. 756.12 million and net profit more than doubling to Rs. 107.95 million, driven by strong brand equity and disciplined execution.

• Free cash increased by Rs. 153 million, reaching Rs. 1,609 million as of June 30, 2025, supporting future growth and potential acquisitions.

• Termination of CFO Sachin Jain for misconduct during probation, with recruitment for a new CFO ongoing.

• Maintained leadership in Gynae CVM, ranking #7, and reinforced presence in key therapy areas.

• Unaudited financial results for the quarter ended June 30, 2025, were approved by the Board on July 26, 2025.

Financial highlights

• Revenue from operations for Q1 FY26 was Rs. 756.12 million, up 23.1% year-over-year; operating EBITDA increased 24.1% to Rs. 157 million, with margins at 20.8%.

• Gross margin expanded by 80 basis points to 64.4%.

• PAT doubled to over Rs. 107.95 million, net margin at 14.3%.

• Free cash flow closing balance at Rs. 1,609 million, up Rs. 153 million sequentially.

• Shareholders' funds increased 29.6% year-over-year to Rs. 2,535 million.

Outlook and guidance

• Maintains annual revenue growth guidance of 15% for FY26, with organic growth at 9-10% and the remainder from Yash Pharma acquisition annualization.

• EBITDA margin guidance of 100-150 basis points expansion for the year, with margin improvement expected from Q2 onwards.

• ROE expected to remain in the 18-19% range over the next two years.

• Plans to launch 4-6 new products annually and pursue strategic inorganic opportunities.

• A final dividend of Rs. 2.5 per equity share (Rs. 166 million total) for FY25 was recommended, pending AGM approval.