Ajanta Pharma posts double-digit Q3 growth on 20% revenue rise

Ajanta Pharma Ltd on Friday (January 30) reported a 17.6% year-on-year increase in net profit for the third quarter, with profit rising to ₹274 crore compared with ₹233 crore in the corresponding period last year. Revenue for the quarter grew 20% year-on-year to ₹1,375 crore from ₹1,146 crore in the same quarter of the previous financial year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at ₹382.5 crore, registering a 19.2% increase compared with ₹321 crore reported a year earlier. The company’s EBITDA margin for the quarter came in at 27.8%, marginally lower than 28% recorded in the year-ago period.

For the nine months ended December 31, 2025, revenue from operations increased 16% year-on-year to ₹4,031 crore from ₹3,478 crore in the corresponding period of the previous year. EBITDA for the nine-month period rose 10% to ₹1,061 crore compared with ₹962 crore, with an EBITDA margin of 26%.

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The company reported a mark-to-market forex loss of ₹61 crore during the nine-month period. Excluding this impact, EBITDA stood at ₹1,123 crore, reflecting a 15% year-on-year growth, with an EBITDA margin of 28%.

Profit after tax for the nine months ended December 2025 increased 14% to ₹789 crore from ₹695 crore in the year-ago period, with PAT margin at 20%. Return on capital employed stood at 34%, while return on net worth was at 26%.

As per IQVIA MAT December 2025 data, Ajanta Pharma’s India branded generics business delivered growth that exceeded the Indian Pharmaceutical Market (IPM) by 28%.

The outperformance was driven by higher volume growth, with volumes increasing 47% faster than the IPM, and strong traction from new product launches, which exceeded IPM growth by 59%.

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As at the end of 9M FY2026, the company had filed three ANDAs, received approvals for two, and launched three products. The total number of ANDAs commercialised stood at 49, while 19 ANDAs were awaiting approval with the US Food and Drug Administration. The company also had six ANDAs under tentative approval.

The company’s research and development expenditure remained steady as a proportion of revenue. R&D spending in the third quarter of FY2026 stood at ₹63 crore compared with ₹53 crore in the same quarter of FY2025, accounting for 5% of revenue. For the nine-month period, R&D expenses rose to ₹182 crore from ₹161 crore a year earlier, also at 5% of revenue.

Shares of Ajanta Pharma Ltd ended at ₹2,770.50, up by ₹75.75, or 2.81%, on the BSE.