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Ajanta Pharma Ltd — Q4 FY26
Ajanta Pharma delivered a strong Q4 FY26 with revenue of ₹1,422 crore (+21% YoY) and PAT of ₹267 crore (+18% YoY).
bullish
high
✓ Verified against BSE filing
2-Minute Summary
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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.
Promises0 met · 4 missedRisks4 trackedTranscriptfull text
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Middle East supply chain disruption
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Read Transcript →Quarter Snapshot
India IPM ranking
24th
+2 ranks YoY
Improved from 26th last year; among top 5 in IPM covered market.
US generics revenue (Q4)
₹505 crore
+56% YoY
Driven by 8 new launches in 15 months and seasonal flu product demand.
India field force
3,750 MRs
+300 YoY
Added ~300 medical representatives in FY26; targeting 250-300 more in FY27.
India new product contribution to growth
4.7%
+1.9pp vs IPM
Out of 13.1% India growth; industry new product contribution is 2.8%.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
NEW
Effective tax rate ~26-26.5% in FY27
Tax rate expected to increase as one manufacturing facility transitions out of exemption period.
DROPPED
FY26 EBITDA margin guidance of 27%±1%
Management reiterated EBITDA margin guidance of 27%±1% for the full year, excluding forex mark-to-market impact.
DROPPED
FY26 gross margin guidance of 78%±1%
Gross margin expected to remain around 78%±1% for the full year.
DROPPED
FY26 capex guidance of ~₹300 crore
Capital expenditure for FY26 expected to be around ₹300 crore, with ₹235 crore spent in 9 months.
DROPPED
GLP-1 launch in India in March 2026
Company plans to launch GLP-1 products in India under own brand in March 2026, being in the first wave.
NEW RISK
Middle East supply chain disruption
Geopolitical tensions have increased freight costs and transit times; if prolonged, could impact Asia business recovery and margins.
NEW RISK
US FDA observations at Paithan plant
Five observations received; while management expects no immediate impact, any escalation could affect filings or existing product supplies.
NEW RISK
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.
NEW RISK
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.
RISK GONE
Asia branded business degrowth
Asia branded revenue declined 9% YoY in Q3 due to softer traction in certain markets and shipment delays.
RISK GONE
Competition in GLP-1 market in India
Analyst raised concern about intense competition in India GLP-1 market with 15-20+ players expected; management acknowledged but expects lower competition in emerging markets.
RISK GONE
Forex volatility impact
9-month forex mark-to-market loss of ₹61 crore under other expenses, though no loss in Q3; currency movements remain a risk.
RISK GONE
New labor code cost impact
Additional provision of ₹7 crore made for new labor code liabilities; ongoing impact on staff costs.
🤫 Topics management stopped discussing
Mentioned in Q2 FY26, Q3 FY26
9-month forex mark-to-market loss of ₹61 crore under other expenses, though no loss in Q3; currency movements remain a risk.
Fast read
Guidance and risk preview
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 U...
Geopolitical tensions have increased freight costs and transit times; if prolonged, could impact Asia business recovery and margins.
View Risks →