Ajanta Pharma Net Profit Climbs 49% to ₹388 Crore in Q2 FY27 on Robust Global Sales

Key numbers

P/E TTM vs Industry	38.1x / 46.3xValuation Context
Market Cap	₹43,232 CrMid Cap
1-Year Price Change	44.9%Stock Performance
Promoter Holding	63.5%As of Oct 2026

Key highlights

• Consolidated revenue from operations grew 32.5% YoY to ₹1,794 crore in Q2 FY27
• Net profit surged 49.2% to ₹388 crore compared to ₹260 crore in the same period last year
• Operating margins improved significantly to 29.2% from 24.1% on a yearly basis
• India branded generic sales rose 16% to ₹504 crore, outperforming the market growth
• US generic business posted 41% revenue growth, reaching ₹484 crore for the quarter
• Africa Institution segment recorded a sharp 259% growth, contributing ₹116 crore
• R&D expenditure for the quarter stood at ₹72 crore, representing 4% of total revenue

Branded Generics Drive Core Performance Across Geographies

The company's strategic core, branded generics, continues to contribute approximately two-thirds of total revenue. In the Indian market, Ajanta reported ₹504 crore in sales, a 16% increase compared to ₹432 crore in the previous year. According to IQVIA MAT September 2026 data, the company's branded generic performance in India exceeded the Indian Pharmaceutical Market growth by 27%.

Other geographies also showed momentum, with African branded generics growing 41% to ₹312 crore and Asian markets up 18% to ₹366 crore. The management noted that higher growth in India was driven by new launches, which exceeded market volumes significantly.

US Market and Institutional Segments Post Triple-Digit Momentum

• The US Generic segment delivered ₹484 crore in revenue, a 41% increase over Q2 FY26
• Ajanta now has 52 products commercialized on the shelf in the US market
• The Africa Institution business surged 259% YoY to ₹116 crore for the quarter
• ANDA status update shows 56 active approvals with 17 currently awaiting US FDA clearance
• Total exports across US and Africa Institution now account for roughly 34% of quarterly revenue

Enhanced Operating Efficiency and Capital Returns

Ajanta Pharma demonstrated strong operational leverage as adjusted EBITDA (excluding forex loss) rose 47% to ₹543 crore, with margins expanding to 30% against 27% in the base quarter. For the first half of FY 2027, the company reported a healthy Return on Capital Employed (ROCE) of 41% and a Return on Net Worth (RONW) of 31%. R&D efficiency remained a focus, with expenses maintained at 4% of revenue despite an increase in absolute spend to ₹138 crore for H1 FY 2027.

The company's cash flow conversion remains robust, with a 77% CFO-to-EBITDA ratio for the first half of the year.

Management Commentary on Market Positioning

As per IQVIA MAT September 2026, our India branded generic performance exceeded IPM growth by 27%. The higher growth came from new launches, which exceeded IPM by 70% & volumes, which exceeded IPM by 18%.

What to watch next

• Outcome of 17 ANDA approvals currently awaiting US FDA clearance
• Filing of 5-6 targeted products for the US market by the end of FY 2027
• Normalization of supply chain in Asian markets which were previously impacted by war
• Upcoming Q3 FY27 results and management update in January 2027

“Revenue up by 33% and PAT up by 49% (2nd Quarter FY 2027 Consolidated Results).”

Ajanta Pharma · financial snapshot

Share price	₹3459.7
Market capitalisation	₹43,232.07 Cr
Revenue (annual)	₹5,452.86 Cr
Net profit (annual)	₹1,056.00 Cr
Revenue (latest quarter)	₹1,625.96 Cr+14.37% vs previous quarter
Net profit (latest quarter)	₹334.22 Cr+25.32% vs previous quarter
P/E (TTM)	38.09×Sector 48.73×
Promoter holding	63.47%-0.01% QoQ
FII holding	7.62%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.