J.B. Chemicals Allots 37.84 Lakh Equity Shares Under Employee Stock Option Scheme

J.B. Chemicals & Pharmaceuticals Limited has successfully allotted 37,84,100 fully paid-up equity shares of Re. 1 each to its employees under the JBCPL Employee Stock Option Scheme, 2021. The Compensation Committee of the Board of Directors approved this allotment on January 21, 2026, marking a significant milestone in the company's employee incentivization program.

Share Allotment Details

The stock option exercise generated substantial funds for the pharmaceutical company, with employees contributing ₹1,83,20,21,971 upon exercising their vested options. This allotment has directly impacted the company's capital structure, increasing the issued, subscribed and paid-up capital from 15,66,50,956 equity shares to 16,04,35,056 equity shares.

Parameter	Details
Shares Allotted	37,84,100
Face Value per Share	Re. 1
Amount Realized	₹1,83,20,21,971
Previous Paid-up Capital	15,66,50,956 shares
Current Paid-up Capital	16,04,35,056 shares

Employee Stock Option Scheme Framework

The JBCPL Employee Stock Option Scheme, 2021, operates under the regulatory framework of SEBI (Share Based Employee Benefits) Regulations, 2021. The scheme covers a total of 61,82,568 shares, with the pricing formula determined by the Compensation Committee. Employees have a 10-year window from the grant date to exercise their options.

ESOP Metrics	Values
Total Shares Covered	61,82,568
Options Vested	39,07,750
Options Exercised	37,84,100
Options Lapsed	4,87,744
Exercise Period	10 years from grant date

Financial Impact and Earnings

The exercise of stock options has resulted in a diluted earnings per share of ₹36.56. The scheme demonstrates strong employee participation, with 37,84,100 options exercised out of 39,07,750 vested options, indicating high confidence among employees in the company's prospects.

Regulatory Compliance

J.B. Chemicals & Pharmaceuticals Limited has fulfilled all disclosure requirements under Regulation 30 of SEBI (Listing Regulations and Disclosure Requirements) Regulations, 2015. The company has informed BSE Limited about this development, ensuring complete transparency with stakeholders and regulatory authorities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.02%	+0.85%	+4.37%	+13.94%	+4.56%	+277.30%

J B Chemicals and Pharmaceuticals has received a buy rating from Prabhudas Lilladher with a target price of ₹2,300 per share, following the company's strong Q3FY26 performance and positive growth outlook.

Q3FY26 Financial Performance

The company delivered robust financial results in Q3FY26, with key metrics aligning with analyst expectations:

Metric	Q3FY26 Performance
Adjusted EBITDA Growth	16.00% YoY
Performance vs Estimates	In line with expectations

Growth Drivers and Strategic Initiatives

Prabhudas Lilladher expects JB Chemicals' growth momentum to continue, supported by multiple strategic drivers:

Geographical expansion of legacy brands into new markets
Improvement in medical representative productivity through enhanced sales strategies
Scale up of acquired brands to maximize portfolio value
Launch of new products and therapies to diversify revenue streams
Scaling up contract manufacturing business for additional revenue growth
Strong free cash flow generation supporting business expansion

Corporate Developments and Timeline

The management has provided clarity on key corporate transactions and expected timelines:

Development	Timeline
Torrent Pharma Transaction Completion	Q4FY26 end
Merger Completion Post-Transaction	6-9 months
Margin Improvement Timeline	Beyond FY27E

Financial Projections and Valuation

The brokerage has made minor adjustments to its earnings projections while maintaining a positive outlook:

Parameter	Details
FY27E/28E EPS Revision	Reduced marginally by 2-3%
Expected EPS CAGR (FY25-28E)	~22.00%
Current Trading Multiple	25x FY28E EPS
Target Valuation Multiple	30x FY28E EPS
Target Price	₹2,300 per share

Margin Improvement Outlook

The research firm anticipates significant margin expansion beyond FY27E, driven by the grant of perpetual license for the acquired ophthalmic portfolio. This development is expected to enhance the company's profitability profile and strengthen its competitive position in the pharmaceutical sector.

Prabhudas Lilladher maintains its buy recommendation, citing the company's strong fundamentals, diversified growth strategy, and attractive valuation at current market price relative to the target price of ₹2,300 per share.