BlueJetHealthcare announces its Q3 results
Net Profit Down 59.6%
Revenue Down 39.6% At ā¹192.4 Cr Vs ā¹318.3 Cr (YoY)
EBITDA Down 62.2% At ā¹47 Cr Vs ā¹124 Cr (YoY)
Margin At 24.3% Vs 39% (YoY)
6 Likes
Blue Jet Healthcare -
Q3 FY 26 concall highlights -
Vizag Greenfield expansion - ground breaking ceremony scheduled for end of Feb 26. Shall be spending 1000 cr over next 3-4 yrs
Hyderabad R&D center - construction should begin in H2 FY 27. Will be investing aprox 40 cr here. This facility shall focus on - peptides, GLP 1 intermediates, CDMO late stage development, bio-catalysis
Artificial sweeteners - initiating exhibit batches of the new sweetener developed by the company. This will compliment their existing portfolio of high intensity sweeteners
Mahad Unit - 3 - capex nearing completion. New products like - Contrast Media intermediates and KSMs ( for backward integration purposes ) shall be produced here. Should go commercial wef H1 next FY. Have spent 145 cr towards completion of this capex
Seeing a surge in RFPs - currently tracking about 20 RFPs ( 6 are high potential, phase 3 molecules + 1 contrast media NCE )
QoQ improvement in revenues is due to better off take of their contrast media molecules
GMs in Q3 @ 52 pc vs 55 pc ( in H1 ) due - change in product mix + one time inventory write off. EBITDA margin compression is also due to these factors + hiring of foreign consultant + implementation of new labour codes
De-stocking of Pharma Intermediate ( due excess channel inventory ) + Re-alingment of supply chains ( my guess - in favour of Neuland Labs ) iro Bempedoic acid - are the two factors leading to sharp fall in overall sales. Should take another 2 Qtrs or so be fully normalised. The end molecule - Nexletol, is showing MoM growth ( in double digits ). Plus new mkts like Japan, Canada are also opening up. Company continues to be bullish on long term prospects of this molecule ( ie till 2031 )
Company has 6 late stage Pharma Intermediates in its pipeline. Should start commercial work wrt these in about 2 yrs from now
Company doesnāt foresee them losing meaningful mkt share to Neuland for Bempedoic Acid. They expect their Bempedoic sales to revive in FY 27
Three growth levers for FY 27 wrt Contrast Media space for the company include - Advanced Intermediate for a contrast media product which the company already makes ( have capacities in place for next 5 yrs ) + CM NCE intermediate whose supplies started in Dec 24 + Backward integration wrt another CM molecule to help bump up companyās margins wrt this product. These three initiatives should drive the CM segmentās sales growth in next FY
Bempedoic Acid sales + Contrast media initiatives mentioned above - should help them report good numbers in FY 27 ( management is guiding for full FY 27 numbers to be similar to full FY 26ās numbers )
May announce new contract wins for newer API supplies probably by end of Q4. Some interesting stories are cooking in that space
As new Pharma intermediates + CM intermediates / CM products keep coming on stream, companyās client and product dependence should keep reducing with every passing year
Should be able to guide on Parma intermediate segment sales for next FY by the end of Q4 ( once some more clarity emerges )
Cash on books @ 410 cr - should help fund the future capex
Goods in transit ( wrt CM products ) at the end of Dec are greater than Goods in transit at the end of Sep. This would mean a good Q4 outlook wrt CM product sales
Disc: holding, biased, not SEBi registered, may add once I feel the worst is over ( still analysing ), posted only for educational purposes
20 Likes
Blue Jet reported a major all-round miss in 3QFY26.
In contrast media, revenue recognition delays in ABA HCl and a delay in the commencement of commercial supplies of iodinated ABA HCl. PI&API sales were impacted by continued inventory destocking and higher-than-expected loss in wallet share in Bempedoic Acid. Factoring in the lower sales in both these critical molecules (ABA HCl and Bempedoic Acid contributed ~68% to FY2025 sales)
Pharma intermediates and APIs (PI&APIs), continued destocking of Bempedoic Acid at the client end impacted Blue Jetās 3QFY26. Daiichiās supply chain became separate from Esperionās (innovator) since Nov-2025, and Daiichi has onboarded Neuland as the primary supplier instead of Blue Jet, driving lower-than-expected wallet share for Blue Jet. Accordingly, due to this structural reset, need to factor in lower Bempedoic Acid intermediate sales for Blue Jet over FY2026-28E. While the end-market sales are showing a strong ramp-up, keep a close eye on competition from Leqvio and upcoming molecules such as New Amsterdamās Obicetrapib and newer PCSK9 inhibitors such as Merckās MK-0616.
