Ajanta Pharma (AJANTPHARM) Q3 24/25 earnings summary

Executive summary

• Branded generics drove consistent growth in Q3 and 9M FY25, contributing 74–76% of total sales across India, Asia, and Africa, with selective play in US generics.

• Q3 FY25 revenue rose 4% year-over-year to INR 1,146 crore; 9M FY25 revenue up 10% to INR 3,478 crore.

• PAT for Q3 FY25 was INR 233 crore (+11%); 9M FY25 PAT was INR 695 crore (+13%), with PAT margin at 20%.

• Free cash flow of INR 675 crore generated in 9M FY25, with 97% PAT conversion and strong working capital improvements.

• Multiple new therapies launched in India (gynecology, nephrology), 200+ new MRs added, and 26 new products launched in India during 9M FY25.

Financial highlights

• Gross margin improved to 77% in 9M FY25, up 200 bps, and 78% in Q3 FY25, driven by branded generics.

• EBITDA margin stable at 28% for Q3 and 9M FY25; EBITDA of INR 321 crore in Q3 (+2%) and INR 962 crore in 9M (+8%).

• Five-year CAGR: revenue 13%, EBITDA 14%, PAT 15%.

• Capex for 9M FY25 was INR 180 crore; full-year estimate at INR 225 crore.

• R&D expenses for Q3 FY25 were INR 53 crore (5% of revenue); 9M FY25 R&D at INR 161 crore (5% of revenue).

Outlook and guidance

• EBITDA margin guidance maintained at 28% ±1% for FY 2025.

• Gross margin expected to remain in the current range, with minor quarterly fluctuations.

• U.S. generics expected to post double-digit growth next year, with 6–8 launches planned.

• Tax rate expected at 24% for FY 2025–2026, possibly rising to 25% in FY 2027.

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