Ajanta Pharma FY26 Annual Earnings Summary
4 quarters covered · ₹5,454 Cr revenue · ₹1,056 Cr PAT · 25.5% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY26Current-quarter results and commentary indicate the prior promise was delivered or materially on track.
Q2 FY26Current-quarter results and commentary indicate the prior promise was delivered or materially on track.
Q2 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Risks flagged during the year
Prolonged conflict could increase raw material and freight costs, which management expects to absorb for 2-3 months but may pressure margins beyond.
Q1 FY26 · mediumCardiology growth has been lower than IPM due to competitive intensity and market share loss; management expects recovery in 2-3 quarters.
Q1 FY26 · mediumAfrica sales were flat YoY in Q1 due to high base from 28% growth last year; full-year guidance of mid-to-high single-digit growth may be at risk if headwinds persist.
Q1 FY26 · mediumINR 25 crore mark-to-market forex loss in Q1 due to euro movement; further volatility could pressure margins.
Q1 FY26 · mediumOther expenses grew 42% YoY due to investments in branded generics; management expects mid-teen growth for FY26, keeping EBITDA margin in check.
Q2 FY26 · mediumMark-to-market forex losses of INR 41 crore in Q2 distorted EBITDA margin; continued volatility could mask underlying performance.
Q2 FY26 · mediumIQVIA reports Ajanta's cardiology growth at 6% vs IPM's 12%, but management claims internal sales match IPM; discrepancy unresolved.
Q3 FY26 · mediumAsia branded declined 9% YoY due to softer traction in certain markets; management expects recovery from Q4 but no specific timeline.
Q3 FY26 · mediumAnalyst raised concern about aggressive competition in India for GLP-1; management acknowledged 15-20+ competitors expected.
Q3 FY26 · mediumMark-to-market forex loss of INR 61 crore in 9M impacted EBITDA margin; management excluded it from guidance but risk remains.
Q4 FY26 · mediumFive observations received; potential escalation could impact US filings or existing product supplies if not resolved satisfactorily.
Q4 FY26 · mediumAsia declined 10% in Q4 due to logistics disruptions; while management expects high double-digit growth, demand normalization is unproven.
What changed through the year
Q1 FY26 · US generics run-rate to sustain at current level for FY26
Management expects the current quarterly run-rate of ~INR 310 crore to continue for the remaining three quarters, supported by existing limited-competition products and 2-3 more launches planned.
Q1 FY26 · India business to grow 20-25% higher than IPM growth
India business aims to grow at 10%+ if IPM grows at 8%, maintaining its outperformance trajectory.
Q1 FY26 · EBITDA margin guidance of 27% ± 1% for FY26
CFO guided EBITDA margin in the range of 26-28% for the full year, with potential expansion in FY27 as investments moderate.
Q1 FY26 · CapEx guidance of INR 300 crore for FY26
Includes maintenance CapEx of INR 150-200 crore and expansion of liquid plant at Pithampur for emerging markets.
Q2 FY26 · EBITDA margin of 27%±1% for H2 FY26
Management expects EBITDA margin (excluding forex impact) to remain at 27%±1% for the remaining two quarters.
Q2 FY26 · US generics to sustain current run rate in H2
US generics revenue run rate of ~INR 343 crore per quarter is expected to be sustained for the next two quarters.
Q2 FY26 · Africa business to achieve double-digit growth in FY26
Africa business guidance upgraded from mid-single-digit to double-digit growth for the full year.
Q2 FY26 · Capex of INR 300 crore for FY26
Capex incurred INR 145 crore in H1, expected to be in line with full-year guidance of INR 300 crore.
Q3 FY26 · EBITDA margin guidance of 27%±1% for FY26
Management reiterated EBITDA margin guidance of 27%±1% for the full year, excluding mark-to-market forex impact.
Q3 FY26 · Gross margin around 78%±1% for FY26
Gross margin expected to remain around 78%±1% for the full year.
Q3 FY26 · Capex guidance of ~INR 300 crore for FY26
Capital expenditure for 9M stood at INR 235 crore; full year guidance of around INR 300 crore.
Q3 FY26 · US generics double-digit growth in FY27
Management expects US generics to post double-digit growth in FY27, though growth rate may moderate from FY26 levels.
Q4 FY26 · Revenue growth of high-teens for FY27
Management expects overall revenue growth in the high-teens range, driven by recovery in Asia and Africa, while US generics moderate.
Q4 FY26 · EBITDA margin of ~27% for FY27
EBITDA margin guidance of 27% ±1%, factoring in investments in MR additions, R&D, and higher freight/raw material costs from Middle East conflict.
Q4 FY26 · Capex of ~INR 400 crore for FY27
Capex includes INR 150 crore maintenance and INR 250 crore for capacity expansion at existing sites.
Q4 FY26 · US generics mid-single-digit growth in FY27
US generics expected to grow at mid-single digits due to high base and seasonal flu product impact; 4-5 new launches planned in H2.