Earnings Review
Ajanta Pharma beats Street on strong US, India sales
This story was originally published at 16:03 IST on 30 July 2026
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--Ajanta Pharma Apr-Jun consol net profit INR 3.34 bln
--Analysts saw Ajanta Pharma Apr-Jun consol net profit at INR 2.90 bln
--Ajanta Pharma Apr-Jun consol revenue INR 16.26 bln
--Analysts saw Ajanta Pharma Apr-Jun consol revenue at INR 14.91 bln
--Ajanta Pharma Apr-Jun consol PAT INR 3.34 bln vs INR 2.55 bln year ago
--Ajanta Pharma Apr-Jun consol revenue INR 16.26 bln vs INR 13.03 bln yr ago
--Ajanta Pharma to pay INR 32 per share interim dividend
--Ajanta Pharma interim dividend record date Aug 5
--Ajanta Pharma Q1 consol adjusted EBITDA INR 4.54 bln vs INR 3.77 bln yr ago
--Ajanta Pharma Apr-Jun consol adjusted EBITDA margin 28%
--Ajanta Pharma Apr-Jun US generics sales INR 4.87 bln, up 57% on year
--Ajanta Pharma Q1 India branded generics sales INR 5.09 bln, up 24% on year
--Ajanta Pharma Q1 Asia branded generics sales INR 2.55 bln, down 16% on year
--Ajanta Pharma Q1 Africa branded generics sales INR 2.95 bln, up 30% on yr
--Ajanta Pharma shares rise to INR 3,490, up 2.8% vs 0.8?rlier
By Gunjan Rajput
NEW DELHI – Ajanta Pharma Ltd. reported better than expected earnings for the June quarter, led by robust growth in its US generics and India branded generics businesses. The company's net profit rose on year for the ninth consecutive quarter, while revenue posted its strongest on-year growth in 16 quarters.
The company reported a consolidated net profit of INR 3.34 billion for Apr-Jun, up nearly 31% from INR 2.55 billion a year ago and above analysts' average estimate of INR 2.90 billion. The consolidated revenue rose nearly 25% on year to INR 16.26 billion, compared with the Street expectation of INR 14.91 billion.
The jump in the company's net profit is also because of other income, which surged nearly 170% on year to INR 709 million during the reporting quarter. The company's total expenses rose nearly 26% on year to INR 12.50 billion. Other expenses, which account for 39% of the total expenditure, rose over 32% on year to INR 4.93 billion, and employee benefits expense rose nearly 26% on year to INR 3.81 billion. Expenses related to purchase of stock-in-trade increased nearly 30% on year to INR 669 million, and input costs grew over 43% on year to INR 2.97 billion for the reporting quarter.
The company's consolidated adjusted earnings before interest, tax, depreciation and amortisation rose to INR 4.54 billion from INR 3.77 billion a year ago. The EBITDA margin expanded to 28% in the June quarter.
The performance during the quarter was driven by robust growth in the US and domestic businesses. US generics sales surged 57% year-on-year to INR 4.87 billion, while India branded generics revenue rose 24% to INR 5.09 billion. The company said its India branded business outpaced the Indian pharmaceutical market by 36%, according to IQVIA MAT June 2026 data, led by new product launches and higher volumes. Africa branded generics sales rose 30% to INR 2.95 billion, partly offset by a 16?cline in Asia branded generics sales at INR 2.55 billion. Africa institutional business jumped 83% on year to INR 700 million.
Ajanta Pharma's overall domestic branded portfolio grew 15%, compared with 11% for the Indian pharmaceutical market, led by stronger growth in ophthalmology, dermatology, and pain management therapies. However, growth in the cardiology segment lagged the market. During the quarter, the company received three US FDA approvals and launched two products in the US. It had 51 commercialised abbreviated new drug applications, while 17 applications were awaiting final approval and five had tentative approvals at the end of June. Research and deveoplent expenditure rose to INR 660 million from INR 560 million a year ago, accounting for 4% of the revenue.
The company's board has approved interim dividend of INR 32 per share. The record date for the dividend has been fixed as Aug. 5.
The company detailed its earnings during market hours. On Thursday, shares of the company ended at INR 3,436.40 on the National Stock Exchange, up 1.2%. End
Edited by Avishek Dutta
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