Jubilant Ingrevia Ltd Q2 FY2026 Concall Summary

Key Takeaways

• Highest volumes in 10 quarters, pricing still a drag: Volume grew ~18% YoY, but soft pricing in Nutrition and short-term volatility in Specialty Chemicals kept the top-line story mixed.
• Specialty Chemicals margin engine is running: The segment held 25%-plus margins, powered by Fine Chemicals and CDMO deliveries, even as a temporary plant shutdown and price volatility caused a sequential dip.
• The CDMO ramp is now a visible, multi-year catalyst: One molecule shipped in Q2, the \$300 mn contract starts next quarter, and 10-plus wins carry a peak annualized revenue target of INR1,200 crore, with a significant proportion hitting the P&L next year.
• Nutrition margins are in a trough, with a mix-driven recovery promised: Pricing softness pushed segment EBITDA to 12–14%, but management expects a climb back toward 16–18% as the share of high-value cosmetic, food and pharma-grade niacinamide rises to 60–70% next year.
• What to watch next quarter: The start of supplies against the \$300 mn CDMO contract, the pace of Nutrition margin recovery as the high-grade mix improves, and whether the EU anti-dumping choline pipeline converts into material orders.

CDMO: The Growth Engine Taking Shape

• 10-plus molecules won, peak revenue INR1,200 crore: The portfolio includes the \$300 mn, 5-year agro-innovator contract and nine other molecules, all with exclusive or semi-exclusive arrangements and long-term volume commitments from customers.
• Ramp trajectory is back-end loaded: A typical CDMO contract delivers 15–20% of peak revenue in year one, 40–60% in year two, and 80–100% by year three, so the P&L impact accelerates through FY27 and FY28.
• One molecule already shipped: An intermediate for an expected blockbuster AI of a global innovator was supplied in Q2, described as "just the starting point" with no peak revenue disclosed.
• The \$300 mn contract starts next quarter: It is a signed contract with pre-agreed pricing, and management maintains the EBITDA margins built into the original business case will hold.
• Geography push is deliberate: The company has hired people on the ground in Europe, the US and Japan, its three priority CDMO markets.
• Capex is shared by design: Management declined to separate CDMO and Fine Chemicals capex because both use the same multi-purpose plants, and the company optimizes which products to manufacture where.

Deepak Jain: "The typical ramp-up of a new CDMO contract, especially when it is focused on innovative molecules is not more than 15% to 20% in the first year going to close to, let's say, 40% to 60% in second year and hopefully reaching the peak revenue by third year of 80% to 100%."

Specialty Chemicals: Strong Margins, Temporary Headwinds

• 25%-plus EBITDA margins sustained: Fine Chemicals and CDMO sales drove the performance, even as the segment absorbed a sequential dip from short-term pyridine and picoline price volatility and a temporary plant shutdown for maintenance.
• Pyridine derivatives delivered high double-digit growth on both a QoQ and YoY basis, signalling robust demand and competitive positioning.
• Diketene derivatives maintained growth momentum on both QoQ and YoY comparisons.
• New multipurpose plant at Gajraula broke ground during the quarter, with completion targeted by late 2026 and volume ramp-up starting in calendar 2027.
• Debottlenecking underway: Existing plants are being expanded by 15–20% to serve incremental volumes from new CDMO and Fine Chemical opportunities.

Nutrition & Health: Volume Strength, Margin Trough

• Record-high volumes in both vitamin B3 and B4: The volume story is intact, but pricing softness partially offset revenue growth, and segment EBITDA settled in the 12–14% range.
• Niacinamide mix shift is the margin recovery thesis: Volumes rose strongly QoQ, with a significant portion coming from high-value cosmetic and food grades where pricing is more stable and carries a built-in premium. Management hopes to take the high-grade volume share to 60–70% next year, targeting 16–18% segment EBITDA margins.
• Niacinamide pricing found a floor: Pricing troughed last quarter, and a slight uptick has been seen in recent months; management hopes the uptick sustains as the feed-grade share shrinks.
• Human-grade B3 plant is ramping: The plant commissioned in March has started shipping human-grade product, with volumes expected to build over the coming two quarters.
• EU anti-dumping duty on Chinese choline is an early-stage tailwind: Orders were booked and deliveries made in Q2, and a good pipeline is building, though the number is not yet material relative to the overall Nutrition business.
• New segment head onboarded this quarter, alongside a new US business development head.

Deepak Jain: "I think we'll keep digging is the short answer because the markets are very dynamic and what kind of pressure we have seen in some of the segments on pricing, it will be premature for us to just..."

Cost, Energy & Operational Levers

• Energy cost fell 16% YoY: Power and fuel expenses dropped to ~9.5% of revenue from 11.5–12% last year, driven by renewable power reaching 28% of the overall mix after the Bharuch site commissioning.
• A new boiler and turbine at Bharuch is expected to start this quarter, with benefits flowing from next quarter, pushing energy costs lower still.
• Lean 2.0 program on track: The INR100 crore-plus per annum cost savings target is firmly on track, and management sees further "juice" to extract in the years ahead.
• R&D investment is rising: The R&D and technology team has expanded significantly, and R&D spend as a percentage of Specialty and Nutrition revenue will increase in coming years, though management declined to give a specific forward percentage.

New Bets: Semi-Conductor Chemicals & Cosmetics

• Semi-conductor R&D facility announced for Greater Noida: A dedicated lab is being built with expensive equipment and a dedicated R&D team, but management framed this as a 5- to 10-year journey, not a near-term revenue driver.
• Cosmetics pipeline building: Multiple products have been developed and are seeing good traction with several customers.

Deepak Jain: "Semi-conductor is more of a 5- to 10-year journey rather than just, let's say, next couple of years, given the nature of that segment, the fact that it is new to India, not just to us."

Tariffs & External Risks

• US tariffs: only 2% of business exposed, zero impact so far: Existing molecules going to the US are not on the tariffed chemicals list, and management is hopeful of no future impact.
• Tariff uncertainty is stretching sales cycles: Discussions that should have closed in 3 months are now taking 6–8 months, creating a short-term drag on new business conversion.
• Acetyls pricing remains volatile: Volume was good last quarter, and early signs suggest similar volumes this quarter, but pricing is too unpredictable to project.

Deepak Jain: "Only 2% of our business falls in areas where duties have been imposed. And there also, we are far more competitive than Chinese if you take into account all the duties which have been put on the Chinese suppliers."

Guidance & Commitments

Key Metrics