Synopsis:
Blue Jet Healthcare hit a 10% lower circuit after weak Q1 FY26 sequential results. While revenue rose 4.4% QoQ, net profit fell 17.3% and margins contracted. YoY growth remained strong.
One of India’s specialty pharmaceutical and healthcare ingredient companies was in sharp focus today after the company reported a weak sequential performance in its Q1 FY26 results. The stock reacted sharply, hitting the 10 percent lower circuit as investors expressed concerns over the quarter’s profitability.
The company in focus is Blue Jet Healthcare Ltd, with a market capitalization of Rs. 15,719 crore. The stock opened at Rs. 1,015 compared to its previous close of Rs. 1,006.80 and hit a low of Rs. 906.15, marking a drop of approximately 10 percent and triggering the lower circuit.
What’s the News?
Blue Jet Healthcare declared its Q1 FY26 results, posting mixed performance trends. While the company showed strong year-on-year growth across key metrics, the sequential numbers reflected a decline in profitability.
On a Quarter-on-Quarter basis, the company’s revenue from operations grew by 4.4 percent from Rs. 340 crore in March 2025 to Rs. 355 crore in June 2025. However, operating profit declined by 13.6 percent from Rs. 140 crore to Rs. 121 crore. Profit before tax also fell by 16.3 percent, from Rs. 147 crore to Rs. 123 crore, while net profit dropped by 17.3 percent from Rs. 110 crore to Rs. 91 crore. Margins also came under pressure, with the EBITDA margin declining from 41.1 percent to 34.1 percent and the PAT margin decreasing from 32.3 percent to 25.7 percent.
On a Year-on-Year basis, the company’s performance remained strong. Revenue from operations surged by 117.8 percent from Rs. 163 crore in June 2024 to Rs. 355 crore in June 2025. Operating profit increased by 175 percent from Rs. 44 crore to Rs. 121 crore, while profit before tax rose by 151 percent from Rs. 49 crore to Rs. 123 crore. Net profit also recorded a sharp rise of 139.5 percent from Rs. 38 crore to Rs. 91 crore.
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Comments from the Management
Mr. Shiven Arora, Managing Director, Blue Jet Healthcare Limited, said: “Blue Jet Healthcare clocked a revenue of Rs. 354 crore, a growth of 117.8% YoY with EBITDA coming in at Rs. 121 crore. This was primarily driven by the ramp up in PI & API product categories. The robust growth, coupled with strong EBITDA margins, reflects our focus on operational efficiency and a solid business foundation.
Looking ahead, we remain confident in our growth strategy, driven by capacity expansions, enhanced R&D capabilities, and a robust pipeline of high-value products. We are committed to delivering long-term value to our stakeholders through consistent performance, innovation, and strategic investments.”
According to the management, the quarter-on-quarter reduction was primarily due to a drop in gross margin to 48.4 percent in Q1 FY26 from 54.7 percent in Q4 FY25. This was driven by a shift in product mix and reduced inventory levels, leading to lower overhead absorption during the quarter.
About the Company
Blue Jet Healthcare Ltd is a specialty pharmaceutical and healthcare ingredient company operating under a contract development and manufacturing organization (CDMO) model. The company specializes in contrast media intermediates and high-intensity sweeteners.
It supplies critical intermediates to three of the world’s largest contrast media manufacturers, including GE Healthcare, Guerbet, and Bracco. In the sweeteners space, the company supplies to multinational brands like Colgate Palmolive (India) and Unilever. Blue Jet’s long-term customer relationships are supported by multi-year contracts, ensuring consistent demand for its niche products.
Written by – Manan Gangwar
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