Source: Kotak report
9 Likes
Where was Kotak when stock raised to 1000 levels, cohance at 1300? CDMO is a limpy business and no one can predict even a quarter. When stock is in buy range brokerages issue a sell call and when its too euphoric we see buy calls, it is true not only for bluejet, suven also for trent, Kaynas and many more. Human psychology is 90% and valuations are 10% at any point of time. Bluejet is running cheap and trading below its mean valuation right now with high safety of margin but we will listen to avoid the stock and sell calls from brokerage houses. 
20 Likes
I agree, and the stock may bounce as well from current levels however can it reclaim and cross itās previous all time high is what Iām not sure about; especially with Bempedoic acid segment getting clouded (thinking out aloud)! I may be completely wrong too
4 Likes
Promotor still hold 79% , public float is 14% and stock is besten down, donāt look only at bempedioc acid, contrast media is still largest revenue contributor, lot of RFPās are in pipeline in Onco/CNS stage with three have more than 1 B USD end market potential. Stock is battered badly hence all optimists are out hence chances of losing are very thin from here. I had traded in this from 650 to 900 levels and removed from tracking as this classified as good company at abnormal valuation above 1000, bought 25% at 570 and 75% at 360 levels, will hold it as promotor has large skin in game and seasoned player. Secondly, Indian stock markets are not offering much long term opportunities, IT sector will further derate from here, expecting 15-20% drop across IT sector, persistent, coforge, LTTS may face larger heat as AI will kill all digital skill based work. Manual research era is over, i am using screener AI and responses are shocking, deep down analysis is mere 5 minutes. Renewable sector is over, huge supply glut in solar panels, solar cell will have over supply next year, 50 GW renewable power is awaiting grid connectivity as demand is already surplus. This will affect all power ancillary space including cables, transformers, transmission is only sector to look for two year perspective. Railway defence will struggle going forward from stock price gain perspective. Consumption is cheap however cheapness is due to large number of local players coming in market, VC funded or Family owned setups. Some companies having niche and catering to top 5% of population can be looked as investment options. All in all i find Pharma as a contra sector where india still has some edge globally, CDMO is a good space to be in. Finding right valuations of cohence and bluejet from safety of margin perspective, added both, already holding Wockhardt as my top pick in Pharma innovation and Narayana Hrudayala for PF stability as avoiding losses is very important at current juncture. Sai life, Senores, Bluejet, Cohence, Jubilant and Supriya will see good interest from PMS and MFā as capital rotate from IT sector in mid and small cap segment.
33 Likes
Earlier someone mentioned that Daiichi Sankyo sourced the API from Fareva La VallƩe, which in turn procured intermediates from Blue Jet, while Neuland supplied API directly to Esperion from India.
Now, with Esperion transitioning manufacturing responsibilities to Daiichi for the European markets, how could this shift create uncertainty around Blue Jetās supply prospects and potentially result in lost opportunities in favor of Neuland?
Can someone please clarify?
5 Likes
Hey Folks,
Does anyone have any updates on the recent meeting outcomes between Muddy Waters Capital?
1 Like
Iām very late to answer still let me try to break this down simply
The original supply chain looked like this:
Blue Jet (supplies BA intermediate, n-2) ā Fareva La VallĆ©e, France (converts to BA API) ā Daiichi Sankyo Europe (makes the formulation and sells in Europe under license from Esperion)
In parallel, Neuland supplies BA API directly mostly to Esperion for the US/UK market, and also to Fareva.
So Blue Jetās customer was effectively Fareva, which was DSEās API supplier for Europe.
Now whatās changing:
Esperion has been transitioning European manufacturing responsibilities fully to Daiichi Sankyo (that you have already highlighted). When Esperion was controlling the European supply chain, Fareva was their designated API manufacturer and BJ was the natural intermediate supplier into that chain. Now that DSE is taking over, DSE gets to choose its own supply chain. DSE may decide it wants to source API directly from Neuland (which already has an established BA API relationship), bypassing Fareva and by extension, bypassing Blue Jetās intermediate volumes.
BJ doesnāt supply API. They supply the intermediate that goes into making API. If DSE builds a supply chain around Neuland as the API source, BJās relevance in that chain reduces unless they supply the intermediate to Neuland instead which would be a domestic B2B transaction, likely at much lower margins than the export route through Fareva.
