Ajanta Pharma Poised To Deliver Double Digit Growth, Says Systematix Maintaining 'Buy' Post Strong Q1 Results
Ajanta Pharma reported Q1 FY26 revenue of Rs 13 billion, up 13.8% YoY and 11.3% QoQ. Ebitda stood at Rs 3.51 billion, up 6.4% YoY and 18.2% QoQ. Ebitda margin stood at 27%, down 188 bps YoY and up 158 bps QoQ. PAT stood at Rs 2.5 billion, up 3.9% YoY and 13.4% QoQ. PAT margin stood at 19.6%, down 186 bps YoY and up 36 bps QoQ.
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Systematix Report
Ajanta Pharma Ltd.'s Q1 FY26 revenue (13,027 million) was above our / consensus estimates led by strong growth in North America (36% YoY) and India branded formulation (~16% YoY). Ajanta Pharma continues to add to its sales force in Emerging Markets and India which should help it sustain the double-digit growth.
The Emerging Market field force will be expanded by 10% this year and ~150 MR's will be added in India to support the newly launched therapies (Gynecology and Nephrology).
North America's quarterly run rate should remain at current levels for the rest of the year. Overall, with continued new product launches, MR addition, and new geography additions in EM's, Ajanta Pharma remains poised to deliver double digit growth.
We retain our forecasts on Ajanta and maintain Buy with a target price of Rs 3,293 based on 35x FY27E earnings per share.
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