Ajanta Pharma vs Aditya Birla Sun Q4 FY26

AJ

Ajanta Pharma

Q4 FY26 · Healthcare

Ajanta Pharma delivered a strong Q4 FY26 with revenue of ₹1,422 crore (+21% YoY) and PAT of ₹267 crore (+18% YoY). Full-year revenue surpassed ₹5,000 crore for the first time, driven by stellar US generics growth (+56% YoY in Q4) and robust India branded business (+14% FY26). EBITDA margin at 23% was impacted by mark-to-market forex losses of ₹42 crore; adjusted margins remain healthy. Management guided for FY27 revenue growth of 16-18% and EBITDA margin of 27% ±1%, factoring in Middle East supply chain disruptions and higher freight costs. Key growth drivers include high double-digit growth in Asia and Africa branded generics, mid-single-digit US growth, and continued India outperformance. Risk: Prolonged Middle East conflict could further inflate logistics costs and pressure margins.

Guidance read

Revenue growth 16-18% for FY27: Overall company revenue expected to grow 16-18% in FY27, driven by high double-digit growth in Asia and Africa branded generics, mid-single-digit US growth, and India outperformance. EBITDA margin ~27% ±1% for FY27: Management guided EBITDA margin of 27% with a variation of plus/minus 1%, factoring in investments, higher freight costs, and R&D spending. Capex of ~₹400 crore in FY27: Capital expenditure expected to increase to around ₹400 crore, including ₹150 crore maintenance and ₹250 crore for capacity expansion. Effective tax rate ~26-26.5% in FY27: Tax rate expected to increase as one manufacturing facility transitions out of exemption period.

Risk read

Key risks include Middle East supply chain disruption — Geopolitical tensions have increased freight costs and transit times; if prolonged, could impact Asia business recovery and margins.; US FDA observations at Paithan plant — Five observations received; while management expects no immediate impact, any escalation could affect filings or existing product supplies.; Price erosion in US generics and Africa institutional — Both markets are tender-driven and competitive; management factors erosion into guidance but unexpected acceleration could pressure margins.; Promoter share pledging by non-executive brothers — Two promoter brothers have increased borrowing against shares for their own businesses, though no pledge on Ajanta shares; could raise governance concerns..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Aditya Birla Sun Life AMC reported Q4 FY26 revenue of ₹458 crore (+6.8% YoY), but EBITDA fell to ₹222 crore (-4.7% YoY) and PAT dropped to ₹181 crore (-20.6% YoY) due to mark-to-market losses on other income. The mutual fund quarterly average AUM grew 14% YoY to ₹4.36 lakh crore, with equity AUM up 17% to ₹1.90 lakh crore. SIP book stood at ₹76 crore, and new SIP registrations rose 16% QoQ to ~6 lakh. The company won an EPFO equity mandate and is expanding its GIFT City subsidiary. Management expects the regulatory impact from the 5 bps total expense ratio cut to be largely neutral through cost optimization. Key risk: sustained market volatility could pressure AUM growth and flows.

Guidance read

Regulatory impact neutralization: Management expects to offset the 5 bps total expense ratio cut through cost optimization and distributor commission adjustments, aiming for a neutral impact on profitability. ESOP expense increase of ₹8-10 crore per quarter: Employee stock option expenses will increase by approximately ₹8-10 crore per quarter in FY27 due to a new employee scheme launched in Q4. Launch of ABSL Global Emerging Market Fund via GIFT City: Plans to launch an open-ended global emerging market fund through the GIFT City subsidiary, targeting offshore investors.

Risk read

Key risks include Market volatility impacting AUM and flows — Persistent equity market volatility and FII outflows could pressure AUM growth and lead to higher SIP cancellations, as seen in Q4.; Regulatory impact on margins — The 5 bps total expense ratio cut effective April 2026 could compress margins if cost optimization measures fall short.; SIP cancellation rate increase — SIP cancellations rose during the volatile quarter, and if sustained, could slow AUM growth despite strong new registrations..

Promise ledger

Scorecard data is being built as historical quarters are processed.