Ajanta Pharma Limited

Ajanta Pharma achieved significant milestones in FY26, with revenue surpassing ₹5,000 crores and net profit crossing ₹1,000 crores. Revenue from operations grew by 21%, while margins expanded by 18%. The company reported a robust Return on Capital Employed of 33% and Return on Net Worth of 25% as of March 2026, underscoring its strong financial health and operational efficiency. This performance was broad-based across its key business verticals.

The US Generics business delivered an excellent performance, with sales growing 49% YoY to ₹1,557 crores in FY26, contributing 29% to total revenue. This growth was fueled by 8 new product launches over the past 15 months. The India business also showed strong momentum, growing 14% YoY to ₹1,654 crores in FY26 and outperforming the Indian Pharmaceutical Market (IPM) growth of 10%. Ajanta Pharma improved its ranking to 24th in the Indian market as per IQVIA MAT March 2026.

The Asia Branded Generics business experienced a decline, with Q4 sales falling 10% to ₹274 crores and full-year sales marginally down 1% to ₹1,175 crores. This was primarily attributed to geopolitical developments in the Middle East, which caused significant supply chain disruption^🌐s and impacted dispatches. Management expressed confidence in the business regaining growth momentum in the coming quarters^⏳, with a guidance of high double-digit growth for Asia in FY27 as logistics issues are streamlined.

The company's EBITDA margin for FY26 stood at 26%, with a Q4 margin of 23%. For FY27, management guided for an EBITDA margin of 27% (+/- 1%), factoring in continued strategic investments in market development, product portfolio expansion, and increased R&D costs for new filings. Gross margins are expected to remain around 77% (+/- 1%). Personnel costs increased 18% in FY26 due to MR additions and a provision for the new Labour Code.

Capital expenditure for FY26 was ₹330 crores, in line with guidance. For FY27, capex is projected to increase to approximately ₹400 crores, with ₹150 crores allocated for maintenance and the balance for new capacity expansion. Trade receivables increased to 125 days in FY26 from 94 days last year, mainly due to higher US sales and a shift from factoring to working capital loans. Inventory levels improved to 63 days from 72 days, reflecting focus on efficiency.

In India, the gynaecology segment is progressing well and is expected to contribute meaningfully in the next 2-3 years, supported by planned MR additions. The nephrology segment, while more challenging, shows positive signs but will take longer to scale. Regarding the semaglutide opportunity, the company plans to start filings outside India this quarter, anticipating commercialization in 2 years, revenue generation in the third year, and significant market penetration by the fourth year.