Ajanta Pharma Q1 net profit up 4% to ₹255 crore on strong revenue growth, margin slips slightly

Specialty pharmaceutical company, Ajanta Pharma Limited, on Monday (July 28), reported a 4% year-on-year (YoY) increase in net profit at ₹255.3 crore for the first quarter that ended June 30, 2025. In the corresponding quarter of the previous fiscal, Ajanta Pharma posted a net profit of ₹245.8 crore.

The company's revenue from operations was up 13.8% to ₹1,302.7 crore as against ₹1,145 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA grew 6.3% to ₹351.3 crore in the first quarter of this fiscal over ₹330.4 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 27% in the reporting quarter as compared to 28.9% in the corresponding period in the previous fiscal.

Also Read: Ajanta Pharma to report strong profit growth till FY27, says Jefferies; check price target

Cash flow from operations came in at ₹282 crore, translating to an 80% conversion from EBITDA. Free cash flow stood at ₹209 crore, with an 82% conversion from profit after tax. The company delivered a return on capital employed (ROCE) of 33% and a return on net worth (RONW) of 26%, reflecting strong capital efficiency.

According to IQVIA MAT June 2025, Ajanta Pharma’s India branded generics business outpaced the Indian Pharmaceutical Market (IPM) growth by 29%. This was driven primarily by a volume increase that surpassed IPM growth by 73%, and new product launches that exceeded IPM growth by 46%.

In terms of its US generics business, the company filed no new ANDAs during Q1 FY26. It received approval for one ANDA and launched one product in the US market. As of the end of the quarter, Ajanta has commercialised 47 ANDAs, with 21 ANDAs awaiting approval from the US FDA and two under tentative approval.

Also Read: Ajanta Pharma Q3 Results: Net profit rises 11% to ₹233 crore, but margin declines 1%

Research and development expenses rose to ₹56 crore in Q1 FY26 from ₹51 crore in the corresponding quarter of the previous fiscal. R&D spend accounted for 4% of revenue during the quarter.

Revenue from branded generics rose 9% YoY to ₹941 crore. Within this segment, the India business grew 16% to ₹409 crore, Asia rose 10% to ₹304 crore, while the Africa market saw a marginal decline of 1% to ₹228 crore. The US generics segment posted strong growth of 36%, with revenue increasing to ₹310 crore from ₹228 crore. Revenue from the African institutional business declined 8% to ₹38 crore.

Shares of Ajanta Pharma Limited ended at ₹2,753.65, down by ₹27.65 or 0.99% on the BSE.