Export data from September 2025 onwards actually showed BJ starting to ship the BA intermediate directly to Corden Pharma in the US, bypassing the France route entirely. That could be a positive sign it shows BJ is diversifying its intermediate customer base and potentially getting into the DSE/Esperion US chain directly.
In latest call VK Singh explicitly confirmed that: āIt is just about some realignment and channel de-stocking. We were the primary suppliers in the past. And we believe that we will continue to be the primary suppliers.ā They also confirmed binding forecasts and purchase orders exist for FY27.
The risk is real but and its not binary btw. BJ isnāt being cut out fully they still have regulatory stickiness since any new intermediate supplier needs a regulatory pathway that takes 18+ months. However, the configuration of how much BJ supplies, through whom, and at what margin is in flux. The Neuland threat is specifically at the API level, not the intermediate level but if DSE goes exclusively to Neuland for API, BJ loses intermediate volumes through the Fareva route.
Q4FY26 intermediate revenue is the cleanest signal to watch
36 Likes
There is a saying from Joel Greenblatt, always look down when you buy a stock, stock will take care of its upside. Generated 68% returns in a month in cohance, Bluejet is also looking strong, long term prospects are good for both, more excited about Cohance now as moat is super strong with a professional jockey at the helm Umang Mehra, still remember how Vishaka Mulye changed fortunes of AB Capital.
10 Likes
Annual Results out - https://www.bseindia.com/xml-data/corpfiling/AttachLive/ccbaf834-c182-4d3e-9de5-c6d39d84a383.pdf
Q4 FY26 Financial Highlights
Revenue: ā¹2,347 million (+22% QoQ, but -31% YoY)
EBITDA: ā¹713 million with a 30% margin (+52% QoQ)
Profit After Tax (PAT): ā¹643 million with a 27% margin
FY26 Full Year Financials
Revenue: ā¹9,473 million (-8% YoY)
FY26 EBITDA: ā¹2,941 million (31% margin, down from 37% the previous year)
FY26 PAT: ā¹2,478 million (-19% YoY)
Key Operational Updates
Segment Performance: Q4 growth was driven primarily by an increase in Advance Contrast Media sales, while earlier YoY declines were attributed to negligible PI molecule sales and customer inventory adjustments.
Expansion Plans: The board approved a major greenfield site project in Visakhapatnam, with a total planned investment of ā¹1,000 crores over the next 3 to 4 years to expand API and intermediate capacities.
Could not find any update on the Bempedoic Acid related supplies in this quarter. Am I missing anything?
Fundraise:
Proposed QIP / Preferential Issue / Private Placement.
Amount to be Raised:
Up to ā¹1,000 Cr
Cash Received:
ā¹0 Cr (only approval sought, no allotment yet)
Mcap:
~ā¹8,000 Cr
Fundraise/Mcap:
~12.5%
ā¢ This is an enabling resolution; actual amount raised could be lower than ā¹1,000 Cr.
Wockhardt at ATH, 22% PF allocation, its a 3X for me, long term targets are too high. Bluejet is preparing for long term growth, Andhra plant has 65% committed capacity, it may remain range bound for some time, 3 year growth will be excellent.
14 Likes
BlueJet Healthcare -
Q4 and FY 26 results and concall highlights -
Q4 outcomes -
Revenues - 234 vs 340 cr, down 31 pc ( however, they r up 22 pc vs Q3 )
Gross margins @ 56.4 vs 54.9 pc ( in Q3, GMs were @ 51.7 pc )
EBITDA - 71 vs 140 cr, down 49 pc ( margins @ 30 vs 41 pc ). In Q3, EBITDA was @ 47 cr with margins @ 24.5 pc
PAT - 64 vs 110 cr, down 41 pc ( in Q3, PAT was @ 40 cr ). Q4, Q3 and Q4 LY - include other income of 23 cr, 14 cr and 12 cr respectively. This other income is coming from - forex gains due rupee depreciation + treasury income on account of surplus cash on books
Q4 sales breakup -
HI Sweeteners - 37 vs 30 cr
CM Intermediates - 193 vs 101 cr
Pharma Intermediates - 3 vs 196 cr
FY 26 outcomes -
Revenues - 947 vs 1030 cr, down 8 pc
GMs @ 54 vs 55 pc
EBITDA - 294 vs 377 cr, down 22 pc ( margins @ 31 vs 37 pc )
PAT - 247 vs 305 cr ( down 19 pc )
FY 26 sales breakup -
HI Sweeteners - 131 vs 133 cr
CM Intermediates - 495 vs 404 cr
Pharma Intermediates - 298 vs 463 cr
Notes from previous concalls -
Vizag Greenfield expansion - ground breaking ceremony scheduled for end of Feb 26. Shall be spending 1000 cr over next 3 yrs. This facility shall have dedicated blocks for CM Intermediates, Sweeteners and Pharma Intermediates. First blocks may start to go live in 24 months or so
Mahad Unit - 3 - capex nearing completion. New products like - Contrast Media intermediates and KSMs ( for backward integration purposes ) shall be produced here. Should go commercial wef H2 FY 27. Have spent 145 cr towards completion of this capex
