Ajanta Pharma (AJANTPHARM) Q4 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of ₹4,648 crore in FY25, up 10% year-over-year, with net profit rising 13% to ₹920 crore.

• Branded generics contributed 74% of total revenue, with strong growth in India, Asia, and Africa.

• US generics business grew 9% to ₹1,047 crore, while Africa institutional sales declined 41% due to lower aid procurement.

• Consistent outperformance versus Indian Pharmaceutical Market (IPM) growth, especially in chronic therapies.

• ROCE reached 32% and RONW 25% as of March 2025, with a strong cash conversion ratio of 92%.

Financial highlights

• FY25 total revenue was ₹4,648 crore, up 10% from ₹4,209 crore in FY24.

• Q4 revenue grew 11% year-over-year to ₹1,170 crore; Q4 PAT up 11% to ₹225 crore.

• Gross margin improved to 77% in FY25, up 200 bps, driven by branded generics.

• EBITDA for FY25 was ₹1,260 crore with a 27% margin; Q4 EBITDA margin was 25%.

• PAT for FY25 was ₹920 crore, up 13% year-over-year, with a PAT margin of 20%.

Outlook and guidance

• FY26 EBITDA margin expected at 28% ±1%.

• Focus on new product launches, expanding presence in new countries and therapies, and cost optimization.

• R&D spend to remain at 5% of sales, with half allocated to US market development.

• Branded generics expected to grow in low teens; US business to grow mid to high teens in FY26.

• CapEx guidance for FY26 is ₹300 crore.