Company Overview

Ajanta Pharma Limited (BSE: 532331, NSE: AJANTPHARM) reported strong financial performance for FY26 with revenue crossing the ₹5,000 crore milestone, reaching ₹5,453 crore representing 17% growth year-over-year. Net profit increased 15% to ₹1,056 crore, with basic EPS of ₹84.53.

Financial Performance

Revenue Breakdown:

  • Branded Generics Business (68% of revenue): ₹3,690 crore (9% growth)
  • US Generics Business (29% of revenue): ₹1,557 crore (49% growth)
  • Africa Institutional Business (3% of revenue): ₹163 crore (9% growth)

Key Metrics:

  • EBITDA margin: 27% with ₹1,498 crore EBITDA (18% growth)
  • PAT margin: 19%
  • R&D expenditure: ₹252 crore (4.77% of revenue)
  • Dividend distributed: ₹350 crore (₹28 per share)
  • Capital expenditure: ₹264 crore in property, plant and equipment

Operational Highlights

The company expanded its field force to 6,000+ medical representatives and launched 49 new products across markets. Manufacturing operations span 7 state-of-the-art facilities in India, serving 33+ countries with export contribution of 69% of total revenue. Significant progress was made in sustainability initiatives with 34% renewable energy usage and 11,590 tonnes of CO2 emissions reduced.

Balance Sheet & Corporate Structure

Trade receivables increased significantly to ₹1,854 crore while maintaining strong liquidity with ₹103 crore cash and ₹560 crore in current investments. The company has five subsidiaries contributing approximately 12.8% to net assets and 13.9% to profit. Employee stock options remain outstanding with 24,250 options under Share-based Incentive Plan 2019.

Regulatory & Tax Matters

An income tax search was conducted in August 2025 with notice received under Section 158BC for block period 2019-2025. The company filed returns reporting no undisclosed income. Current tax expense stood at ₹300 crore with total tax expense of ₹284 crore representing an effective tax rate of 23.09%.

Corporate Governance & AGM

The 47th Annual General Meeting is scheduled for July 16, 2026, with key agenda items including adoption of financial statements, confirmation of ₹28 per share dividend, reappointment of Mr. Mannalal B. Agrawal as director, and ratification of cost auditor remuneration. The board comprises 8 directors with all regulatory compliances maintained as per Secretarial Audit Report.

Forward Outlook

Management expressed confidence in maintaining EBITDA margins while making further investments in market development. The company is exploring inorganic opportunities for strategic complementary acquisitions and continues to focus on market share gains across therapeutic segments.