Quarterly results for Ajanta Pharma Ltd
Ajanta Pharma Limited – Q4 FY26 Results Summary
Announcement Date: 05 May 2026
Financial Performance (Consolidated, INR Crores)
- Reported Revenue: ₹1,421.64 Cr (Q4 FY26)
- YoY: +21% (Q4 FY25: ₹1,170.41 Cr)
- QoQ: +3.4% (Q3 FY26: ₹1,374.84 Cr)
- Total Income: ₹1,483.07 Cr
- No Excise Duty/VAT line item in revenue; reported figures used as-is.
Operating Profit Calculation
- Operating Profit (EBITDA): ₹333.4 Cr
- Operating Margin: 23.5% (vs 25.4% Q4 FY25, 27.8% Q3 FY26)
- Adjusted EBITDA (excl. forex MTM): ₹375 Cr (26.4% margin)
- Net Profit (PAT): ₹266.7 Cr
- YoY: +18% (Q4 FY25: ₹225.3 Cr)
- QoQ: –2.6% (Q3 FY26: ₹273.8 Cr)
- Net Margin: 18.8% (flat YoY)
- EPS (Basic): ₹21.35 (vs ₹18.00 YoY, ₹21.91 QoQ)
Balance Sheet Highlights (FY26 vs FY25)
- Total Assets: ₹6,155 Cr (+23%)
- Trade Receivables: ₹1,854 Cr (+57%)
- Inventories: ₹939 Cr (+4%)
- Bank Balances & Investments: ₹561 Cr (+27%)
- Total Equity: ₹4,527 Cr (+19%)
- Total Liabilities: ₹1,628 Cr (+33%)
- Capital Work-in-Progress: ₹258 Cr (up from ₹176 Cr)
What’s Different This Quarter
1. Revenue & Growth Momentum
- Revenue growth (YoY +21%) is the highest in at least 8 quarters, outpacing the recent 4Q average (+14.1% YoY).
- QoQ growth (+3.4%) is in line with recent trends, but the absolute revenue (₹1,421.6 Cr) is a new all-time high, surpassing the previous peak (₹1,374.8 Cr in Q3 FY26).
2. Segment Shifts
- US Generics: Exceptional growth (+56% QoQ, +49% YoY), now 29% of revenue (vs 23% a year ago).
- Africa Institution: Strong revival (+71% QoQ).
- Branded Generics India: Steady growth (+9% QoQ, +14% YoY).
- Asia: Revenue declined (–10% QoQ), attributed to external factors (e.g., war impact).
3. Margins & Cost Structure
- Operating margin (23.5%) compressed by 190 bps YoY and 430 bps QoQ, below the 8Q average (26.8%) and at the lower end of the historical range.
- Other expenses rose sharply (+43% YoY), now 31% of revenue (vs 27% YoY), mainly due to higher forex losses and increased R&D spend.
- R&D expense: ₹70 Cr in Q4 (5% of revenue), up from ₹53 Cr YoY.
- Gross margin: Improved to 78% (vs 76% YoY), reflecting product mix and cost control.
- Employee costs: Up 22% YoY, stable at 24% of revenue.
4. Working Capital
- Receivable days increased sharply to 125 (from 94 YoY), indicating slower collections.
- Inventory days improved to 63 (from 72 YoY).
- Payable days increased to 100 (from 75 YoY).
5. Balance Sheet
- Capital work-in-progress up 47% YoY, signaling ongoing capacity expansion.
- No major changes in debt or cash positions.
Historical Context
- Seasonality: Q4 revenue (₹1,421.6 Cr) is 43% above the Q4 historical average (₹994 Cr), and 21% above the previous Q4 high (₹1,170.4 Cr in Q4 FY25).
- Growth Acceleration: YoY revenue growth (+21%) is well above the 8Q average (+14.7%) and recent 4Q average (+14.1%), confirming a clear acceleration.
- Margins: Operating margin (23.5%) is at the lower end of the historical range (min: 16.9%, max: 28.9%), and below the recent 4Q average (27.2%). Margin compression is notable, driven by higher other expenses and R&D.
- Cost Ratios: COGS as % of revenue improved to 22% (vs 24% historical avg), but other expenses rose to 31% (vs 27% historical avg).
- Record Performance:
- Revenue: All-time high
- PAT: Second highest ever (peak: ₹273.8 Cr in Q3 FY26)
- US Generics: Segment revenue at record levels
Company Updates & Management Commentary
- Auditor’s Report: Clean opinion; emphasis on ongoing Income Tax search (impact not yet quantifiable).
- Forex Volatility: Significant mark-to-market forex losses in Q4, but core EBITDA (ex-forex) remains strong.
- R&D: Increased investment (5% of revenue) to support new launches and pipeline.
- Strategic Focus:
- New product launches (notably in US Generics)
- Expansion in chronic therapies and new geographies
- Expense optimization and digitalization
- Capex: Ongoing investments in manufacturing capacity (CWIP up 47% YoY).
- No major M&A, impairments, or restructuring.
- No forward guidance provided.
Summary:
Ajanta Pharma delivered record revenue in Q4 FY26, led by exceptional US Generics growth and a strong revival in Africa Institution sales. While gross margin improved, operating margin compressed due to higher other expenses (notably forex losses and R&D). Working capital stretched on receivables, but inventory management improved. The company continues to invest in capacity and product development, with management focused on new launches and market expansion. The auditor’s clean report notes an ongoing tax matter, with no current impact on results.