Can Ajanta Pharma Sustain Its Earnings Momentum After Jefferies’ Positive Q2FY26 Review?
About Ajanta Pharma
Ajanta Pharma Ltd continues to deliver consistent growth across key markets in India, Africa, and the US. Jefferies reiterated its Buy rating, recognizing Ajanta’s strong execution in specialty segments and robust export performance. The company’s diversified product mix, particularly in branded generics, has supported steady growth and high margins despite currency headwinds.
Jefferies highlighted that Ajanta’s Q2FY26 EBITDA margin remained resilient at 27%, even as forex adjustments impacted reported earnings. The company’s US and African markets contributed significantly to growth, with strong sales traction in ophthalmology, dermatology, and cardiology portfolios.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY |
|---|---|---|
| Revenue | ₹1,020 Cr | +10% |
| EBITDA | ₹275 Cr | +13% |
| EBITDA Margin | 27% | Stable |
| PAT | ₹205 Cr | +9% |
Revenue ₹1,020 Cr saw 10% YoY growth, aided by higher exports and steady India sales. EBITDA ₹275 Cr increased by 13% due to product mix improvement and operating efficiency. Margins at 27% remained firm, underscoring Ajanta’s disciplined cost structure. PAT ₹205 Cr improved on strong demand in Asia and Africa despite forex volatility.
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Peer Comparison
| Company | EBITDA Margin | YoY Growth |
|---|---|---|
| Ajanta Pharma | 27% | +10% |
| Alkem Labs | 22% | +9% |
| Cipla | 24% | +8% |
SWOT Analysis
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Valuation & Investment View
- Short-term: Supported by strong exports and product demand recovery.
- Medium-term: Increased Africa sales and new launches to drive growth.
- Long-term: Sustained R&D focus and high-margin generics to ensure profitability.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, highlights that Ajanta’s strong exports, cost control, and new product pipeline keep it well-positioned. Explore more market insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Ajanta Pharma
- How did Ajanta Pharma manage 27% EBITDA margins in Q2FY26?
- What are Jefferies’ key drivers behind its Buy rating on Ajanta?
- Can African markets sustain Ajanta’s export-led growth trajectory?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
