Ingrevia Stock Price Target Cut to Rs 647 by Prabhudas Lilladher

Jubilant Ingrevia Reports Strong Q4FY26 Performance

Jubilant Ingrevia, a leading chemical company, has reported consolidated revenue of Rs11.8 billion in Q4FY26, in line with Prabhudas Lilladher's estimates. The company's performance was driven by growth in various segments.

The Chemical Intermediates segment recorded a 10% quarter-over-quarter (QoQ) growth and a 15% year-over-year (YoY) growth, primarily due to higher acetic acid prices following supply disruptions in the Middle East. Acetic Anhydride volumes showed an increase YoY, while remaining stable sequentially.

In contrast, the Nutrition & Health Solutions segment reported a 15% QoQ growth and a 21% YoY growth, supported by double-digit QoQ and YoY volume growth, led by Niacinamide. The Specialty Chemicals segment also saw revenue growth, driven by a recovery in volumes across business lines, with Fine Chemicals and Agro Chemicals leading the overall growth. However, Pyridine and Picoline prices continued to face pressure due to competitive intensity from Chinese suppliers.

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The company has also commenced deliveries under its USD300mn agrochemical CDMO contract during Q4FY26. Prabhudas Lilladher expects the Specialty Chemicals segment to remain the key growth driver, supported by the ramp-up of the agrochemical CDMO contract.

However, headwinds in the Chemical Intermediates segment are likely to remain a near-term challenge. At the current market price, the stock trades at an implied valuation of 27x FY28 EPS. Prabhudas Lilladher has downgraded the rating to REDUCE with a target price of Rs647, based on the company's SOTP valuation methodology.