How has been the historical performance of Jubilant Pharmo?

Revenue and Profitability Trends

Jubilant Pharmo’s net sales have shown a recovery trajectory after a notable dip in 2019. From ₹9,110.82 crores in March 2019, sales declined sharply but then steadily increased to ₹7,234.50 crores by March 2025. This rebound reflects the company’s ability to regain market traction despite earlier challenges. Operating profit margins, excluding other income, peaked at 26.49% in 2020 but experienced a decline to 16.32% by 2025, indicating some margin pressure amid rising costs.

Profit after tax (PAT) has been more volatile, with a significant loss recorded in 2023 (negative ₹77.13 crores), followed by a strong recovery to ₹836.80 crores in 2025. The PAT margin mirrored this trend, dropping to -1.04% in 2023 before rebounding to 11.63% in 2025. Earnings per share (EPS) followed a similar pattern, with a negative EPS in 2023 and a robust ₹53.13 in 2025, underscoring the company’s turnaround in profitability.

Cost Structure and Expenditure

The company’s total expenditure excluding depreciation rose from ₹4,427.84 crores in 2020 to ₹6,060.80 crores in 2025, reflecting increased raw material costs and employee expenses. Raw material costs, a significant component, increased from ₹1,438.02 crores in 2020 to ₹1,985.30 crores in 2025, while employee costs rose steadily to ₹2,267.90 crores in 2025. Other expenses also increased, indicating higher operational costs. Despite these pressures, Jubilant Pharmo managed to maintain a positive operating profit, aided by other income contributions.

Balance Sheet and Asset Management

On the balance sheet front, shareholder’s funds grew from ₹4,741.49 crores in 2021 to ₹6,254.90 crores in 2025, signalling strengthening equity base. The company’s total liabilities increased to ₹12,499 crores in 2025 from ₹8,763.40 crores in 2021, with long-term borrowings reducing from ₹3,739.69 crores in 2020 to ₹2,150.30 crores in 2025, indicating some deleveraging. Capital work in progress surged significantly to ₹2,714.70 crores in 2025, suggesting ongoing investments in capacity expansion or new projects.

Net block assets remained relatively stable around ₹4,800 crores, while total assets increased steadily, reflecting the company’s asset growth and investment activities. Cash and bank balances improved to ₹1,088.80 crores in 2025, supporting liquidity.

Cash Flow and Financial Health

Jubilant Pharmo’s cash flow from operating activities has generally been positive, rising from ₹1,542 crores in 2020 to ₹1,072 crores in 2025, despite some fluctuations. Cash flow from investing activities was negative in most years, reflecting ongoing capital expenditure and investments. Financing activities showed net outflows, particularly in 2025 with ₹1,452 crores, indicating debt repayments or dividend payments. The company’s net cash inflow was ₹131 crores in 2025, a positive sign after a negative outflow in 2024.

Overall, the company has demonstrated resilience in managing its liquidity and funding requirements while investing in growth opportunities.

Summary of Historical Performance

Jubilant Pharmo’s historical performance reveals a company that has navigated through periods of volatility with a focus on recovery and growth. Revenue and profitability have rebounded strongly after a dip in 2023, supported by disciplined cost management and strategic investments. The balance sheet shows a strengthening equity position and controlled leverage, while cash flow trends indicate prudent financial management. Investors should note the company’s capacity expansion efforts and improving margins as positive indicators for future performance.

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