Jubilant Pharmova disclosed receipt of a show cause notice from the Joint Commissioner of Central Goods and Services Tax (CGST) in Roorkee, proposing a total financial demand of ₹105.5 crore. The notice, issued on August 27, 2026, targets the company’s wholly-owned subsidiary, Jubilant Generics Limited.

The tax authority alleges that Jubilant Generics inadmissibly claimed Integrated GST (IGST) refunds under Rule 96 while simultaneously availing benefits under the Advance Authorisation scheme. This action is cited as a violation of Rule 96(10) of the CGST Rules, 2017, covering the financial years 2020-21 and 2021-22.

Breakdown of Proposed Demand

The show cause notice proposes specific monetary penalties alongside the principal tax demand. The interest component remains unquantified at this stage.

Company Response

Jubilant Pharmova stated that the notice is factually and legally incorrect. The company claims the authority issued the notice without properly verifying facts or examining the issue. Management asserts it has a strong case on its merits.

The company plans to file a detailed reply before the Joint Commissioner, CGST Division, Roorkee, to contest the demand. Consequently, Jubilant Pharmova expects no material financial or operational impact from this development.

Jubilant Pharmova Limited shareholders approved all resolutions at the 48th Annual General Meeting held on August 26, 2026. The assembly endorsed a dividend of ₹5 per equity share and reappointed directors Hari Shanker Bhartia and Arjun Shanker Bhartia.

The meeting, conducted via video conferencing, saw participation from 86 members representing over 70 million shares. Chairman Shyam Sunder Bhartia presided over the proceedings, highlighting the company's financial performance and strategic progress toward Vision 2030.

Financial Performance in FY26

Consolidated revenue from operations rose 14% to ₹83 billion in FY26. EBITDA increased 8% to ₹13 billion, while normalised profit after tax grew 7% to ₹4 billion. The net debt-to-EBITDA ratio moved from 1.1x to 1.3x, reflecting growth-oriented capital expenditure.

Segment Highlights

The Radiopharmaceuticals business maintained leadership in SPECT imaging and expanded its Ruby-Fill® installed base, delivering EBITDA margins of 41%. The Allergy Immunotherapy segment reported EBITDA margins of 35%.

CDMO Sterile Injectables revenue surged 38%, driven by the launch of Line 3 at the Spokane facility. CRDMO revenue grew 15%, while the Generics business saw a significant profitability improvement with EBITDA rising 250% despite a 13% revenue increase.

Q1FY27 Outlook

Revenue for the first quarter of FY27 increased 17% year-on-year to approximately ₹22 billion. EBITDA stood at ₹2.7 billion. Management noted that profitability was impacted by temporary unavailability of high-margin SPECT products and remediation costs at the Montreal facility. Production is expected to normalise in the second half of FY27.

What the Numbers Show

The divergence between CDMO Sterile Injectables revenue growth (38%) and consolidated EBITDA growth (8%) indicates that while top-line expansion was robust, margin accretion from new capacity ramp-ups like Line 3 may still be in early stages or offset by costs elsewhere. Conversely, the Generics business demonstrated strong operating leverage, with EBITDA growing 250% against only 13% revenue growth, suggesting successful cost optimization or product mix shifts.

Voting Results

All ordinary resolutions were passed with requisite majorities. Promoter group voting support remained near-universal across all agenda items. Public institutional dissent was minimal, with less than 2% negative votes on director reappointments.