Blue jet healthcare is a specialty pharmaceutical and healthcare engine and intermediate company. It operates under a contrast development and manufacturing Organization (CDMO) Business Model.
Why is Blue Jet Healthcare’s Share Price Falling?
Blue jet shares are witnessing strong seling after the company reported a sharp Quarter-On-Quarter (QOQ) Fall in Profit, Profit Margin, Eibitda and Eibitda Margin for Q1Fy26.
After Market Hours on Tuesday, July 22, Blue Jet Healthcare Reported A 17.2 per cent quoq fall in Profit after tax (pat) at 91.2 Crore for Q1fy26. Consequently, pat margin dropped by 664 bps quoq to 25.7 per cent.
Similarly, ebitda declined 13.6 per cent quoq to 121 Crore and ebitda margin shrank by 701 bps to 34.1 per cent.
Revenue from Operations Climbed By 4.2 per cent quoq to 354.8 Crore.
However, the company’s Q1fy26 performance improved on a year-on-yar (yoy) Basis.
Revenue from Operations Jumped 117.8 per cent, pat surgged 141.3 per cent, and pat margin improved 251 bps yoy. Ebitda rose by 173.3 per cent and ebitda margin climbed 693 bps yoy.
“Blue jet healthcare clocked a revenue of 3,548 million, a growth of 117.8 per cent yoy, with ebitda coming in at 1,210 Million. This was primarily driven by the ramp-up in pi and api product categories. The Robust Growth, Coupled With Strong Ebitda Margins, Reflects Our Focus on Operational Efficiency and A Solid Business Foundation, “called Arora, MANAGING DIRERACTOR, BLUE JET HATHCARE.
“Looking ahead, we remain confident in our growth strategy, driven by capacity expansions, enhanced R&D Capability, and a Robust Pipeline of High-Value Products. Long-term value to our stakeholders through consistent performance, innovation, and strategic investments, “Arora said.
Is it time to buy blue jet shares after Q1 Results?
The negative margin reported in q1 seems to have surprised experts. However, some of them expect a revered in the near term.
Brokerage Firm Emkay Global Financial Services, which has maintained a buy call on the stock but trimmed the target price to 1,050 from 1,150 earlier, said while ebitda was beLow estimates, a revision in gross margin is likely in the middle term.
“Ebitda undershot expectations on account of a sharp quoq decline in gross margin. The Gross Margin Weakness Weakness was primarily attributed to a Reduction in inventory Leavels and the Corresponding DIRECT Overheads Hitting The P & L (Nearly 440 BPS IMPACT QOQ), and Partly to a change in the product mix in favor of pharma intermediates (Nearly 210bps impact quoq), “Emkay.
The brokerage firm expects gross margin to 53 per cent in Q2, which is in line with the company’s guidance.
Emkay’s expectation on margin rebound is based on the fact that the company’s gross margin has broadly remained in the 53-56 per cent range over the last three years.
The brokerage firm noted that although the product mix appears weaker compared to historical trends, this should be offset by backwards integration efforts and new launches in the contrast made in intermedies Segment. Moreover, No Major Disruptions in Raw Material Costs are expected.
A Further UPTICK In Utilization in BLUE JET’s dedicated capacity for the bempedoic acid intermediate will remove the key driver of near-term earnings performance, Emkay Said.
The brokerage firm has cut fy26e and fy27e EPS Estimates by Nearly 9 per cent and 4 per cent and 4 per cent, respectively, Moderated its gross margin assumptions.
(This is a development story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are that of individual analysts or broking firms, not mint. We Advise Investors to Consult with certified Experts Before Making Any Investment Decisions, as Market Conditions Can Change Rapidly and Circumstances May Vary.
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