Ajanta Pharma Reports 20% Net Profit Growth and Declares Interim Dividend

Ajanta Pharma Limited reported strong financial results for the second quarter of FY26, with a consolidated net profit rising by 20% to ₹260 crore, compared to ₹216 crore in the same period last year. Revenue from operations saw a significant 14% increase, reaching ₹1,354 crore from ₹1,187 crore year-on-year. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹328 crore, marking a 5% increase, with EBITDA margins reported at 24%.

In a boost for shareholders, the Board of Directors approved the first interim dividend for FY26, setting it at ₹28 per equity share (face value ₹2). The total payout for this dividend amounts to ₹349.82 crore, with a record date of November 10, 2025, and payment scheduled for on or after November 20, 2025.

The company attributed its growth to robust performance in its branded generics business in India, which grew 12% to ₹432 crore, and a substantial 48% surge in its US generics business, contributing ₹344 crore in revenue. Ajanta Pharma's Indian branded generics business outperformed the overall Indian Pharmaceutical Market (IPM), exceeding its growth by 32%, particularly in the ophthalmology and dermatology segments.

For the first half of FY26, consolidated revenue grew by 14% to ₹2,656 crore, and net profit increased by 12% to ₹516 crore.

Impact: This news is likely to positively impact Ajanta Pharma's stock price, as strong earnings, revenue growth, and dividend payouts often attract investor confidence. The company's outperformance in key segments like Indian branded generics and US generics demonstrates effective market strategy and execution. (Rating: 7/10)

Difficult Terms: Consolidated Net Profit: The total profit of a parent company and its subsidiaries after deducting all expenses, taxes, and interest. Revenue from Operations: The total income generated from the company's primary business activities. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance, excluding financing and accounting decisions. EBITDA Margins: EBITDA expressed as a percentage of revenue, indicating operational profitability. Interim Dividend: A dividend paid out to shareholders during the company's financial year, before the final annual dividend is declared. Equity Share: A common stock that represents ownership in a corporation and includes voting rights. Record Date: The specific date on which a shareholder must be registered with the company to be eligible to receive the dividend. Branded Generics: Pharmaceutical products that are marketed under a brand name but are bioequivalent to generic drugs. US Generics: Off-patent drugs sold in the United States market, often at lower prices than branded drugs. Indian Pharmaceutical Market (IPM): The total market for pharmaceutical products within India.