Ajanta Pharma (AJANTPHARM) Q2 25/26 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth in Q2 and H1 FY26, driven by branded generics and US generics performance.

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

• Margins remained resilient despite higher expenses and continued investments in people and products.

• 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 FY26 revenue: INR 1,354 crores (up 14% YoY); H1 FY26: INR 2,656 crores (up 14% YoY).

• Q2 FY26 EBITDA: INR 328 crores (up 5% YoY, 24% margin); H1 FY26 EBITDA: INR 679 crores (up 6% YoY, 26% margin).

• Q2 FY26 PAT: INR 260 crores (up 20% YoY, 19% margin); H1 FY26 PAT: INR 516 crores (up 12% YoY, 19% margin).

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

• Excluding forex losses, Q2 EBITDA was INR 369 crores (27% margin), H1 EBITDA was INR 745 crores (28% margin), and PAT up 23% YoY.

Outlook and guidance

• Confident of sustaining current growth trajectory across all business segments.

• EBITDA margin guidance maintained at 27% ±1% for the year, excluding Forex losses.

• Focus on new product launches, expanding into new countries and therapies, and enhancing field force productivity.

• CapEx for FY26 expected at INR 300 crores.

• Double-digit growth expected in Africa and U.S. generics for the next year.