Spending 40 cr towards Hyderabad R&D center - to focus on making/ developing - Peptite intermediates, GLP-1s, Biocatalaysis processes
Notes from Q4 concall -
CM Intermediates reported a bumper 91 pc YoY growth in Q4 led by strong demand for their flagship molecule
Expecting double digit growth to continue in CM Intermediates led by -
Mid single digit growth in existing product ( flagship molecule )
3-4 new product launches
Supply of 1-2 validation batches
NCE intermediate commercialised in FY 25 should continue to see strong off take
Pharma Intermediates /API Segment ā Destocking Behind, Recovery Ahead -
The steep 35% decline was primarily due to destocking by a customer for a cardiovascular drug (Bempedoic Acid intermediate)
āThe worst is behindā ā Management stated destocking is complete, plants are running to optimum capacity, and shipments have resumed
FY27 Guidance: Expect to normalize and grow over the FY25 peak (FY25 PI revenue was ~ā¹460 Cr) - if this happens, stock may just get re-rated upwards !!!
20 active RFPs being tracked, primarily in chronic therapeutic areas (GLP-1, peptide building blocks)
2 opportunities expected to move into commercialization phase during FY27
High-Intensity Sweetener -
Faced pricing pressure from Chinese imports. Company remains opportunistic
One high-volume product under validation ā trial quantities expected to ship over coming quarters
Meaningful pickup in commercial volumes likely only after Vizag comes on-stream ( ie 2 yrs from now )
Capex spending for FY 27 should be around 400 cr - towards Vizag, Mahad and Ambernath expansions. Also adding a new block @ Ambernath - for Pharma and CM Intermediates ( should require 100 cr in capex @ Ambernath )
Have passed an enabling resolution to raise 1000 cr via QIP. Currently have 400 cr of cash on books. Will raise funds only when required
Aiming to clock > 460 cr in Sales in the PI segment ( 460 cr sales in this segment were achieved in FY 25 ). Their discussions with innovator ( iro Bempedoic Acid ) customer gives them this confidence. Also the de-stocking iro this product is behind
Except for the Bempedoic Acidās intermediate - they shall start supplying other new PIs as well wef current FY. But a ramp up in these molecules should take some time. Same for new CM intermediates
Have started supplies of peptide building blocks to large CDMO clients - globally. This business can also scale up meaningfully going forward
Have got 2 lateral entries into their PI pipeline. Here the ramp up should be faster as these r late stage entrants. But these r not for NCEs
Will be in a better position to talk about margins for FY 27 at the end of Q1. IE - only after they the impact of war for 1 full qtr
Mahad expansion ( backward integration ) should first bring in - better GMs + strategic independence. Growth / Rub off on topline growth shall follow later
BlueJet supplies its CM intermediates to global buggies in this space like - Guerbet, Bracco, GE Healthcare. In Q3 FY 27 - Guerbetās formulation plant in US received a US FDAās wx letter. Itās not a injunction ( equivalent of an import alert ). Should not have an immediate impact on BlueJet
At present, the margins in peptide building blocks segment are comparable to companyās consolidated margins. In future, there may be price erosions
Shipments iro Bempedoic Acidās intermediate have started rolling out. One should be able to see that in their Q1 results / their export data
Disc: hold a small position, biased, may add if results r better going forward, not SEBI registered, posted only for educational purposes
4 Likes
Do you have the export data? Also, if anyone can help: How can one get export data? I searched as much as I could, but other than paid services, I did not get anything else
Itās generally behind an expensive paywall. I was just quoting what the management said. I ll try to find out ( via some of my friends and post it if I find it )
I have taken a new position in this one. Was following it as it touched 1000 rs and left it since it was exoensive and I did not dive deep enough. Was concerned with their dependence on Experion back then. AT current prices, the value seems fair and it does seem like the worst is somewhat behind us. The rest of the CDMO space has been on a run and I see a bit of value here.
Plus their new capex that will be catered towards special production for global large players in the contrast as well as API field reminds me of Aether and MTAR which similarly set up capacities for offtake and they have done well for themselves ā¦