Ajanta Pharma (AJANTPHARM) Q4 25/26 earnings summary

Executive summary

• Achieved record revenue exceeding ₹5,453 crore and net profit above ₹1,056 crore in FY26, with EBITDA close to ₹1,500 crore and robust growth across all business segments.

• Business operates in over 30 countries, with 68% of sales from branded generics and strong leadership in chronic therapies.

• India, Asia, and Africa branded generics delivered strong growth, while US generics saw extraordinary expansion from new launches.

• EBITDA margin for FY26 was 26%; adjusted EBITDA margin was 27%.

• ROCE at 33% and RONW at 25% for FY26, reflecting strong financial health.

Financial highlights

• FY26 consolidated revenue from operations grew 17% year-over-year to ₹5,453 crore; Q4 revenue was ₹1,422 crore, up 21% YoY.

• Net profit increased 15% to ₹1,056 crore; Q4 PAT was ₹267 crore, up 18% YoY.

• FY26 EBITDA reached ₹1,395 crore (26% margin); adjusted EBITDA was ₹1,498 crore (27% margin).

• Gross margin at 78% for the year; R&D spend at 5% of revenue.

• EPS for FY26 was ₹84.53 (basic); effective tax rate for FY26 at 23%, expected to rise to 26-26.5% in FY27.

Outlook and guidance

• FY27 revenue growth guided at high teens (16-18%), with EBITDA margin guidance at 27% ±1%.

• CapEx expected to rise to ₹400 crore in FY27, with ₹150 crore for maintenance and the rest for capacity expansion.

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

• Continued emphasis on cost optimization and digitalization across all functions.

• U.S. business expected to grow at mid-single digits; Asia and Africa branded generics to see high double-digit growth; India business to grow at mid-single digits.