Ajanta Pharma (AJANTPHARM) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue from operations rose 33% YoY to ₹1,794 crore and PAT increased 49% to ₹388 crore; H1 revenue grew 29% to ₹3,420 crore and PAT rose 40% to ₹722 crore.

• Branded generics remained the largest business, accounting for 66% of sales in Q2 and H1; US generics also delivered strong growth in both periods.

• FY27 revenue growth guidance remains high teens, with moderation expected in H2.

Financial highlights

• Q2 gross profit rose 36% to ₹1,409 crore, with gross margin of 79% versus 77% a year earlier.

• Q2 EBITDA was ₹543 crore, up 66%, with a 30% margin; adjusted EBITDA excluding forex MTM was ₹543 crore, up 47%.

• H1 EBITDA was ₹971 crore, up 43%, at 28% margin; adjusted EBITDA excluding forex loss was ₹997 crore, up 34%, at 29% margin.

• Q2 profit before tax rose 57% to ₹535 crore; H1 profit before tax was ₹972 crore, up 27% from ₹765 crore.

• Personnel costs increased 21% YoY to INR 384 crore in Q2; other expenses rose 23% to INR 483 crore.

Outlook and guidance

• FY27 guidance: revenue growth in the high teens, gross margin ~78% ±100 bps, EBITDA margin ~27% ±100 bps, R&D ~5% of revenue and effective tax rate ~26.5%.

• H2 EBITDA margin is expected below H1 as US competition increases, institutional sales normalize, and R&D and field-force investment steps up.

• FY27 growth guidance: US generics high single digits; Asia and India branded generics mid-teens; Africa branded generics high double digits, with H2 growth slightly lower but robust.

• FY27 CapEx is expected at ~INR 400 crore, including ~INR 150 crore maintenance CapEx; R&D spend is expected to rise in H2.