Blue Jet Healthcare -
Q1 FY 26 results and concall highlights -
Revenues - 353 vs 161 cr, up 119 pc ( revenues in Q4 FY 25 were @ 340 cr ). Revenues in Q4 FY 25 were @ 340 cr
Gross margins @ 48 vs 54 pc ( gross margins in Q4 FY 25 were @ 55 pc )
EBITDA - 121 vs 45 cr, up 173 pc ( margins @ 34 vs 27 pc ). EBITDA in Q4 FY 25 was @ 140 cr with 41 pc margins
PAT - 91 vs 38 cr, up 141 pc ( PAT margins @ 25.7 vs 23.2 pc ). PAT in Q4 FY 25 was @ 110 cr
Segmental Breakup of Q1 sales -
Contrast media intermediates - 97 vs 64 cr
High intensity sweeteners - 35 vs 35 cr
Pharma intermediates and APIs - 212 vs 60 cr
Others ( spent oils & industrial solvents ) - 10 vs 2 cr
Segmental revenue CAGR over last 4 yrs -
Contrast media intermediates - 3.4 pc
High intensity sweeteners - 7.8 pc
Pharma intermediates and APIs - 82 pc
Overall company level revenue CAGR for last 4 yrs @ 26 pc
Cash on books @ 248 cr
Company’s total reactor capacity @ 1178 KL ( across its 3 facilities ) with a portfolio of 51 commercialised products - 19 contrast media products, 4 high intensity sweeteners and 28 Pharma grade products
BlueJet supplies contrast media intermediates to 3 of the world’s largest contrast media players. The relationship of company with its clients is very sticky as the supplies require strict control over impurities and specific product profiles. Company now aims to forward integrate into more advanced contrast media intermediates in order to realise better sales and profitability by moving up the value
Seeing good traction in new contrast media intermediates - company hopes that H2 should be much better than H1 for their contrast media business
Company’s high intensity sweeteners plant in US FDA compliant. Company offers sweeteners to aprox 300 customers globally. Target industries include - Oral care products, table top sweeteners, soft drinks, confectionary products, Pharma products, food supplements, animal feed
Company makes Pharma intermediates and API in 3 key therapies - Cardiovascular, CNS, Oncology. Company’s clients include 40 multinationals across India, EU, North America and Asia
Company is currently supplying advanced intermediates for 4 APIs that are currently under patent. One is an Onco API, another one is a CNS API and 02 are Cardiovascular APIs
Seeing good traction in new contrast media intermediates - company hopes that H2 should be much better than H1 for their contrast media business
The Cardiovascular intermediate that the company supplies for the on patent molecule is seeing strong demand as the end molecule is growing rapidly in Developed markets
Company’s new plant in Mahad ( expected to go commercial in H2 ) - focussing on Contrast media intermediates and KSMs shall position them very strongly in this space
Seeing increased enquiries in their CDMO business. Given the interest that they are seeing in this segment, they are advancing with a plan to build a multipurpose plant at Mahad and a state-of-the-art R&D center at Hyderabad. The GMP compliant plant shall have a 30 reactor capacity and will be a versatile plant with capability to supply from a few kilos to multi-tons to their CDMO clients in any geography. This plant should go live in H2 FY 27 and should entail a capex of aprox 300 cr ( this capex includes aprox 100 cr already spent towards the contrast media plant as mentioned above ). Company is also building a state of the art R&D plant at Hyderabad focussing on newer chemistry platforms like peptides, intermediates for GLP-1s, biocatalaysis
Company is tracking about 20 new opportunities with high client interest and visibility. About 30% of these, which is approximately six, are in late phase III or commercial phase
Additionally, company aims to add another 1000 KL reactor capacity in next 2-3 yrs in order to emerge as a globally competitive CDMO. Company intends to acquire a land parcel for the same and build 4 manufacturing blocks on the same - 2 for CM products, 01 for HI sweeteners and 01 as a multi purpose block ( mainly catering to Pharma intermediates )
In Q4 LY, there was an inventory buildup of aprox 75 cr which got liquidated in Q1. This inventory build up led to better cost absorption in Q4 and hence there is a QoQ GM drop that’s visible in company’s results
New CM intermediates - based on Iodine and Gadolinium are expected to go commercial in Q2 - should support the contrast media vertical in Q2
Company believes, they should be able to sustain > 50 pc GM wef Q2 ( closer to 52-53 pc )
Company has a good estimate of the expected demand coming their way and that’s why they are going in for the aggressive capex as mentioned above ( conjecture : they seem to be anticipating very strong demand in contrast media segment in addition to Pharma intermediates )
Company aspires to clock 500 cr kind of sales in CM division in FY 26. This should be their new base for this division from where they intend to keep growing
In a recent media interview, CEO guided for a 15-20 kind of growth for FY 26 ( although they refused to give guidance on the concall )
Disc: initiated an investment position, not SEBI registered, not a buy/sell recommendation, posted only for informational purposes
. This is problem for a value investor.
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