Ajanta Pharma Q1: consolidated PAT up 31% to ₹334 Cr on 25% revenue jump, US +57%
PAT +30.89% YoY · revenue +24.82% · margins flat
₹1,625.96 Cr
+24.82% YoY
₹334.22 Cr
+30.89% YoY
19.7%
+0.5pp YoY
₹26.75
Ajanta Pharma opened FY27 with a broad-based topline print: consolidated revenue from operations rose ~24.8% YoY to ₹1,625.96 Cr (₹1,302.65 Cr) and ~14.4% sequentially, comfortably ahead of the mid-teens FY-growth management set on its Jan-2026 call. The engine was US generics, up 57% to ₹487 Cr (3 ANDA approvals, 2 launches in the quarter), with India branded generics +24% to ₹509 Cr and Africa branded +30% to ₹295 Cr; Asia was the one soft spot, down 16% to ₹255 Cr, which management attributes to continued war impact rather than execution. Consolidated PAT climbed ~30.9% YoY to ₹334.22 Cr, EPS ₹26.75.
Q1 FY-2027 vs prior quarters
The profit-quality nuance matters: operating margin did not expand with the topline. Reported EBITDA margin slipped to ~26% (27% YoY) and adjusted EBITDA (ex-forex) to 28% (29%), as other expenses grew 32% — faster than revenue — on a higher forex loss and cost base. Net margin still ticked up to ~20.6% because other income more than doubled to ₹70.9 Cr, driven by a ₹50.5 Cr foreign-exchange gain (₹9.4 Cr a year ago). Stripping that swing out, the underlying operating story is a steady ~21% adjusted-EBITDA growth — strong, but not the 31% the PAT line advertises. The consolidated-vs-standalone gap reinforces this: standalone PAT grew only ~24% (₹315.47 Cr), the ~7-point divergence sitting in forex/other income and consolidation of the fast-growing US subsidiary.
The stock went into the print at ₹3,523.5, up 5.3% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.
What the summary numbers don't show
Contingency — Aug-2025 income-tax search operations; block-period return filed 6 Apr 2026, consequent impact 'not ascertainable' (Note 6).
For the full year FY26, management expects mid-teens revenue growth, with gross margins around 78% +/- 1% and EBITDA margins at 27% +/- 1% (excluding MTM forex). Capital expenditure is guided at approximately Rs. 300 crores. Asia branded generic business is anticipated to achieve mid-single to high-single digit growth
— This quarter: beat
Against management's own guardposts the print largely delivers: FY27 US double-digit growth (guided) is running well ahead at +57%; Africa's low-double-digit guide is beaten at +30%; India continues to outpace IPM (15% vs 11%, IQVIA MAT Jun-26). The miss is Asia, guided mid-to-high single digit but down 16%. Alongside results the board declared a ₹32/share first interim dividend (₹399.79 Cr, ~₹400 Cr outflow). One overhang to track: the August-2025 income-tax search — the company says any consequent impact on the quarter is currently not ascertainable. No brokerage consensus for this specific quarter could be verified, so the beat-vs-street call is left open.
W1
Asia branded generics recovery: ₹255 Cr, -16% YoY vs management's mid-to-high-single-digit FY guide — watch for the war-impact reversal.
W2
US momentum durability: +57% to ₹487 Cr this quarter against an 8-12 ANDA FY27 filing target and 17 pending approvals; plus GLP-1 India launch guided for Q4/early FY27.
W3
Operating-margin defence: adj EBITDA 28% vs guided 27%±1 held, but ₹50.5 Cr forex gain flattered PAT — track whether operating margin holds if forex normalises.
Unaudited, limited review (BSR & Co). No exceptional items. PAT lift partly non-operating: consolidated other income ₹70.9 Cr (fx gain ₹50.5 Cr vs ₹9.4 Cr YoY); reported EBITDA margin ~26% vs 27% YoY (adj EBITDA 28% vs 29%). Note 6: Aug-2025 IT search, block-period return filed; consequent impact 'not ascertainable'. Cons PAT +31% vs standalone PAT +24% (fx + ₹21.5 Cr subsidiary dividend inside standalone other income; consolidation adds subs revenue).