Blue Jet Healthcare Limited has received a CARE A1+ Stable/CARE A1+ credit rating from CARE Ratings Limited for its bank facilities worth ₹275.00 crore. The company announced this development through a regulatory filing under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

CARE Ratings has assigned the following rating to Blue Jet Healthcare Limited:

The rating assignment reflects the company's strong financial profile and established market position in the pharmaceutical intermediates sector.

Key Rating Strengths

The rating derives strength from several factors including the company's established operational track record spanning over five decades in contrast media, high-intensity sweeteners, and pharmaceutical intermediates. Blue Jet Healthcare operates through two sites with eight manufacturing blocks accredited by global regulatory bodies including ISO, WHO-GMP, SMETA, and FSSAI.

Financial Performance Highlights

The company demonstrated strong financial performance in recent years:

The improvement in profitability margins is primarily attributed to the addition of CDMO services for global innovators, particularly in Bempedoic Acid intermediates used for cholesterol management.

Business Profile and Market Position

Blue Jet Healthcare has established itself as a leading Indian manufacturer of contrast media intermediates with a portfolio of 20 commercialized molecules used across MRI, CT, and X-ray diagnostics. The company exports to 50+ countries and derives 87% of its revenue from international markets, maintaining customer relationships ranging from 4 to 26 years.

Product Portfolio Diversification

Rating Constraints and Risk Factors

Despite the positive rating, CARE Ratings highlighted several constraints including high customer and product concentration, with 79% of revenue contributed by top 5 customers in FY25. The company's working capital-intensive operations show gross current asset days of 333 days in FY25, driven by longer export receivables of 92 days and inventory holding requirements of 114 days.

Capital Expansion Plans

Blue Jet Healthcare has outlined a capital expenditure plan of ₹1,300 crore over the next 3-4 years for capacity expansion, product development, backward integration, and establishing an R&D centre. The execution and stabilization risks associated with these expansion plans remain key rating sensitivities.

Financial Risk Profile

The company maintains a comfortable capital structure with overall gearing of 0.02x as of March 31, 2025, compared to nil as of March 31, 2024. CARE Ratings noted the company's strong liquidity position with liquid investments of ₹269.81 crore, including cash and bank balances of ₹98.12 crore and debt mutual funds of ₹171.69 crore.

Outlook and Rating Sensitivities

The stable outlook reflects CARE Ratings' expectation that Blue Jet Healthcare will maintain its established market position supported by its diversified product portfolio and long-term customer relationships. Positive rating factors include significant growth in scale of operations above ₹1,700 crore while maintaining current profitability levels, while negative factors include non-renewal of long-term contracts leading to decline in TOI below ₹800 crore or significant moderation in operating profitability.

Blue Jet Healthcare , a leading pharmaceutical company, has reported mixed financial results for the second quarter and first half of fiscal year 2026. While the company experienced a decline in revenue, it maintained strong margins and showed growth in profitability.

Financial Highlights

Despite a 21% year-on-year decrease in Q2 revenue, Blue Jet Healthcare demonstrated resilience with a 14% increase in EBITDA and maintained a robust EBITDA margin of 36.00%.

Segment Performance

Contrast Media

The Contrast Media business recorded revenues of ₹81.00 crores in Q2, down 17% quarter-on-quarter. However, H1 revenues remained consistent with the previous year at ₹178.00 crores. The company cited increased transit times, from 35-40 days to 60 days, due to geopolitical reasons as a factor affecting revenue recognition.

Pharma Intermediates and API

This segment reported Q2 revenue of ₹42.00 crores, down 80% quarter-on-quarter. However, H1 revenue showed impressive growth, increasing by 113% year-on-year to ₹255.00 crores.

Operational Updates

Blue Jet Healthcare has commenced groundwork on its 103-acre Vizag site, with Phase-I targeting capacity for contrast media and artificial sweeteners. The company's Mahad backward integration facility remains on track for commissioning by H2 FY26.

Financial Position

The company maintains a debt-free status with a robust cash position of ₹341.00 crores, demonstrating strong financial health and the ability to fund future growth initiatives.

Management Commentary

During the earnings call, Managing Director Shiven Arora stated, "Our strategic priorities, portfolio diversifications, capacity-led growth, and disciplined execution continue to deliver tangible results, despite transient fluctuation in quarterly revenues."

Future Outlook

Blue Jet Healthcare remains optimistic about its growth prospects, particularly in the Contrast Media and Pharma Intermediates segments. The company is tracking multiple RFPs, including high-conviction Phase-III leads in the chronic space, indicating potential for future growth.

While the company faces short-term challenges such as extended transit times and inventory destocking, management remains confident in the long-term growth trajectory, supported by capacity expansions and a strong order book.

Investors and analysts will be closely watching Blue Jet Healthcare's performance in the coming quarters, particularly the ramp-up of new capacities and the commercialization of new products in the pipeline.