Ajanta Pharma Limited — Q3 FY26 earnings call

Call held 30 Jan 2026

Management summary

Ajanta Pharma delivered a strong Q3 FY26 performance, characterized by robust growth in the US and India markets, which offset temporary softness in Asia. The company maintained high profitability with an EBITDA margin of 28% and a PAT margin of 20%. Management remains confident in its mid-teens annual growth guidance, supported by a healthy product pipeline and strategic expansions into new therapies like Gynaecology and GLP-1 generics.

Highlights

  • Total Revenue for Q3 stood at ₹1,375 crores, registering a healthy growth of 20% YoY.

  • EBITDA for the quarter was ₹382 crores, up 19% YoY, with margins resilient at 28%.

  • Profit After Tax (PAT) grew by 18% YoY to ₹274 crores, maintaining a 20% PAT margin.

  • US Generics business delivered exceptional performance with 52% YoY growth, reaching ₹399 crores.

  • India Branded business outperformed the market with 19% growth, contributing 31% of total revenue.

  • Return on Capital Employed (ROCE) stands at 34% and Return on Net Worth (RONW) at 26% as of December 2025.

  • Asia Branded business saw a degrowth of 9% in Q3 due to softer traction in specific markets.

  • Management announced a strategic partnership with Biocon for GLP-1 (Semaglutide) in 26 emerging markets.

Key financials

  1. Revenue ₹1,375 Cr +20%YoY
  2. EBITDA ₹382 Cr +19%YoY
  3. EBITDA Margin 28%
  4. PAT ₹274 Cr +18%YoY
  5. Gross Margin 79%
  6. R&D Spend ₹63 Cr +18.8%YoY

What they filed

Q1 FY27: revenue up 24.8%, net profit up 31.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,187 1,146 1,170 1,303 1,354 +14%1,375 +20%1,422 +22%1,626 +25%
EBITDA311 321 297 351 328 +5%382 +19%333 +12%424 +21%
Net profit216 233 225 255 260 +20%274 +18%267 +19%334 +31%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹1,367 Cr Total
  • India Branded ₹409 Cr 29.9%
  • US Generics ₹399 Cr 29.2%
  • Asia Branded ₹288 Cr 21.1%
  • Africa Branded ₹230 Cr 16.8%
  • Africa Institution ₹41 Cr 3.0%

Guidance & targets

Revenue

  • Overall Revenue Growth Revenue · FY26 · High confidence mid-teens
    It is in line with what we said, mid-teens growth for the whole year.

    — Arvind Agrawal, CFO

  • Asia Branded Growth Revenue · FY26 · Medium confidence mid-single-digit to high-single-digit

    Previously double-digit → mid-single-digit to high-single-digit

    So, I think Asia, we should be able to post mid-single-digit to high-single-digit.

    — Yogesh Agrawal, Managing Director

  • Africa Branded Growth Revenue · FY26 · Medium confidence low-double-digit

    Previously mid-single digit → low-double-digit

    And for Africa, we should probably post the low-double-digit, I think.

    — Yogesh Agrawal, Managing Director

Margin

  • Gross Margin Margin · FY26 · High confidence 78% plus/minus 1%
    For the full year FY '26, we expect gross margin to remain around 78% plus or minus 1%.

    — Arvind Agrawal, CFO

  • EBITDA Margin Margin · FY26 · High confidence 27% plus/minus 1%
    We remain confident of maintaining EBITDA margin of 27% plus or minus 1% for the remaining period and for the full year.

    — Arvind Agrawal, CFO

Capex

  • Capital Expenditure Capex · FY26 · High confidence ₹300 crores
    Capital expenditure during the 9-month period stood at Rs. 235 crores and is expected to be in line with our full year guidance of around Rs. 300 crores.

    — Arvind Agrawal, CFO

Risks & concerns

  • Asia Branded Softness

    medium

    Degrowth of 9% in Q3 due to softer-than-anticipated performance in a few specific markets.

    Management acknowledged

  • Forex Volatility

    medium

    Mark-to-market forex loss of ₹61 crores recorded during the 9-month period.

    Both acknowledged

  • New Labour Code Liabilities

    low

    Additional provision of ₹7 crores made towards liabilities arising from the new government labour code.

    Management acknowledged

Areas of evasion (3)

  • Specific country-wise details for Asia degrowth
  • Exact constant currency growth figures for US business
  • Specific financial details of the Biocon profit-sharing agreement due to confidentiality

Q&A highlights

3 direct
US Generics Growth Drivers Direct
We have launched 8 products in the last 12 months which we are now seeing the full year benefit of that. Plus, we have seen the increase in the market share for some few products. And also, we have one seasonal product for the flu... which also aided growth.

Explains the sustainability of the massive 52% growth in the US segment through a mix of new launches and market share gains.

Asked by Tushar Manudhane, Motilal Oswal

GLP-1 (Semaglutide) Partnership with Biocon Direct
The arrangement will be that they will be supplying the finished product... we have tied up with them for 26 countries where 23 is exclusive tie-up with us... we should start getting the approvals in various countries... from like I think 27-28, the revenues for the GLP-1 should start coming in.

Reveals a major long-term growth lever in emerging markets through an asset-light partnership model.

Asked by Abdulkader Puranwala, ICICI Securities

India Business Outperformance vs IPM Direct
IQVIA is showing a near 15% growth for Ajanta... As against that, our internal growth is 19%... cardiology is lesser than what we are actually recording internally... So if you add that back... it will come up to 19%.

Clarifies the discrepancy between reported numbers and third-party data, confirming strong organic traction in the domestic market.

Asked by Kunal Randeria, Axis Capital

2 min read 5 chapters

Detailed narrative

US Generics: A Powerhouse of Growth

The US generics segment was the standout performer this quarter, growing 52% YoY to ₹399 crores. This was driven by the full-year benefit of 8 new product launches, market share gains in existing products, and a strong contribution from a seasonal flu product. Management expects this momentum to continue, guiding for double-digit growth in FY27 despite a high base.

India Branded: Outperforming the Market

Ajanta's India business grew by 19% in Q3, significantly outperforming the Indian Pharmaceutical Market (IPM) growth of 9%. The company is the 5th largest in its covered market and ranks in the top 10 across all its therapeutic segments. Growth was particularly strong in Dermatology, where the company gained two ranks, and Gynaecology, a new therapy area that is gaining good acceptance from doctors.

Strategic GLP-1 Pivot with Biocon

Management detailed a significant partnership with Biocon to commercialize GLP-1 (Semaglutide) products in 26 emerging markets. While Biocon will supply the finished product and dossier, Ajanta will handle regulatory approvals and commercialization under its own brand name. Revenue from this partnership is expected to start flowing in FY27-28, targeting a growing global market currently valued at billions of dollars.

Asia Softness and Africa's Resurgence

The Asia branded business faced a 9% degrowth in Q3 due to low traction in certain markets and delayed export shipments. However, management expects a revival from Q4 onwards, guiding for mid-to-high single-digit growth for the full year. Conversely, Africa branded business surged 33% in Q3, surpassing initial plans and leading to an upward revision of full-year guidance to low-double-digit growth.

Operational Efficiency and Margin Resilience

Despite a 25% increase in personnel costs due to the addition of 300 medical representatives this year, Ajanta maintained a strong EBITDA margin of 28%. Gross margins remained high at 79%, supported by a favorable product mix. The company continues to invest ~5% of revenue in R&D and expects to maintain a 27% EBITDA margin for the full year FY26.

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