# Ajanta Pharma Limited - Financial Results Review (FY 2026)
---
## 1. Auditor’s Note
- The statutory auditors, B S R & Co. LLP, have issued an **unmodified (clean) opinion** on both the **consolidated** and **standalone** financial results for the quarter and year ended 31 March 2026.
- **Emphasis of Matter:**
- The auditors drew attention to a **search operation by Income Tax Authorities** in August 2025 and a subsequent notice under Section 158BC of the Income Tax Act for the block period 1 April 2019 to 17 November 2025.
- The company filed the return for this block period on 6 April 2026.
- The **impact of this matter on the financial results is currently not ascertainable**.
- No qualifications, reservations, or adverse remarks were made.
- The audit report has been filed with the stock exchange and is publicly available.
---
## 2. Financial Performance
### Consolidated Financials (₹ Crore)
| Particulars | Q4 FY26 (Audited) | Q3 FY26 (Unaudited) | Q4 FY25 (Audited) | FY26 (Audited) | FY25 (Audited) |
|---------------------------------------------------------------|-------------------|---------------------|-------------------|----------------|----------------|
| **Income** | | | | | |
| Revenue from operations | 1,421.64 | 1,374.84 | 1,170.41 | 5,452.86 | 4,648.10 |
| Other income (incl. forex gain) | 61.43 | 24.97 | 18.11 | 172.07 | 94.50 |
| **Total Income** | **1,483.07** | **1,399.81** | **1,188.52** | **5,624.93** | **4,742.60** |
| **Expenses** | | | | | |
| Cost of materials consumed | 256.76 | 235.07 | 190.96 | 916.51 | 846.60 |
| Purchases of stock-in-trade | 71.35 | 53.55 | 80.18 | 229.79 | 249.80 |
| Changes in inventories (finished goods, WIP, stock-in-trade) | (23.30) | (2.36) | 12.28 | 37.46 | (25.64) |
| Employee benefits expense | 340.72 | 330.52 | 279.78 | 1,291.15 | 1,089.69 |
| Finance costs | 2.36 | 5.10 | 6.07 | 16.11 | 20.73 |
| Depreciation and amortisation expense | 45.37 | 43.51 | 39.78 | 173.14 | 144.11 |
| Other expenses (incl. forex loss) | 442.70 | 375.82 | 310.06 | 1,583.12 | 1,228.15 |
| **Total Expenses** | **1,135.96** | **1,041.21** | **919.11** | **4,247.28** | **3,553.44** |
| **Profit before tax (PBT)** | **347.11** | **358.60** | **269.41** | **1,377.65** | **1,189.16** |
| Tax Expense (Current + Deferred) | 80.41 | 84.83 | 44.15 | 321.65 | 268.77 |
| **Profit after tax (PAT)** | **266.70** | **273.77** | **225.26** | **1,056.00** | **920.39** |
| **Other Comprehensive Income (OCI), net of tax** | 18.11 | 2.51 | 2.04 | 29.08 | 1.85 |
| **Total Comprehensive Income** | **284.81** | **276.28** | **227.30** | **1,085.08** | **922.24** |
| Paid-up Equity Share Capital (₹ 2 face value) | 25.07 | 25.07 | 25.07 | 25.07 | 25.07 |
| Earnings Per Share (Basic) (₹) | 21.35 | 21.91 | 18.00 | 84.53 | 73.56 |
| Earnings Per Share (Diluted) (₹) | 21.34 | 21.91 | 18.00 | 84.51 | 73.53 |
---
### Standalone Financials (₹ Crore)
| Particulars | Q4 FY26 (Audited) | Q3 FY26 (Unaudited) | Q4 FY25 (Audited) | FY26 (Audited) | FY25 (Audited) |
|---------------------------------------------------------------|-------------------|---------------------|-------------------|----------------|----------------|
| **Income** | | | | | |
| Revenue from operations | 1,210.53 | 1,206.59 | 1,013.94 | 4,845.92 | 4,322.04 |
| Other income (incl. dividend & forex gain) | 62.98 | 25.76 | 17.93 | 204.40 | 119.87 |
| **Total Income** | **1,273.51** | **1,232.35** | **1,031.87** | **5,050.32** | **4,441.91** |
| **Expenses** | | | | | |
