Ajanta Pharma (AJANTPHARM) Q3 25/26 earnings summary

Executive summary

• Revenue from operations grew by 20% year-over-year in Q3 FY26 to ₹1,375 crore, with PAT up 18% to ₹274 crore and resilient margins despite higher investments and operating expenses.

• For the nine months ended December 2025, revenue rose 16% to ₹4,031 crore and PAT increased 14% to ₹789 crore.

• Branded generics remain the core business, contributing 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

• Q3 FY26 revenue: ₹1,375 crore (up 20% YoY); nine-month revenue: ₹4,031 crore (up 16% YoY).

• Q3 FY26 EBITDA was ₹382 crore, up 19% YoY; 9M FY26 EBITDA was ₹1,061 crore, up 10% YoY.

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

• Gross margin: 79% for Q3, 78% for nine months; expected to remain at 78% ±1% for FY26.

• EBITDA margin at 28% in Q3 and adjusted 28% for 9M FY26.

Outlook and guidance

• Confident of sustaining growth momentum across all business segments, focusing on new product launches, expanding into new countries and therapies, and enhancing field force productivity.

• Guidance for gross margin at 78% ±1% and EBITDA margin at 27% ±1% for the full year.

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

• U.S. generics expected to maintain double-digit growth in FY27, though not at FY26's pace.

• Continued emphasis on cost optimization and digitalization across functions.