Ajanta Pharma (AJANTPHARM) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 14% year-over-year to INR 1,303 crore, with strong growth in branded generics and US generics markets, and resilient margins despite higher expenses.

• Branded generics contributed 73% of total revenue, with leadership in chronic therapies and first-to-market products.

• ROCE reached 33% and RONW 26% as of June 2025, reflecting strong financial health.

• Cash conversion ratio was 80% and free cash flow to PAT conversion stood at 82%.

• Net profit rose 4% year-over-year to INR 255 crore; adjusted PAT (excluding forex loss) grew 12%.

Financial highlights

• Gross margin improved to 79%, up 200 bps year-over-year, aided by better product mix and favorable API prices.

• EBITDA margin at 27% (29% excluding INR 25 crore FOREX loss); EBITDA grew 6% to INR 351 crore.

• PAT margin at 20%, with PAT up 4% to INR 255 crore; adjusted PAT margin at 21%.

• CapEx for the quarter was INR 72 crore; full-year guidance is INR 300 crore.

• Five-year revenue CAGR at 13%, EBITDA CAGR at 6%, and PAT CAGR at 9%.

Outlook and guidance

• Full-year gross margin expected at 78% ±1%.

• EBITDA margin guidance at 27% ±1% for FY26.

• India business to grow 20-25% higher than IPM growth rate, targeting 10%+ if IPM grows at 8%.

• Asia and Africa businesses guided for mid-teens and mid-to-high single-digit growth, respectively.

• Targeting 8-12 ANDA filings annually in the US generics segment.