This article first appeared on GuruFocus .
-
Revenue:INR1,375 crores for Q3, up 20% YoY; INR4,031 crores for nine months, up 16% YoY.
-
Gross Margin:79% for Q3; 78% for nine months.
-
EBITDA:INR382 crores for Q3, up 19% YoY; INR1,061 crores for nine months, up 10% YoY.
-
EBITDA Margin:28% for Q3; 26% for nine months.
-
Profit After Tax (PAT):INR274 crores for Q3, up 18% YoY; INR789 crores for nine months, up 14% YoY.
-
PAT Margin:20% for both Q3 and nine months.
-
Return on Capital Employed:34% as of December 2025.
-
Return on Net Worth:26% as of December 2025.
-
India Business Revenue:INR409 crores for Q3, up 19% YoY; INR1,250 crores for nine months, up 15% YoY.
-
US Generics Revenue:INR399 crores for Q3, up 52% YoY; INR1,052 crores for nine months, up 46% YoY.
-
Africa Branded Business Revenue:INR230 crores for Q3, up 33% YoY; INR679 crores for nine months, up 10% YoY.
-
Asia Branded Generic Business Revenue:INR288 crores for Q3, down 9% YoY; INR902 crores for nine months, up 2% YoY.
-
Personnel Costs:INR331 crores for Q3, up 25% YoY; INR950 crores for nine months, up 17% YoY.
-
Other Expenses:INR376 crores for Q3, up 24% YoY; INR1,140 crores for nine months, up 24% YoY.
-
R&D Spend:INR63 crores for Q3; INR182 crores for nine months.
-
Capital Expenditure:INR235 crores for nine months, expected to be around INR300 crores for the full year.
-
Warning! GuruFocus has detected 2 Warning Sign with BOM:532331.
-
Is BOM:532331 fairly valued? Test your thesis with our free DCF calculator.
Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Ajanta Pharma Ltd ( BOM:532331 ) reported a 20% growth in revenue for the third quarter, showcasing strong business performance.
-
The company's return on capital employed stands at 34% and return on net worth at 26%, indicating robust financial health.
-
The US generics business saw a significant growth of 52% for the quarter, driven by eight new product launches.
-
The India business contributed 31% to total revenue, with a 19% growth in the current quarter, supported by 16 new product launches.
-
Ajanta Pharma Ltd ( BOM:532331 ) continues to outperform the Indian pharmaceutical market, with a growth rate of 11% compared to the market's 9%.
Negative Points
-
The Asia branded generic business experienced a 9% decline in sales for the quarter, reflecting softer-than-anticipated performance in certain markets.
-
Personnel costs increased by 25% for the quarter, primarily due to the addition of medical representatives.
-
The Africa institution business saw a moderate degrowth of 6% for the nine-month period.
-
The company faced a mark-to-market foreign exchange loss of INR61 crores during the nine months.
-
Ajanta Pharma Ltd ( BOM:532331 ) anticipates that the growth in the US business may not be as high in FY27 as it was in FY26.
Q & A Highlights
Q: Could you clarify the growth guidance for the full year 2026? A: Arvind Agrawal, CFO: We are maintaining our guidance of mid-teens growth for the entire year.
Q: What factors contributed to the improvement in gross margins, and can they be sustained? A: Arvind Agrawal, CFO: We expect gross margins to remain around 78% plus or minus 1%. Variations occur quarterly, but we are confident in maintaining this level. Yogesh Agrawal, Managing Director: The US business has seen robust growth due to eight new product launches and increased market share in some products, including a seasonal flu product.
Q: How do you foresee the US business performing in FY27? A: Yogesh Agrawal, Managing Director: While it's early to provide specific guidance, we expect to achieve double-digit growth, although not at the same level as FY26.
Q: What has driven the 19% growth in the India business, particularly in the cardiology portfolio? A: Rajesh Agrawal, Joint Managing Director: The growth is due to seasonal factors, strong customer connections, and outperforming segments like gynecology and dermatology. We have also added 150 medical representatives to enhance coverage.
Q: Can you elaborate on the partnership with Biocon for GLP products? A: Yogesh Agrawal, Managing Director: Biocon will supply the finished products, and we have exclusive rights in 23 countries. We plan to start filing dossiers in Q1 and expect revenues from GLP-1 products to begin in 2027-28. The arrangement includes a combination of transfer pricing and profit-sharing.
Q: What is the strategy for Ajanta Pharma to grow from a $500 million to a $1 billion company? A: Yogesh Agrawal, Managing Director: We are expanding field presence, adding new therapeutic segments, and exploring new geographies like Latin America. We are also actively looking for acquisitions with INR1,000 crores earmarked for this purpose.
Q: How is the Asia business performing, and what are the expectations for FY26? A: Yogesh Agrawal, Managing Director: Asia's performance has been muted due to low traction in certain countries, but we expect a revival in Q4. For FY26, we anticipate mid-single to high-single-digit growth in Asia and low double-digit growth in Africa.
Q: How is the gynecology segment performing in India, and what is its future potential? A: Rajesh Agrawal, Joint Managing Director: Although the contribution is currently insignificant, we are seeing good acceptance from gynecologists. We expect it to become a prominent therapy in the next two to three years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
