Ajanta Pharma (AJANTPHARM) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 20% year-over-year to INR 1,375 crore, with PAT up 18% to INR 274 crore, driven by strong performance in India and US generics.

• Nine-month FY26 revenue reached INR 4,031 crore, up 16% YoY, with PAT up 14% to INR 789 crore.

• Branded generics contributed 71% of 9M FY26 sales, with India, Asia, and Africa as key markets.

• US generics segment showed robust performance, with a 13% CAGR over five years and 26% of 9M FY26 revenue.

• EBITDA margin for Q3 stood at 28%; for 9M FY26, adjusted EBITDA margin (excluding forex loss) was also 28%.

Financial highlights

• Gross margin for Q3 at 79%, and 78% for nine months; full-year guidance at 78% ±1%.

• Q3 FY26 EBITDA was INR 382 crore (up 19% YoY); 9M FY26 EBITDA was INR 1,061 crore (up 10% YoY); adjusted 9M EBITDA (excluding forex loss) was INR 1,123 crore (up 15% YoY).

• PAT for Q3 at INR 274 crore (up 18% YoY), nine months at INR 789 crore (up 14% YoY); PAT margin stable at 20%.

• Personnel cost increased 25% YoY in Q3 due to sales force expansion; other expenses up 24% YoY.

• R&D spend at 5% of revenue; INR 63 crore in Q3, INR 182 crore for nine months.

Outlook and guidance

• Expect to maintain full-year gross margin at 78% ±1% and EBITDA margin at 27% ±1%.

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

• Guidance for Asia branded business: mid- to high-single-digit growth for FY26; Africa branded business expected to post low double-digit growth.

• U.S. generics to deliver double-digit growth in FY27, though likely lower than FY26's exceptional pace.

• India business to include GLP-1 launches in FY27 growth plans; detailed guidance to be provided next quarter.