Jubilant Ingrevia Ltd. could be on the cusp of a sharp earnings turnaround, according to Anand Rathi Research, which has reiterated its ‘Buy’ rating on the specialty chemicals company with a sum-of-the-parts target price of ₹975.
Following a plant visit to the company’s Bharuch manufacturing facility, the brokerage said key risks surrounding Jubilant Ingrevia are gradually receding while multiple growth drivers are beginning to align, setting the stage for FY27 to emerge as a significant earnings inflection year.
FY27 Seen as the Turning Point
Anand Rathi expects FY27 to mark a decisive improvement in profitability, with management guiding EBITDA towards the upper end of its ₹750-800 crore target range. This implies operating EBITDA of around ₹760 crore, ahead of the brokerage’s earlier estimate of approximately ₹730 crore and significantly higher than the nearly ₹600 crore reported in FY26.
The brokerage believes the improvement will be supported by stronger contributions from the company’s Specialty Chemicals and Nutrition & Health Solutions (NHS) businesses, along with improving operating leverage.
Bankruptcy Concerns Around Key Customer Ease
One of the biggest overhangs on Jubilant Ingrevia’s growth story has been concerns surrounding the financial health of an innovator customer associated with its Agro CDMO project.
However, Anand Rathi believes these concerns have eased considerably after the innovator completed cash actions worth nearly US$966 million against its US$1 billion deleveraging target for 2026. The brokerage believes this substantially lowers bankruptcy-related risks that had weighed on investor sentiment.
Agro CDMO Plant Commissioned, Revenue Protected
The brokerage noted that Jubilant Ingrevia’s Agro CDMO manufacturing facility has already been commissioned and commercial production has commenced.
Although demand visibility remains subdued in the near term due to weakness in global agricultural markets and pricing pressure on crop protection inputs, the company remains insulated through a five-year take-or-pay agreement. This contractual structure effectively ring-fences EBITDA, providing earnings stability even if customer offtake remains below expectations initially.
Strong CDMO Pipeline Beyond the Anchor Project
Beyond the current agrochemical contract, Jubilant Ingrevia is building a sizeable Contract Development and Manufacturing Organisation (CDMO) pipeline.
According to Anand Rathi, the company is currently evaluating more than 100 molecules, including around 20 confirmed opportunities that together carry a potential revenue opportunity of nearly ₹1,500 crore.
The brokerage expects CDMO revenues to scale to approximately ₹1,200 crore by FY28, making it one of the key long-term growth engines for the company.
Recovery in Acetic Acid Prices Adds Tailwind
Apart from CDMO, Anand Rathi sees multiple operating tailwinds emerging across Jubilant Ingrevia’s portfolio.
The brokerage expects a richer product mix in the Nutrition business, while the recovery in global Acetic Acid prices—from nearly US$300 per tonne to around US$450 per tonne—could further support margins and profitability over the coming quarters.
Specialty Chemicals to Drive Majority of Earnings Growth
Anand Rathi expects Jubilant Ingrevia to deliver a robust 32% earnings CAGR between FY26 and FY28.
Notably, more than 85% of the incremental EBITDA during this period is expected to come from the Specialty Chemicals and Nutrition & Health Solutions businesses, highlighting the company’s ongoing shift towards higher-margin, value-added products.
Investment View
With operational risks moderating, new capacity becoming operational, a protected earnings profile for its Agro CDMO business, and a healthy pipeline of future opportunities, Anand Rathi believes Jubilant Ingrevia is entering a stronger growth cycle.
The brokerage has maintained its ‘Buy’ recommendation on the stock with a target price of ₹975, citing improving earnings visibility, expanding specialty businesses, and multiple margin catalysts that could drive sustained value creation over the next few years.
