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
19 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. 
17 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
3 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.
29 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?
4 Likes