Ajanta Pharma Limited — Q2 FY26
Ajanta Pharma delivered a strong Q2 FY26 with revenue of INR 1,354 crore (+14% YoY) and PAT of INR 260 crore (+20% YoY).
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.
55%Questions answered2Evaded / deflected11Questions auditedContradictedNumbers vs filing
Partial answer
Medium priority
Why fewer new launches in domestic formulation H1 FY26? Outlook for H2 and FY27?
Asked by Tushar Manudhane, Motilal Oswal
Management explained strategy but gave no specific numbers or timeline for FY27.
no specific launch count or timeline given
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Question
So just on domestic formulation side, the number of new-to-market launches has been less for the first half of FY26. So if you could just share your comments for the remaining second half as well as FY27?
Yogesh Agrawal, Managing Director
I think they have been very selective and strategic in nature. We have fulfilled the gaps wherever we have felt that there is a need for a new product launch. And this trend will continue even for the second half of the year.
Partial answer
High priority
US growth outlook for FY27-28 given R&D spend?
Asked by Tushar Manudhane, Motilal Oswal
Provided near-term run rate but deferred FY27-28 outlook, only gave vague 'high teens' for next year.
deferred long-term outlookvague guidance
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Question
Sir, on the U.S. side, we have been pretty strong for the first half, probably might sustain for FY26. If you could just further sort of extend the thought process for FY27, 28, considering the R&D spend which we are doing now.
Yogesh Agrawal, Managing Director
I think FY 2027 and 2028, probably let's talk a little later in the year. But we believe that U.S. going forward also should perform well. We should go maybe in high teens growth for sure next year.
Answered
Medium priority
Nature of forex loss and full-year margin guidance?
Asked by Bino Pathiparampil, Elara Capital
Explained the accounting treatment and confirmed margin guidance maintained.
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Question
Just wanted some understanding of the nature of the forex loss. You mentioned that it's a translation loss. Where does that arise from?
Arvind Agrawal, CFO
See, we do hedging of our outstanding or export sales, so that hedging, because the euro moved very sharply during this first half, so because of that, the mark-to-market losses have been booked there...
Partial answer
High priority
Why cautious margin view despite robust top-line growth?
Asked by Abdulkader Puranwala, ICICI Securities
Acknowledged growth but cited investments without quantifying margin impact.
no quantified investment impact
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Question
I just wanted to understand why is there a cautious view on margins when the top-line growth is going to improve ahead as well?
Arvind Agrawal, CFO
See, what is happening is that the top-line growth is very robust, as you rightly said. Very true. But we are also simultaneously investing on people and products. That is something which is very, very important.
Answered
Medium priority
Reason for working capital increase and trade receivables?
Asked by Abdulkader Puranwala, ICICI Securities
Clearly explained the switch from factoring to working capital and its impact.
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Question
So just one more on the working capital increase. So if I go through your cash flow, then the first half, the cash flows from operations have been a little weaker as compared to where we were historically. So just wanted to have a recall on the trade receivable commentary...
Arvind Agrawal, CFO
See, last year, we did factoring for our receivables in the U.S. This factoring was done in Q3 at that time. Somehow, we found that the interest cost for working capital is much better. We will get the advantage. So we switched over from factoring to working capital.
Partial answer
Medium priority
When will new MR investments start contributing to margins?
Asked by Bharat Celly, Equirus
Gave a range but no specific quarter or quantified margin benefit.
vague timelineno quantified impact
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Question
So how do you see that impact as well as how long it will take for us to start seeing benefit on the EBITDA side as well as margin side when these new MRs will start contributing positively?
Yogesh Agrawal, Managing Director
I think, let's say, about one, one and a half to two years because to optimize the productivity of the new teams, especially in the new segments, it will take some time.
Evasive
High priority
Can margins return to 30% in two years?
Asked by Bharat Celly, Equirus
Avoided giving a margin target, redirected to growth metrics.
reframed the questionno margin guidance
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Question
When we talk from the margins perspective, so is it possible for us to go back to the margins like 30% probably next two years or largely that the investment will remain around 27%, 28% from the long-term perspective?
Yogesh Agrawal, Managing Director
I think probably if you compare Ajanta's margins or margins with the rest of the pharma companies, we probably are one of the top three or top five companies who have this kind of margins. So I think the correct way to look at would be to see what is the growth we are posting on the top line and the bottom line.
Partial answer
Medium priority
How many MRs to be added in next 18-24 months?
Asked by Bharat Celly, Equirus
Provided a rough estimate but emphasized it's not fixed.
vague estimateno commitment
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Question
And how many MRs or the persons we are looking to add in the next 18-24 months? Is there any ballpark which we can refer to?
Yogesh Agrawal, Managing Director
In the domestic, we don't have any particular ballpark or number set. We will decide as we go along based on the need and the growth in the existing divisions. But however, we can, I mean, broadly going by the past trend, maybe we can look at about a couple of hundred in the next one and a half to two years.
Answered
Low priority
Number of MRs in India and Asia/Africa?
Asked by Abhishek Jain, AlfAccurate Advisors
Provided exact headcount numbers.
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Question
Just wanted to understand how much number of MRs in India and plus Asia and Africa at this point of time due to FY20 expense?
Arvind Agrawal, CFO
We now currently have total 5,680 people, both India and Indian markets put together as of today. India is 3,600 people, and Asia, Africa, it is 2,080 people.
Declined
High priority
Segment-wise EBITDA margin by geography?
Asked by Abhishek Jain, AlfAccurate Advisors
Explicitly refused to provide segment margins.
refused to disclose
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Question
If you can throw some more light on the segment-wise EBITDA, a ballpark number on the different geographies or segments like U.S. generics and Africa and branded and Asia branded and USD?
Arvind Agrawal, CFO
No, we don't give geographical EBITDA margin. Sorry for that.
Answered
Medium priority
Reason for switching from factoring model and sustainability?
Asked by Tushar Manudhane, Motilal Oswal
Clearly explained reason and confirmed continuation.
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Question
And sir, secondly, on this switching from factoring model, any particular reason you would like to call out or highlight? And is this something which now we are going to sort of continue in the foreseeable future?
Arvind Agrawal, CFO
Yes. I think we will continue this structure now because this is little advantageous in terms of the interest rate. So we are getting a benefit of at least 2%-3% compared to factoring.
Partial answer
Medium priority
Why better growth in Africa region? Can double-digit sustain next year?
Asked by Alok Dalal, Jefferies India Private Limited
Provided qualitative confidence but no specific growth percentage for FY26.
no specific growth rate given
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Question
Yogesh, you mentioned about better growth in Africa region for FY26 versus the previous guidance. So what is giving confidence of better growth here?
Yogesh Agrawal, Managing Director
Generally, the way we are seeing the trends, I think we feel for the next two quarters, our growth should be better than what we had guided earlier. ... Africa, we are looking at a double-digit growth for the next year.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Africa quarterly run rate ~230 CR | ₹230 cr | ₹1,354 cr | Understated vs filing |
| Africa Q3/Q4 FY25 average 150 CR | ₹150 cr | ₹1,354 cr | Understated vs filing |
| EBITDA margin guidance 27% plus/minus 1% | 27% | 24% | Overstated vs filing |
| US high teens growth next year | 17% | 14% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.