| Cost of materials consumed | 256.77 | 235.07 | 190.96 | 916.52 | 846.60 |
| Purchases of stock-in-trade | 57.99 | 57.89 | 56.54 | 218.06 | 184.00 |
| Changes in inventories (finished goods, WIP, stock-in-trade) | (49.56) | (38.23) | (15.10) | (57.32) | (18.58) |
| Employee benefits expense | 313.49 | 306.16 | 257.86 | 1,194.05 | 1,010.90 |
| Finance costs | (0.74) | 1.87 | 0.67 | 2.59 | 4.60 |
| Depreciation and amortisation expense | 44.16 | 42.38 | 38.76 | 168.77 | 139.93 |
| Other expenses (incl. forex loss) | 393.79 | 304.75 | 274.03 | 1,376.62 | 1,094.40 |
| **Total Expenses** | **1,015.90** | **909.89** | **803.72** | **3,819.29** | **3,261.85** |
| **Profit before tax (PBT)** | 257.61 | 322.46 | 228.15 | 1,231.03 | 1,180.06 |
| Tax Expense (Current + Deferred) | 60.33 | 77.42 | 34.72 | 284.21 | 263.17 |
| **Profit after tax (PAT)** | **197.28** | **245.04** | **193.43** | **946.82** | **916.89** |
| **Other Comprehensive Income (OCI), net of tax** | 2.28 | 0.19 | (1.43) | (0.31) | (5.83) |
| **Total Comprehensive Income** | **199.56** | **245.23** | **192.00** | **946.51** | **911.06** |
| Paid-up Equity Share Capital (₹ 2 face value) | 25.07 | 25.07 | 25.07 | 25.07 | 25.07 |
| Earnings Per Share (Basic) (₹) | 15.79 | 19.61 | 15.46 | 75.79 | 73.28 |
| Earnings Per Share (Diluted) (₹) | 15.79 | 19.61 | 15.45 | 75.77 | 73.25 |
---
### Q4 FY 2026 Key Financial Metrics (Consolidated)
| Particulars | Q4 FY25 | % to RO | Q4 FY26 | % to RO | % Growth |
|------------------------------|---------|---------|---------|---------|----------|
| Revenue from Operations | 1,170 | | 1,422 | | 21% |
| COGS | (283) | 24% | (305) | 22% | |
| **Gross Profit** | **887** | 76% | **1,117** | 78% | 26% |
| Employee Benefit | (280) | 24% | (341) | 24% | 22% |
| Other Expenses | (310) | 27% | (443) | 31% | 43% |
| **EBITDA** | 297 | 25% | 333 | 23% | 12% |
| **Adj. EBITDA (excl. forex MTM)** | **297** | **25%** | **375** | **26%** | **26%** |
| Depreciation | (40) | 3% | (45) | 3% | |
| Finance Cost | (6) | 1% | (2) | 0% | |
| Other Income | 18 | 2% | 61 | 4% | |
| **Profit Before Tax** | 269 | 23% | 347 | 24% | 29% |
| Tax Expense | (44) | 4% | (80) | 5% | |
| **Net Profit** | 225 | 19% | 267 | 19% | 18% |
| Other Comprehensive Income | 2 | 0% | 18 | 1% | |
| **Total Comprehensive Income** | 227 | 19% | 285 | 20% | 25% |
---
### FY 2026 Key Financial Metrics (Consolidated)
| Particulars | FY25 | % to RO | FY26 | % to RO | % Growth |
|------------------------------|---------|---------|---------|---------|----------|
| Revenue from Operations | 4,648 | | 5,453 | | 17% |
| COGS | (1,071) | 23% | (1,184) | 22% | |
| **Gross Profit** | **3,577** | 77% | **4,269** | 78% | 19% |
| Employee Benefit | (1,090) | 23% | (1,291) | 24% | 18% |
| Other Expenses | (1,227) | 27% | (1,583) | 29% | 13% |
| **EBITDA** | **1,260** | 27% | **1,395** | 26% | 11% |
| **Adj. EBITDA (excl. forex MTM)** | **1,268** | 27% | **1,498** | 27% | 18% |
| Depreciation | (144) | 3% | (173) | 3% | |
| Finance Cost | (21) | 0% | (16) | 0% | |
| Other Income | 94 | 2% | 172 | 3% | |
| **Profit Before Tax** | **1,189** | 26% | **1,378** | 25% | 16% |
| Tax Expense | (269) | 6% | (322) | 6% | |
| **Net Profit** | **920** | 20% | **1,056** | 19% | 15% |
| Other Comprehensive Income | 2 | 0% | 29 | 1% | |
| **Total Comprehensive Income** | **922** | 20% | **1,085** | 20% | 18% |
---
## 3. Detailed Notes and Management Commentary
- **Forex Impact:**
- Foreign exchange gain included in other income: ₹97.17 Cr (FY26) vs ₹28.21 Cr (FY25).
