Motilal Oswal has joined the bullish sentiment on Blue Jet Healthcare with a Buy rating and target price of ₹710, as reported in its research report dated August 03, 2026. The brokerage expects a CAGR of 19%/28%/25% in revenue/EBITDA/PAT over FY26-28 and values the stock at 34x FY28E EPS. This adds to ICICI Securities' earlier Buy rating with a target price of ₹680, significantly higher than its previous target of ₹600, highlighting strong analyst confidence in the company's future prospects despite current quarter challenges.
The company's revenue from operations declined 17.4% year-on-year to ₹293.11 crore for the quarter ended June 30, 2026, down from ₹354.76 crore in the corresponding period last year. According to Motilal Oswal's analysis, the decline was primarily driven by pharma intermediate (PI) revenue falling 43% YoY due to high base effect, which represents approximately 41% of total sales. However, this was partially offset by healthy 19% YoY growth in contrast media (40% of total sales) and 14% YoY growth in high-intensity sweeteners (14% of total sales). The PI segment delivered an encouraging start to FY27, with sequential improvement driven by normalization of customer inventory levels.
Net profit declined 14.16% to ₹78.26 crore for the quarter ended June 30, 2026, compared with ₹91.17 crore in the corresponding period last year. According to Business Standard, this profit decline indicates the company's inability to maintain profitability levels despite operational challenges during the quarter. The significant rise in other income to ₹152 million from ₹83 million in the prior period suggests non-operational gains contributed meaningfully to the bottom line, highlighting a dependency on non-core earnings to cushion operational headwinds. Despite the double-digit decline in both top-line and bottom-line metrics, cost discipline helped the company keep its operating margin stable, with EBITDA margin contracting by less than 1%.
Operating performance also weakened during the quarter, with EBITDA declining 18.9% to ₹98 crore from ₹121 crore in the year-ago period. As reported by Business Standard, the company's EBITDA margin narrowed to 33.4% from 34.1% in the corresponding quarter of the previous financial year, indicating reduced operational efficiency and profitability margins during the quarter. Total expenses fell by only 15.7% to ₹1,950 million compared to the sharper revenue decline, with employee benefits expenses rising to ₹201 million from ₹174 million while other expenses decreased to ₹378 million from ₹334 million. The company's balance sheet remains strong following its recent ₹800 crore capital raise completed in July 2026, positioning it well for future expansion despite current operational challenges.
The board approved the reappointment of Akshay B Arora as whole-time director and executive chairman for another five years, from April 13, 2027, to April 12, 2032, and the reappointment of Shiven Akshay Arora as managing director for a further five-year term, from April 13, 2027, to April 12, 2032. The company has also declared a dividend of ₹1.20 per equity share, representing 60% of the face value of ₹2 per fully paid-up share, with September 14, 2026, as the record date. Blue Jet Healthcare is planning significant expansion with ₹10 billion investment in Vizag over 24-30 months for a greenfield plant to expand its chemistry base and aims to commercialise the Mahad facility with backward integration for contrast media in FY27. Despite the weak quarter, the company continues to invest in high-growth areas, being one of India's leading manufacturers of contrast media intermediates used in medical imaging and expanding its Contract Development and Manufacturing Organisation (CDMO) business.
