Blue Jet Healthcare's stock surged as much as 8.34% to ₹521.55 in early trading on Tuesday, May 26, following the release of its Q4FY26 results. According to reports from Business Standard, the stock was quoted at ₹517.30 at 10:07 AM, representing a 7.46% increase from its previous close. The strong market response reflects investor interest in the pharmaceutical company's quarterly performance and future growth prospects.
As reported by Business Standard, Blue Jet Healthcare's Q4FY26 revenue declined 31% year-on-year primarily due to lower sales in the pharma intermediates (PI) segment and order phasing. However, revenue showed 22% sequential growth, indicating a recovery in business momentum. Profit after tax fell 42% year-on-year but increased 60% quarter-on-quarter, reflecting improved operating performance. Earnings before interest, tax, depreciation, and amortisation (Ebitda) declined 49% year-on-year but rose 52% quarter-on-quarter, supported by better margins and stronger activity in core segments. According to GuruFocus, the company reported a 22% increase in Q4 revenue on a quarter-over-quarter basis, driven by strong performance in the Contrast Media segment.
According to Business Standard, Emkay Global retained its 'Reduce' rating with a target price of ₹450, citing limited upside potential amid continued volatility in contrast media intermediates (CMI) and pharma intermediates (PI) segments. The brokerage noted that Q4FY26 Ebitda came in around 20% above estimates despite negligible pharma intermediates sales during the quarter. In contrast, Motilal Oswal Financial Services maintained its 'Buy' stance with a target price of ₹580, valuing the stock at 30x FY28E EPS, expecting recovery in pharma intermediates and sustained strength in contrast media. As per GuruFocus, the PI/API category saw a significant 35% decline in revenue for FY26, primarily due to customer destocking, while the artificial sweeteners segment faced pricing pressure from imports, leading to a 2% decline in revenue compared to FY25.
According to GuruFocus, Blue Jet Healthcare is in a strong financial position, being debt-free and ending FY26 with liquid financial assets of ₹400 crores, indicating robust financial health. The company has commenced its Vizag greenfield expansion project, which is expected to be a significant long-term growth platform. Management outlined an aggressive capex roadmap including ₹1,000 crore for the Vizag project, ₹40 crore for a Hyderabad R&D centre expected by September 2026, and around ₹400 crore in FY27 focused on peptides and GLP-1 development. The PI segment is showing signs of recovery with improved order visibility and shipment trends, suggesting potential growth in FY27, though logistics costs are expected to increase in FY27 which could impact overall profitability.
