Ajanta Pharma Q2 FY27 Results Analysis: PAT Jumps 49%, EBITDA Margin Tops Guidance (AJANTPHARM)

Cofacto Research Published October 30, 2026 4 min read

Ajanta Pharma Ltd reported Q2 FY27 numbers with revenue of Rs. 1,794.16 Cr (+32.53% YoY) and PAT growth of +49.18% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 30, 2026
Revenue (Q2)	Rs. 1,794.16 Cr (+32.53% YoY)
PAT (Q2)	Rs. 388.14 Cr (+49.18% YoY)
EBITDA margin	30.52% (+630 bps YoY)
EPS (Q2)	Rs. 31.07 (+49.16% YoY)

Quarter Snapshot

Q2 FY27 delivered 32.5% revenue growth with adjusted EBITDA margin of 30.52%, ~250 bps above the guided 27%±1% band, and PAT up 49.2% YoY. Cash conversion recovered to 1.04x CFO/PAT with Rs.490 cr FCF and a net cash balance sheet, while India share gains (17% vs IPM 13%) and 40%+ US/Africa growth confirm broad-based momentum. Soft spots are R&D at 4.0% of revenue vs the ~5% guide, a 27.5% Q2 tax rate, and US ANDA filings running behind the 5–7 target.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
India "likely ahead"	IPM accelerating, chronic-led	+16.67% Q2 / +20.45% H1	Played out
US "in-line to ahead"; tariff reprieve	Generics outside Section 232	+40.70% Q2 — ahead	Played out
Asia "swing factor" — Red Sea risk to push-out capture	Elevated Q2 guided	Rs.366 cr, +18.06% YoY	Played out
Margins "likely compressing toward 27%±1%"	Cost/freight inflation cited	Adjusted margin 30.52% — above band	Contradicted
"Material MTM add-back plausible" on rupee weakness	Q1-style bridge	FX loss nil in Q2 — no add-back	Contradicted
Tax drift up toward ~26%	From Q1's 25.2%	27.47% Q2 / 26.44% H1	Played out
Gross margin glide 80%→78%	Packaging/freight risk	78.54% Q2	Played out
Africa "deceleration to watch" vs high-double-digit guide	~30% Q1 run-rate	+41.18% Q2 — accelerated	Contradicted

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
FY27 revenue growth "high teens"	Q1 FY27 earnings call	Q2 +32.53%, H1 +28.75% — well ahead	On Track
EBITDA margin 27% ±1% ex-forex	Q1 FY27 earnings call	Q2 adjusted 30.52%; H1 29.14% — above the band	Met
India mid-teens	Q1 FY27 earnings call	+16.67% Q2 / +20.45% H1	Met
Africa BG high double-digit	Q1 FY27 earnings call	+41.18% Q2	Met
Asia mid-to-high teens; Q2 elevated on Q1 push-out	Q1 FY27 earnings call	+18.06% Q2 (Rs.366 vs Q1 Rs.255); H1 only +1.14% — Q2 captured, H1 still below	Partially
US mid-to-upper single-digit	Q1 FY27 earnings call	+40.70% Q2 / +48.70% H1 — far above	Met
Gross margin ~78%	Q1 FY27 earnings call	78.54% Q2 (79.15% H1)	Met
R&D ~5% of revenue	Q1 FY27 earnings call	4.01% (Rs.72 cr, +14.29% YoY)	Below guide

Key Numbers, Quarter by Quarter

Metric	MAT Sep-25	MAT Mar-26	MAT Jun-26	MAT Sep-26
IQVIA India: Ajanta vs IPM	10% vs 8%	13% vs 10%	15.1% vs 11.1%	17% vs 13%
ANDAs commercialized / awaiting	50 / 22	—	51 / 17 (+5 tentative)	52 / 17 (+5 tentative)
R&D % of revenue	~5% (FY26)	—	4% (Q1 FY27)	4.01% (Q2 FY27)

Key Investment Insights

Key Positives

Revenue grew 32.53% YoY to Rs.1,794.16 cr; H1 FY27 revenue Rs.3,420.12 cr, +28.75% YoY
Adjusted EBITDA margin of 30.52% exceeded the guided 27%±1% band; adjusted EBITDA grew 48.48% YoY
PAT grew 49.18% YoY to Rs.388.14 cr; normalized PAT (ex-FX) grew 42.03%
US generics grew 40.70% YoY (Rs.484 cr) and Africa branded generics 41.18% (Rs.312 cr); Africa institutional +262.5% (Rs.116 cr)
India grew 16.67% YoY with Ajanta at 17% vs IPM 13% (MAT Sep-26)
CFO/PAT of 1.04x in H1 (Rs.749.52 cr CFO) vs FY26's 38% cash conversion; FCF Rs.490.49 cr
Net cash position of Rs.575.74 cr; borrowings halved to Rs.104.30 cr; working capital flat despite 29% H1 revenue growth
Asia rebounded to Rs.366 cr (+18.06% YoY), capturing the guided Q1 push-out

Risk Factors

R&D intensity at 4.01% of revenue (Rs.72 cr) is below the guided ~5%
Q2 ETR of 27.47% is above the guided ~26% (H1 26.44%)
US ANDA filings at 1 of the guided 5–7 for FY27; US launches Q4-weighted
Asia H1 growth of only +1.14% YoY despite the Q2 rebound
Standing overhangs unresolved: Paithan USFDA 483, Aug-2025 income-tax search, and 7.41% promoter-group pledged shares