Ajanta Pharma Q4 FY25: PAT up 11%, revenue ₹1,170 cr

Ajanta Pharma Ltd (NSE: AJANTPHARM) reported an increase in consolidated profit for the March 2025 quarter, supported by higher revenue from operations and a steady operating margin profile. The company also reiterated focus areas across branded generics and US generics, while highlighting improvements in cash conversion and shareholder payouts during FY25.

Key numbers reported for the March 2025 quarter

For Q4 FY25, Ajanta Pharma said profit after tax (PAT) rose 11% year-on-year to ₹225 crore versus ₹203 crore in the year-ago quarter. Revenue from operations increased 11% to ₹1,170 crore, up from ₹1,054 crore in Q4 FY24. EBITDA for the quarter stood at ₹297 crore, a 7% increase from ₹278 crore a year earlier, with an EBITDA margin of 25%.

The company’s disclosure linked the quarter’s performance to demand across key business segments, while noting the Africa institutional anti-malaria business can remain volatile. Management also discussed how product mix influences gross margin, with FY25 gross margin stated at 77% and an improvement of 200 basis points over the previous year.

FY25 full-year performance

For the full fiscal year 2024-25, Ajanta Pharma reported PAT of ₹920 crore compared with ₹816 crore in FY24. Revenue from operations increased to ₹4,648 crore from ₹4,209 crore in FY24, translating into 10% growth for the year.

Management commentary during the earnings call also referred to return metrics, with RoCE cited at 32% and return on net worth at 25% as of March 2025. The company stated cash flow from operations of ₹1,157 crore for FY25, along with a cash conversion ratio of 92%.

Management commentary and margin outlook

In the earnings call remarks summarized in the provided text, management said the overall business grew 11% during the quarter and 10% for the year, despite a sharp decline in Africa institution business and softer growth in US generics.

Sense Capital’s note from May 2, 2025 highlighted management guidance of an EBITDA margin of 28% for FY26. The company also indicated that R&D spend has continued at about 5% of total revenue and is expected to remain at similar levels going ahead.

Shareholder payout and cash generation

Ajanta Pharma stated it distributed a significant payout of about ₹700 crore to shareholders, supported by high cash conversion. In a separate segment summary included in the provided material, dividend payout ratio for FY25 was stated at 76%, with dividend plus buyback totaling ₹701 crore.

The earnings call notes also pointed to working capital improvement, with trade receivables at 94 days compared to 199 days and inventory at 72 days compared to 73 days, described as normalizing.

Segment performance signals cited in the material

The provided text includes business-wise figures and a separate segment snapshot. In the business breakdown, management stated branded generics contributed 74% of overall revenue in FY25, and that this business is spread across India, Asia, and Africa.

Another segment snapshot in the material reported US Generics revenue of ₹310 crore with 53 active ANDAs, 21 pending approvals, and one product launched in that quarter. The same snapshot reported Branded Generics revenue of ₹941 crore, with India up 16% year-on-year, Asia up 10%, and Africa down 1%. Africa Institution revenue was reported at ₹38 crore, down 8% year-on-year due to lower aid agency procurement.

Quarterly profit and sales trend (as reported)

The provided quarterly table (figures in ₹ crore) shows net sales and profitability across five quarters ending Dec 2025. Net sales ranged from ₹1,013.94 crore to ₹1,220.24 crore in the period shown, while profit after tax ranged from ₹193.43 crore to ₹254.97 crore.

This table is useful for tracking the relationship between operating profit, other income, and tax outgo across quarters, particularly when other income varies sharply (for example, ₹75.03 crore in Sep 2025).

What the longer-term P&L shows

The profit and loss summary included in the material shows net sales rising from ₹2,718.59 crore in FY21 to ₹4,322.04 crore in FY25. Net profit increased to ₹916.89 crore in FY25 from ₹807.24 crore in FY24, while adjusted EPS rose to ₹73.41 in FY25 from ₹64.12 in FY24.

The same table shows operating profit at ₹1,204.72 crore in FY25 compared with ₹1,119.43 crore in FY24, and profit before tax at ₹1,180.06 crore in FY25 compared with ₹1,096.95 crore in FY24.

Revenue scale and CAGR snapshot

A separate revenue snapshot in the provided material states Ajanta Pharma’s revenue as ₹4,970 crore based on the financial report for Sep 30, 2025, and cites revenue CAGR of 11% over three years, 13% over five years, and 12% over ten years. Another line in the material states that for the fiscal year ended March 31, 2025, annual revenue was ₹4,648 crore with 10.44% growth.

Why these results matter for investors

The Q4 FY25 print reinforces a steady growth profile, with revenue and profit rising at similar rates in the quarter and a 25% EBITDA margin. The full-year figures show that growth in revenue and PAT remained in double digits, alongside high operating cash generation as stated in the call notes.

What investors will likely track next, based on the information provided, is the company’s ability to sustain margins around the guided range, the pace of US generics execution (including ANDA approvals and launches), and the volatility in Africa institutional procurement. The next key reference points are subsequent quarterly updates and any additional disclosures around margin trajectory and business mix.