J B Chemicals' Q4 profit drops 30.42% as margin slides
Consolidated revenue fell 15.07% sequentially, while negative other income equal to -11.29% of pre-tax profit further pressured earnings.
Filed 13 Jul 2026, 17:41 IST · after market close · J B Chemicals & Pharmaceuticals Ltd (JBCHEPHARM)
Key takeaways
- Consolidated net profit fell 30.42% YoY to Rs 101.37 cr as revenue declined 4.77% and operating profit fell 11.18%.
- Operating margin narrowed 1.61 percentage points YoY to 22.24% because expenses declined less than revenue, and it fell 5.54 percentage points QoQ.
- The stock fell 3.35% on the results reaction day, well beyond its 1.11% median absolute move across eight previous result reactions.
Price around the results
Revenue contraction drove a sharper sequential earnings decline
Consolidated revenue declined 4.77% YoY, but operating profit fell 11.18%, showing that the contraction was not absorbed evenly through the cost base. The sequential deterioration was steeper: revenue fell 15.07% and net profit dropped 48.77% to Rs 101.37 cr. Negative other income of Rs 15.2 cr also weighed on pre-tax profit, accounting for -11.29% of it.
Cost rigidity and depreciation pressured Q4 margins
Expenses fell 2.76% YoY against the 4.77% revenue decline, so costs grew faster than revenue and operating margin narrowed 1.61 percentage points. Sequentially, expenses fell 8.56% while revenue fell 15.07%, taking margin down 5.54 percentage points. Depreciation increased 7.69% YoY and 10.28% QoQ, while the tax rate was broadly stable YoY at a change of 0.22 percentage points.
Margin has now declined for two straight quarters
Operating margin fell from 28.54% in Q2FY26 to 27.78% in Q3FY26 and 22.24% in Q4FY26, marking a second consecutive quarterly decline. Among 48 Healthcare peers that had reported, the company's margin was 1.14 percentage points below the 23.38% sector median.
The market reaction was unusually negative for this stock
The stock fell 3.35% on the reaction day and was down 5.20% after one session, with the move also lagging the market by 1.51 percentage points on day zero. Across eight previous result reactions, the stock moved up three times and down five times, but the latest day-zero decline was larger than its 1.11% median absolute move; it was down 1.70% after five sessions and up 1.08% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹904 cr | ₹1,065 cr | -15.07% | -4.77% |
| Other income | ₹-15 cr | ₹18 cr | — | — |
| Expenses | ₹703 cr | ₹769 cr | -8.56% | -2.76% |
| Operating profit | ₹201 cr | ₹296 cr | -32.01% | -11.18% |
| Operating margin (%) | 22.24% | 27.78% | — | — |
| Interest | ₹1 cr | ₹2 cr | -34.57% | -15.17% |
| Depreciation | ₹50 cr | ₹45 cr | +10.28% | +7.69% |
| Profit before tax | ₹135 cr | ₹267 cr | -49.53% | -30.22% |
| Tax | ₹33 cr | ₹69 cr | -51.70% | -29.62% |
| Net profit | ₹101 cr | ₹198 cr | -48.77% | -30.42% |
| EPS (₹) | ₹6.35 | ₹12.63 | -49.72% | -32.16% |
Operating margin of 22.24% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.35% | -1.51% |
| Next session | -5.20% | — |
| 5 sessions | -1.70% | -0.87% |
| 15 sessions | -3.13% | — |
| 30 sessions | +1.08% | — |
Volume on the results session was 2.43× its 20-day average.
What to watch
- Whether operating margin holds above 22.24% after the 5.54-percentage-point sequential decline.
- Whether revenue recovers from the 15.07% QoQ contraction.
- Whether other income returns from negative Rs 15.2 cr, which represented -11.29% of pre-tax profit.