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Ajanta Pharma Limited — Q3 FY25
Ajanta Pharma reported Q3 FY25 revenue of INR 1,146 crore (+4% YoY), with branded generics growing 10% to INR 834 crore.
bullish
high
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Ajanta Pharma reported Q3 FY25 revenue of INR 1,146 crore (+4% YoY), with branded generics growing 10% to INR 834 crore. EBITDA margin held at 28%, while PAT rose 11% to INR 233 crore. India business grew 12% to INR 345 crore, outpacing IPM by 300 bps. The company entered gynecology and nephrology therapies, adding 200+ MRs. U.S. generics grew 4% to INR 263 crore, with management guiding for double-digit growth next year. Free cash flow generation was strong at INR 675 crore (97% PAT conversion). Risks include uncertainty in Africa institutional business due to donor funding cuts and potential margin pressure from U.S. mix shift. Management maintained EBITDA margin guidance of 28% ±1% for FY25.
अजंता फार्मा ने तीसरी तिमाही में 1,146 करोड़ रुपये की कमाई की, जो पिछले साल से 4% ज्यादा है। ब्रांडेड जेनेरिक दवाओं की बिक्री 10% बढ़कर 834 करोड़ रुपये हुई। कंपनी की कमाई और खर्च के बीच का अंतर (EBITDA मार्जिन) 28% रहा, और मुनाफा (PAT) 11% बढ़कर 233 करोड़ रुपये हो गया। भारत में कारोबार 12% बढ़कर 345 करोड़ रुपये पहुंचा, जो बाजार की औसत वृद्धि से 3% ज्यादा है। कंपनी ने महिला और किडनी रोगों की दवाओं के क्षेत्र में कदम रखा और 200 से ज्यादा सेल्स रिप्रेजेंटेटिव जोड़े। अमेरिका में जेनेरिक दवाओं की बिक्री 4% बढ़कर 263 करोड़ रुपये हुई, और अगले साल दोहरे अंकों में वृद्धि का अनुमान है। कंपनी के पास 675 करोड़ रुपये की मुफ्त नकदी है। जोखिमों में अफ्रीका में दान में कटौती और अमेरिका में मुनाफे पर दबाव शामिल है। कंपनी ने इस साल 28% मार्जिन का अनुमान बरकरार रखा है।
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India Business Growth
12%
+12% YoY
India branded sales grew 12% YoY to INR 345 crore, outpacing IPM growth of 8%.
Branded Generic Growth
10%
+10% YoY
Branded generic sales (India, Asia, Africa) grew 10% YoY to INR 834 crore, contributing 74% of revenue.
Free Cash Flow
INR 675 crore
97% PAT conversion
Free cash flow of INR 675 crore in 9M FY25, with 97% conversion of PAT, driven by working capital improvements.
MR Addition
450
+450 in 9M FY25
Added 450 medical representatives in 9M FY25, including 250 in Q3, to drive India business growth.
What Changed vs Last Quarter
NEW
U.S. generics double-digit growth in FY26
Management guided for double-digit growth in U.S. generics next fiscal year, driven by new launches including 2-3 limited competition products.
NEW
R&D spend at 5% of revenue for FY25
R&D expenses are expected to remain at 5% of total revenue for the fiscal year.
UPDATED
EBITDA margin of 28% ±1% for FY25
Management expects EBITDA margin to remain around 28% for the full fiscal year, with quarterly fluctuations of 50-100 bps.
UPDATED
Capex of ~INR 225 crore for FY25
Capital expenditure for FY25 is estimated at about INR 225 crore, including maintenance capex.
DROPPED
Branded generics mid-teens growth for FY25
Management expects branded generics (India, Asia, Africa) to grow in mid-teens for the full year, with Asia and Africa growth moderating in H2.
DROPPED
US generics mid-single digit growth for FY25
US generics expected to grow in mid-single digits, with most launches in Q4; 4 ANDA launches planned in H2.
NEW RISK
U.S. generic price erosion and launch delays
U.S. generics growth is dependent on new product launches and limited competition; any delays or higher-than-expected price erosion could impact growth.
NEW RISK
Margin pressure from new therapy investments
Entry into gynecology and nephrology in India and CNS in Asia will increase SG&A and personnel costs, potentially pressuring near-term margins.
NEW RISK
Tax rate increase in FY27
Management indicated tax rate may rise from 24% to ~25% in FY27 as some exemptions expire, impacting net profitability.
RISK GONE
Elevated freight costs due to Red Sea disruption
Freight costs remain elevated due to Red Sea crisis, with an annual burden of ~INR 30 crore impacting other expenses.
RISK GONE
Potential margin pressure from SG&A ramp-up
Analyst raised concern about elevated other expenses; management attributed to SG&A ramp-up and one-time gratuity charge, but H2 expenses expected in line with H1.
RISK GONE
Price erosion in US generics
US generics growth remains muted at 2% in H1, with limited launches; pricing pressure and competitive landscape could impact future growth.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY24, Q3 FY24
Overall revenue expected to grow in low teens, with branded generics mid-teens, US mid-single digit, and Africa institutional degrowth.
Mentioned in Q1 FY24, Q2 FY24
Chantix launch is delayed to Q4 FY24 or Q1 FY25; any further delay could impact US revenue expectations.
Mentioned in Q3 FY24, Q4 FY24
India branded generics are expected to grow 200-300 bps faster than IPM (forecast ~8%), implying 10-11% growth.
Mentioned in Q3 FY24, Q4 FY24
Increased transit times and freight costs due to Red Sea crisis could add ~INR 30 crore to expenses, potentially pressuring margins.
Fast read
Guidance and risk preview
Management expects EBITDA margin to remain around 28% for the full fiscal year, with quarterly fluctuations of 50-100 bps.
Africa anti-malarial business declined ~42% in 9M FY25 due to lower Global Fund procurement; future depends on donor funding, which is uncertain gi...
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