- Foreign exchange loss included in other expenses: ₹103.04 Cr (FY26) vs ₹8.82 Cr (FY25).
- Adjusted EBITDA excludes mark-to-market forex impact to show core operating performance.
- **Taxation:**
- Current tax increased to ₹300.08 Cr (FY26) from ₹312.30 Cr (FY25).
- Deferred tax charge of ₹21.57 Cr in FY26 vs credit of ₹43.53 Cr in FY25.
- **Income Tax Search Operation:**
- Search by Income Tax Authorities in August 2025 and notice under Section 158BC for block period Apr 2019 to Nov 2025.
- Return filed on 6 April 2026; impact on financials not ascertainable yet.
- **R&D Expense:**
- ₹70 Cr in Q4 FY26 (5% of revenue), ₹252 Cr in FY26 (5% of revenue), increased from ₹53 Cr and ₹161 Cr respectively in prior periods.
- **Strategic Priorities:**
- New product launches across markets.
- Strengthening presence in smaller countries and new entries.
- Focus on chronic therapies and expanding product portfolio.
- Expense optimization and digitalization initiatives.
- **Working Capital:**
- Receivable days increased to 125 days in FY26 from 94 days in FY25.
- Inventory days reduced to 63 days in FY26 from 72 days in FY25.
- Payable days increased to 100 days in FY26 from 75 days in FY25.
---
## 4. Segment Information
| Segment / Market | Q4 FY25 (₹ Cr) | Q4 FY26 (₹ Cr) | Growth % | FY25 (₹ Cr) | FY26 (₹ Cr) | Growth % | % of Total Revenue FY26 |
|---------------------------|----------------|----------------|----------|-------------|-------------|----------|------------------------|
| **Branded Generics** | | | | | | | |
| India | 369 | 404 | 9% | 1,452 | 1,654 | 14% | ~30% |
| Asia | 303 | 274 | (10%) | 1,191 | 1,175 | (1%) | ~22% |
| Africa | 133 | 182 | 37% | 750 | 861 | 15% | ~16% |
| **Sub-Total Branded Generics** | 805 | 859 | 7% | 3,394 | 3,690 | 9% | 68% |
| **US Generics** | 325 | 505 | 56% | 1,047 | 1,557 | 49% | 29% |
| **Africa Institution** | 28 | 48 | 71% | 147 | 160 | 9% | 3% |
| **Total Consolidated Sales** | 1,158 | 1,412 | 22% | 4,588 | 5,407 | 18% | 100% |
- US Generics segment showed **strongest growth** with 56% QoQ and 49% YoY increase.
- Branded Generics India and Africa segments showed healthy growth; Asia declined slightly due to external factors (e.g., war impact).
- Africa Institution segment showed a strong revival with 71% QoQ growth.
---
## 5. Capex, Projects, and Corporate Activity
- **Capital Expenditure:**
- Increase in Capital Work-in-Progress from ₹176 Cr (FY25) to ₹258 Cr (FY26) indicating ongoing investments.
- **Manufacturing Facilities:**
- 7 plants operational, major ones at Paithan (Maharashtra), Guwahati (Assam), Pithampur (Madhya Pradesh), and Dahej (Gujarat).
- **R&D:**
- Increased R&D spend to ₹252 Cr in FY26 (5% of revenue), supporting new product launches and pipeline.
- **Strategic Initiatives:**
- Focus on new product launches, market share gains, expense optimization, and digitalization.
- **No reported impairments, write-downs, or restructuring costs.**
- **No acquisitions or disposals reported during the period.**
---
## 6. Standalone vs Consolidated
- Both **Standalone** and **Consolidated** audited financial results are provided.
- Consolidated results include wholly owned subsidiaries in Mauritius, USA, Philippines, and Nigeria.
- No minority interest reported.
- Consolidated revenue for FY26: ₹5,453 Cr vs Standalone ₹4,846 Cr.
- Consolidated PAT for FY26: ₹1,056 Cr vs Standalone ₹947 Cr.
---
## Summary
- **Strong revenue growth:** 21% QoQ and 17% YoY (Consolidated).
- **Profitability:** PAT up 18% QoQ and 15% YoY; EBITDA margin steady at ~26-27% adjusted for forex.
- **Forex volatility:** Significant mark-to-market forex losses impacting EBITDA, but core operations show solid growth.
- **Segment growth:** US Generics and Africa Institution segments are key growth drivers; India branded generics growing steadily.
- **Working capital:** Receivables days increased, payables days increased, inventory days decreased.
