Ajanta Pharma (AJANTPHARM) Q4 25/26 earnings summary

Executive summary

• Achieved FY26 revenue of ₹5,453 crore (up 17% YoY) and net profit of ₹1,056 crore (up 15% YoY), with Q4 revenue at ₹1,422 crore (up 21% YoY) and PAT at ₹267 crore (up 18% YoY).

• EBITDA for FY26 was ₹1,395 crore (26% margin), with adjusted EBITDA at ₹1,498 crore (27% margin); Q4 EBITDA was ₹333 crore (23% margin), adjusted to ₹375 crore (26% margin) for forex losses.

• ROCE at 33% and RONW at 25% for FY26.

• Business operates in 33+ countries, with 68% of sales from branded generics and strong leadership in chronic therapies.

• Robust growth across India, Africa, and US generics, with new launches and continued investments in people, portfolio, and market development.

Financial highlights

• FY26 consolidated revenue: ₹5,453 crore (up 17% YoY); Q4 revenue: ₹1,422 crore (up 21% YoY).

• FY26 PAT: ₹1,056 crore (up 15% YoY); Q4 PAT: ₹267 crore (up 18% YoY); PAT margin steady at 19%.

• FY26 EBITDA: ₹1,395 crore (26% margin); adjusted EBITDA: ₹1,498 crore (27% margin); Q4 EBITDA: ₹333 crore (23% margin), adjusted to ₹375 crore (26% margin).

• Gross margin: 79% for Q4, 78% for the year; R&D spend at 5% of revenue.

• EPS for FY26 was ₹84.53 (basic); cash flow from operations at ₹529 crore; inventory days at 63.

Outlook and guidance

• FY27 revenue growth guidance in 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.

• Effective tax rate expected to increase to 26%-26.5% as a facility exits exemption.

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

• High double-digit growth expected in Asia and Africa, mid-single-digit growth in India and US.