Ajanta Pharma's Q1 Profit Jumps 31% on Strong Revenue Growth
The pharmaceutical company reported robust 25% revenue growth and a 31% profit jump year-on-year, with net profit margin expanding.
Ajanta Pharma's Q1 FY27 results show strong momentum, with revenue up 24.8% and profit surging 30.9% year-on-year. The company's net profit margin also improved significantly.
Ajanta Pharma kicked off its new fiscal year with impressive momentum, delivering a sharp acceleration in both revenue and profit for the first quarter. The company's profit after tax surged 30.9% year-on-year, outpacing a robust 24.8% rise in revenue, indicating healthy operating leverage.
The strong performance was not just an annual improvement but also a significant sequential leap. Compared to the previous quarter (Q4 FY26), revenue grew 14.4% while profit jumped 25.3%. This sequential strength helped lift the net profit margin to 20.6%, up from 18.8% last quarter and 19.6% in the same quarter last year.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,625.96YoY +25% | 1,421.64 | 1,302.65 |
| Profit (₹ Cr) | 334.22YoY +31% | 266.70 | 255.34 |
| Net Profit Margin (%) | 20.6YoY +5.1% | 18.8 | 19.6 |
The table above illustrates a clear upward trajectory over the last five quarters, with both top and bottom lines consistently climbing. The trailing twelve-month (TTM) net profit margin stands at 19.6%, supported by a TTM profit of ₹1,134.88 crore on revenue of ₹5,776.17 crore.
Key Points
- The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.05.
- Return on Equity (RoE) remains healthy at 25.42%.
- The stock has delivered strong returns, gaining 30.4% over the past year and nearly 97% over three years.
Despite the strong earnings growth, the stock trades at a price-to-earnings (P/E) ratio of 33.2, which is at a slight discount to the broader pharmaceutical industry average. The company's focus on chronic therapies and its diversified geographic presence appear to be yielding encouraging results, setting a positive tone for the rest of FY27.
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· AJANTPHARM
(BSE)
ISIN: INE031B01049
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