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Informist, Wednesday, Jul. 29, 2026

By Eshitva Prakash

MUMBAI – Ajanta Pharma Ltd. is expected to report a healthy rise in its consolidated net profit and sales for the June quarter, driven by a strong performance in the US and India. Domestic sales will remain an important growth lever for the company on continued traction across therapies. Higher research and development expenditure and a tax rate increase will likely limit net profit growth, brokerages tracking the company said.

Ajanta Pharma is expected to report a consolidated net profit of INR 2.90 billion for the June quarter, up more than 13% on year and nearly 9% sequentially, according to the average of estimates from seven brokerages. YES Securities (India) Ltd. has the highest estimate for net profit at INR 3.27 billion on strong branded generics performance across geographies except Asia. The lowest estimate for the company's net profit is INR 2.67 billion from ICICI Securities Ltd. A higher effective tax rate will keep profitability of the company under pressure, the brokerage said.

The company's net sales are expected to be INR 14.91 billion for the June quarter, up over 14% on year and nearly 5% on quarter, according to the average of the estimates. The highest estimate for net sales is INR 15.54 billion from Elara Securities (India) Pvt. Ltd. and the lowest is INR 14.28 billion from 360 ONE Capital Market Pvt. Ltd.

Brokerages unanimously agreed that the June quarter will see another strong quarterly growth in India for the company, mainly on the back of its branded generics. This segment will also be popular in Africa, several brokerages said. However, opinions on sales in the US diverge as some brokerages expect strong growth while others expect moderation due to a high base.

Nirmal Bang said Ajanta Pharma's net profit growth will lag its earnings before interest, tax, depreciation, and amortisation growth in case of a higher effective rate. ICICI Securities expects the company to face a 26% effective tax rate for the June quarter, compared with 23% in the year ago quarter. Some production-linked incentives are expected to taper off in the financial year 2026-27 (Apr-Mar), Ajanta Pharma's management had said earlier.

The company is expected to report consolidated EBITDA of INR 4.12 billion for the June quarter, up 17% on year, according to the average of six estimates. The highest estimate is INR 4.38 billion from Elara Securities and the lowest is INR 3.91 billion from ICICI Securities. The company's EBITDA margin growth will be limited due to higher expenditure for research and development, Nirmal Bang said. However, the brokerage added that this investment will produce strong medium-term growth levers for the company.

STRONG INDIA SHOW

Sales growth in other Asian nations may be disrupted due to the war in West Asia, YES Securities said. The brokerage, however, expects a recovery in sales in this region in the September quarter. Nirmal Bang Equities Pvt. Ltd. is slightly more optimistic and expects a modest recovery in the company's sales in Asia from the reporting quarter itself.

Motilal Oswal Financial Services Ltd. expects Ajanta Pharma's India business to grow 12% on year, led by strong performance in ophthalmology, pain, and anti-diabetic therapies. Systematix Shares and Stocks (India) Ltd. expects over 9% on-year sales growth in India. YES Securities expects high-teen domestic growth. Revenues from its branded generics in India were INR 4.09 billion in the year-ago quarter.

The quality of domestic growth for Ajanta Pharma is constructive because its offering is not just volume-led, but is anchored in specialty-heavy branded generics across cardiology, ophthalmology, dermatology, and pain therapies, Nirmal Bang said. New pushes into nephrology and gynaecology therapies also adds an incremental runway, the brokerage said. The glucagon-like peptide-1 opportunity under the company's partnership with Biocon Ltd. is a medium-term lever rather than a near-term growth driver in India, some brokerages said.

AFRICA, US

Motilal Oswal expects a 45% year-on-year sales growth in the US and sees the region as a key growth driver for the company in the June quarter. Systematix is similarly bullish on growth prospects in the US and it has projected a 53% year-on-year revenue growth. Nirmal Bang, however, expects a slower growth in the US due to a high base, while ICICI Securities sees a modest traction for all export markets cumulatively. Generics revenues from the US were INR 3.10 billion for the year-ago quarter.

Africa will deliver a robust growth of 12% on year, driven by strong execution and expansion into new markets, Motilal Oswal said. YES Securities expects high-teen revenue growth in the region. Africa will be a steady contributor to the company's revenue growth, and it is better framed as a durable and scaling market than a quick margin-expansion opportunity, Nirmal Bang said. Ajanta Pharma got INR 2.28 billion from sales of branded generics in Africa in the year-ago quarter.

Ajanta Pharma will report its earnings for June quarter Thursday. Wednesday, shares of Ajanta Pharma ended at INR 3,396.50 per share on the National Stock Exchange, 1.6% higher from Tuesday. The stock has risen over 17% since the company announced its March quarter earnings.

Of the 11 research reports on the company available with Informist, 10 have a "buy" recommendation on the stock with an average target price of INR 3,336 per share, which is around 2% higher than the stock's current market price. One brokerage has a "hold" recommendation with a target price of INR 3,196.

Following are the June quarter earnings estimates for Ajanta Pharma from seven brokerages, in descending order of the estimate of net profit, in INR billion:

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Edited by Shubhayan Bhattacharya

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