- **Capex and R&D:** Increased investments in capacity and product development.
- **Auditor’s report:** Clean opinion with emphasis on ongoing tax matter, no qualifications.
- **Management focus:** New product launches, market expansion, cost optimization, and digitalization.
---
# Tables Summary
### Consolidated Income Statement (₹ Cr)
| Particulars | Q4 FY26 | Q3 FY26 | Q4 FY25 | FY26 | FY25 |
|-----------------------------------|---------|---------|---------|--------|--------|
| Revenue from operations | 1,421.64| 1,374.84| 1,170.41| 5,452.86|4,648.10|
| Other income | 61.43 | 24.97 | 18.11 | 172.07 | 94.50 |
| Cost of materials consumed | 256.76 | 235.07 | 190.96 | 916.51 | 846.60 |
| Purchases of stock-in-trade | 71.35 | 53.55 | 80.18 | 229.79 | 249.80 |
| Changes in inventories | (23.30) | (2.36) | 12.28 | 37.46 | (25.64)|
| Employee benefits expense | 340.72 | 330.52 | 279.78 | 1,291.15|1,089.69|
| Finance costs | 2.36 | 5.10 | 6.07 | 16.11 | 20.73 |
| Depreciation & amortisation | 45.37 | 43.51 | 39.78 | 173.14 | 144.11 |
| Other expenses | 442.70 | 375.82 | 310.06 | 1,583.12|1,228.15|
| Profit before tax | 347.11 | 358.60 | 269.41 | 1,377.65|1,189.16|
| Tax expense | 80.41 | 84.83 | 44.15 | 321.65 | 268.77 |
| Profit after tax | 266.70 | 273.77 | 225.26 | 1,056.00|920.39 |
| Other comprehensive income | 18.11 | 2.51 | 2.04 | 29.08 | 1.85 |
| Total comprehensive income | 284.81 | 276.28 | 227.30 | 1,085.08|922.24 |
---
### Segment Revenue (₹ Cr)
| Segment | Q4 FY25 | Q4 FY26 | Growth % | FY25 | FY26 | Growth % |
|-------------------|---------|---------|----------|--------|--------|----------|
| Branded Generics - India | 369 | 404 | 9% | 1,452 | 1,654 | 14% |
| Branded Generics - Asia | 303 | 274 | (10%) | 1,191 | 1,175 | (1%) |
| Branded Generics - Africa| 133 | 182 | 37% | 750 | 861 | 15% |
| Sub-total Branded Generics| 805 | 859 | 7% | 3,394 | 3,690 | 9% |
| US Generics | 325 | 505 | 56% | 1,047 | 1,557 | 49% |
| Africa Institution | 28 | 48 | 71% | 147 | 160 | 9% |
| **Total** | 1,158 | 1,412 | 22% | 4,588 | 5,407 | 18% |
---
### Statement of Assets & Liabilities (Consolidated, ₹ Cr)
| Particulars | FY25 | FY26 |
|---------------------------------|----------|----------|
| Property, Plant & Equipment | 1,624.87 | 1,726.35 |
| Capital Work-in-Progress | 176.27 | 258.05 |
| Right to Use Assets | 90.63 | 99.02 |
| Other Intangible Assets | 46.52 | 41.58 |
| Financial Assets (Investments + Others) | 34.49 | 36.49 |
| Deferred Tax Assets (Net) | 186.43 | 188.59 |
| Income Tax Assets (Net) | - | 7.56 |
| Other Non-current Assets | 12.71 | 61.77 |
| **Total Non-current Assets** | 2,171.92 | 2,419.41 |
| Inventories | 903.85 | 938.54 |
| Trade Receivables | 1,182.74 | 1,853.88 |
| Bank Balances & Investments | 440.43 | 561.36 |
| Other Current Assets | 123.30 | 267.73 |
| **Total Current Assets** | 2,843.03 | 3,735.43 |
| **Total Assets** | 5,014.95 | 6,154.84 |
| Equity & Liabilities | FY25 | FY26 |
|--------------------------------|----------|----------|
| Equity Share Capital | 25.07 | 25.07 |
| Other Equity | 3,765.22 | 4,502.02 |
| **Total Equity** | 3,790.29 | 4,527.09 |
| Non-current Liabilities | 228.56 | 212.00 |
| Current Liabilities | 996.10 | 1,415.75 |
| **Total Liabilities** | 1,224.66 | 1,627.75 |
| **Total Equity & Liabilities** | 5,014.95 | 6,154.84 |
---
# End of Extracted Financial Information
