Ajanta Pharma vs Artemis Medicare Services 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.

Artemis Medicare delivered a strong Q4 FY26 with consolidated revenue of INR 279 crore (+16.4% YoY) and PAT of INR 30 crore (+32.1% YoY), driven by higher patient volumes in high-margin specialties and improved case mix. EBITDA margin expanded to 21.3% as operational efficiencies and cost management offset input pressures. The Gurugram flagship saw occupancy of 64.6% and ARPOB of INR 84,571 (+7.3% YoY). International patient revenue grew 26.9% for the full year, with recovery from a March dip. The Raipur 300-bed hospital is on track for Q1 FY27 commissioning, with guided losses of INR 18-20 crore in the first year. The company targets 2,000 beds by 2029, supported by a INR 700 crore fundraising plan. Key risk: potential margin dilution from Raipur ramp-up and regulatory uncertainties around medical device pricing caps.

Guidance read

Raipur hospital to commence operations in Q1 FY27: 300-bed super-specialty hospital in Raipur will start in Q1 FY27; first phase of 150 beds operational, remaining 150 within 3-4 months. Raipur to incur INR 18-20 crore losses in first year: Management guided for losses of INR 18-20 crore in FY27 from Raipur, with break-even expected in 18 months. Gurugram EBITDA margin to exceed 20%: Gurugram facility expected to deliver EBITDA margin north of 20% in coming years, driven by case mix, cost efficiencies, and corporate cost dilution. Fundraising of up to INR 700 crore for new projects: Board approved fundraising up to INR 700 crore to fund new brownfield/greenfield projects beyond announced ones.

Risk read

Key risks include Raipur ramp-up losses and margin dilution — Raipur hospital expected to incur INR 18-20 crore losses in FY27, potentially dragging consolidated EBITDA margin by 1-1.5%.; Regulatory risk from medical device margin caps — Analyst raised concern about health ministry examining margin caps on medical devices (30-50% range); management downplayed but acknowledged uncertainty.; International patient volatility from geopolitical events — March saw 15-18% dip in international patients due to West Asia war; recovery underway but risk remains.; Cash flow conversion below EBITDA — Cash flow from operations at ~60% of EBITDA; analyst noted lower conversion in H2, though management attributed to normal operations..

Promise ledger

Scorecard data is being built as historical quarters are processed.