Ajanta Pharma (AJANTPHARM) Q2 25/26 earnings summary

Executive summary

• Board approved an interim dividend of INR 28 per share, totaling INR 350 crore, with payment scheduled after 20th November 2025.

• Achieved 14% year-over-year revenue growth in Q2 and H1 FY2026, driven by branded generics and US generics performance.

• Branded generics contributed 72% of total revenue, with strong growth in India, Asia, and Africa.

• US generics segment posted a 13% CAGR over five years, with new launches and increased filings.

• Antimalarial institutional business in Africa declined due to lower procurement by aid agencies.

Financial highlights

• Q2 FY2026 revenue: INR 1,354 crore (up 14% YoY); H1: INR 2,656 crore (up 14% YoY); Q2 PAT: INR 260 crore (up 20% YoY); H1 PAT: INR 516 crore (up 12% YoY).

• Q2 EBITDA: INR 328 crore (up 5% YoY, 24% margin); H1 EBITDA: INR 679 crore (up 6% YoY, 26% margin); adjusted H1 EBITDA margin at 28%.

• Gross margin: 77% for Q2, 78% for H1; full-year margin expected around 78% ±1%.

• Standalone Q2 revenue at INR 1,220 crore, PAT at INR 250 crore; H1 revenue at INR 2,429 crore, PAT at INR 505 crore.

• Excluding forex losses, Q2 EBITDA was INR 369 crore (27% margin), H1 EBITDA INR 745 crore (28% margin), and H1 PAT up 19% YoY.

Outlook and guidance

• Confident of sustaining current growth trajectory across all business segments, with focus on new launches and expanding into new therapies and geographies.

• U.S. business expected to maintain high growth, with high teens growth projected for next year.

• Africa business now expected to achieve double-digit growth for the year, up from earlier mid-single-digit guidance.

• EBITDA margin guidance maintained at 27% ±1% for the rest of the year.

• Continued emphasis on cost optimization, digitalization, and field force productivity.