Ajanta Pharma Limited — Q1 FY26
Ajanta Pharma delivered a 14% revenue growth to INR 1,303 crore in Q1 FY26, driven by a 36% surge in US generics (INR 310 crore) and 16% India growth (INR 409 crore).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
75%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
Medium priority
R&D spend increase: key therapy areas and revenue impact timeline.
Asked by Rehan Saiyyed, Trinetra Asset Managers
Did not specify therapy areas or timeline for revenue impact; spoke generally.
no timeline givendeflected to past performance
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Question
Could you highlight the key therapy areas we are prioritizing in R&D and when we can expect meaningful revenue impact from this industry?
Yogesh Agrawal, Managing Director
R&D expenses have slightly dipped to 4% of revenue. Focus remains in same therapeutic segments. All growth is outcome of R&D; meaningful results seen for last two decades.
Answered
Medium priority
Scope for further working capital efficiency.
Asked by Rehan Saiyyed, Trinetra Asset Managers
Answered clearly that no further efficiency is expected.
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Question
Working capital efficiency has helped us steadily. Do you believe there is still scope?
Arvind Agrawal, CFO
No, I think we have reached quite a peak from here. We don't expect any further efficiency in developing capital cycle.
Answered
High priority
Reason for gross margin improvement QoQ.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Provided specific reasons: product mix and one-off provisioning.
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Question
If you could just help explain the improvement in the gross margin for this quarter compared to fourth quarter.
Arvind Agrawal, CFO
Product mix supports revenue mix. Also, provisioning for returns and expiry added about 1% improvement in gross margin. That is one-off.
Answered
High priority
ANDAs filed in Q1 FY26 and any revision to guidance.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Confirmed guidance and gave specific range.
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Question
On the U.S. business side, while for full year they have guided for 10-12 ANDAs, but these are not filed yet in quarter till date FY 2026. Any color you would like to show on that, any revisioning number?
Yogesh Agrawal, Managing Director
We are very much on track to deliver in that range. We are very confident of filing around 10 ANDAs, ±1 or 2.
Answered
Medium priority
MR increase in Asia region compared to last year.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Provided specific numbers for MR additions.
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Question
If you could let us know how many MRs you've increased in Asia region compared to last year.
Yogesh Agrawal, Managing Director
In emerging markets for current quarter, we have added only 40 MR. For rest of year, looking to add another 200. Whole year strength increase about 250 people.
Partial answer
High priority
Cardiology therapy softness and corrective measures.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Acknowledged issue and gave timeline but no concrete corrective actions.
no specific measures given
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Question
On Cardiology as a therapy for us, it has been a little soft for some time now compared to IPM. If you could just elaborate on corrective measures or how to look at it in terms of growth over the coming near to medium-term.
Arvind Agrawal, CFO
Intensity of competition is increasing. We have started working on it and should come back to normal IPM growth. Maybe in another two, three quarters you will start seeing improvement.
Answered
High priority
Sustainability of U.S. run rate and limited exclusivities.
Asked by Vishal Manchanda, Systematix Group
Clearly stated run rate sustainability and limited competition visibility.
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Question
With respect to the U.S. number this quarter, can we expect this run rate in the upcoming quarters? The run rate to remain at current levels, or can it further ramp up from here?
Yogesh Agrawal, Managing Director
Run rate should sustain at current level going forward. We have some limited competition products and they should remain like that for the whole current year.
Partial answer
Medium priority
Africa branded business flat YoY in euro terms?
Asked by Bino Pathiparampil, Elara Capital
Did not directly confirm or deny the euro-term decline; discussed FOREX loss instead.
did not confirm euro terms analysis
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Question
Africa branded business in British terms looks flat year-over-year. In euro terms, the difference is down roughly 10% YoY. Is that the right way to look at it?
Yogesh Agrawal, Managing Director
The benefit for rupee depreciation against euro is what we have pointed, the INR 25 crore FOREX loss. There has been very less impact of rupee depreciation against euro in current quarter.
Answered
High priority
India business growth guidance for FY26.
Asked by Rashmi Sancheti, Dolat Capital
Provided clear growth aspiration relative to IPM.
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Question
What is the guidance on the India business? Is it something that we would be in mid-teen's growth for India business this year in FY 2026?
Rajesh Agrawal, Joint Managing Director
We would like to maintain our original growth forecast which is growing at 20%-25% higher than the India growth rate, IPM growth rate. Essentially, if IPM is growing at 8%, then we are aiming to grow at 10% and above.
Answered
High priority
EBITDA margin guidance clarification.
Asked by Rashmi Sancheti, Dolat Capital
Revised guidance to 27% ± 1% clearly.
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Question
On operating margin front, if you remove the FOREX, this quarter we have done around 28.9%. You have said that FY 2026 EBITDA margin should be equal to FY 2025, whereas in last quarter you mentioned EBITDA margin guidance would be 28% ± 1%. Are we on track to achieve at least around 28% this year?
Arvind Agrawal, CFO
I think we will be comfortable at 27% ± 1%. You know, you can always say it can be 28%, 26% also. 27% ± 1% is something which we will be more comfortable.
Partial answer
Medium priority
Asia business growth slowdown reason.
Asked by Abdulkader Puranwala, ICICI Securities
Did not explain why growth slowed; reiterated full-year guidance.
no specific reason for slowdown
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Question
On Asia business, why has that growth been split down to say mid-single-digit? Considering the geographies we are into, shouldn't it be growing at a slightly faster pace?
Yogesh Agrawal, Managing Director
We have given guidance of mid teens and we feel we are on course to achieve for the full year. Quarter to quarter numbers may not be exact reflection. For whole year we feel comfortable in range of mid teens growth for Asia.
Partial answer
Medium priority
Growth in new therapies (gynec, nephrology) and MR additions.
Asked by Yogesh Soni, InCred Equities
Declined to comment on therapy growth until year-end; gave MR numbers.
deferred comment on growth
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Question
I wanted to understand on our coverage from the new therapies which we have added, gynec and nephrology, how are we seeing the growth, whether it is in line with what we had anticipated. Second, on the MR addition front within the India business for the new therapies.
Arvind Agrawal, CFO
As far as India business for new therapies, we will be able to comment only after one year. In terms of MRs, we have added about 70 people in this quarter for India business and expecting another similar number in rest of year.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Gross margin improvement of about 1% from one-off provisioning | 100 bps | -200 bps | Overstated vs filing |
| India business volume growth 2.5% vs IPM 1.5% | 2.5% | 14% | Understated vs filing |
| India business growth 10.3% vs IPM 8% | 10.3% | 14% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.