Ajanta Q2 revenue rises 33% as adjusted EBITDA margin hits 30%

Ajanta reported consolidated revenue from operations of Rs 1,794 crore in Q2 FY 2027, up 33% from Rs 1,354 crore a year earlier. Adjusted EBITDA, or earnings before interest, tax, depreciation and amortisation excluding foreign-exchange mark-to-market effects, reached Rs 543 crore and its margin rose to 30% from 27%.

What drove Ajanta's 33% Q2 revenue increase?

Ajanta's revenue from operations increased by Rs 440 crore year on year to Rs 1,794 crore in Q2 FY 2027. The rise followed revenue of Rs 1,626 crore in Q1 FY 2027, meaning Q2 revenue was Rs 168 crore higher sequentially. Gross profit was Rs 1,409 crore in Q2, up 36% from Rs 1,037 crore in Q2 FY 2026, ahead of the 33% revenue increase.

The cost structure changed alongside sales growth. Cost of goods sold, or COGS, was Rs 385 crore, equal to 21% of revenue from operations, compared with Rs 317 crore, or 23%, a year earlier. Gross margin therefore increased by 2 percentage points to 79% from 77%. The presentation dated 30 October 2026 identifies these figures as consolidated Q2 FY 2027 performance.

How did Ajanta expand adjusted EBITDA margin to 30%?

Ajanta expanded adjusted EBITDA margin by 3 percentage points to 30% in Q2 FY 2027, from 27% in Q2 FY 2026. Adjusted EBITDA was Rs 543 crore, a 47% increase from Rs 369 crore, excluding foreign-exchange mark-to-market effects. Reported EBITDA rose 66% to the same Rs 543 crore from Rs 328 crore because the prior-year reported figure differed from adjusted EBITDA by Rs 41 crore.

Employee-benefit expense increased 21% to Rs 384 crore, while its share of revenue declined to 21% from 23%. Other expenses increased 23% to Rs 483 crore, but their revenue share fell to 27% from 29%. These lower expense ratios, together with gross margin reaching 79%, accompanied the increase in adjusted EBITDA margin.

Profit before tax rose 57% to Rs 535 crore, equal to 30% of revenue from operations, compared with Rs 341 crore and 25% a year earlier. Tax expense increased to Rs 147 crore from Rs 81 crore, lifting its stated revenue ratio to 8% from 6%. Net profit nevertheless increased 49% to Rs 388 crore and net margin rose to 22% from 19%.

Which segments contributed most to Ajanta's Q2 sales?

Ajanta's Branded Generics business remained its largest Q2 sales segment at Rs 1,182 crore, or 66% of total sales, after growing 23% from Rs 963 crore. USA Generics increased 41% to Rs 484 crore and represented 27% of sales. Africa Institution grew 259% to Rs 116 crore from Rs 32 crore, reaching a 7% sales share.

The three segment figures total Rs 1,782 crore in Q2 FY 2027, compared with Rs 1,339 crore in Q2 FY 2026, a reported 33% increase. This segment-sales total is separate from the Rs 1,794 crore revenue-from-operations figure in the quarterly profit-and-loss presentation. The supplied presentation does not provide a reconciliation for the Rs 12 crore difference between the two Q2 measures.

Within Branded Generics, Africa recorded the fastest regional increase, with revenue rising 41% to Rs 312 crore from Rs 221 crore. Asia increased 18% to Rs 366 crore from Rs 310 crore, while India increased 16% to Rs 504 crore from Rs 432 crore. India was the largest Branded Generics region by value, while Africa recorded the highest growth rate among the three regions.

What does Ajanta's H1 FY 2027 performance show?

Ajanta reported H1 FY 2027 revenue from operations of Rs 3,420 crore, up 29% from Rs 2,656 crore in H1 FY 2026. Gross profit rose 31% to Rs 2,707 crore and gross margin improved to 79% from 78%. The half-year increase was smaller than the 2-percentage-point Q2 gross-margin improvement, although both periods reached a 79% gross margin in FY 2027.

Adjusted EBITDA for H1 FY 2027 was Rs 997 crore, 34% above Rs 745 crore, and its margin rose to 29% from 28%. Reported EBITDA increased 43% to Rs 971 crore from Rs 679 crore, with a margin of 28% versus 26%. Employee-benefit expense represented 22% of H1 revenue, down from 23%, and other expenses represented 28%, down from 29%.

USA Generics grew faster than Branded Generics in the half year. USA Generics sales rose 49% to Rs 971 crore and accounted for 29% of total revenue, while Branded Generics increased 18% to Rs 2,241 crore and accounted for 66%. Africa Institution increased 164% to Rs 187 crore but remained 5% of total revenue.

H1 net profit increased 40% to Rs 722 crore from Rs 516 crore, lifting net margin to 21% from 19%. Profit before tax rose 46% to Rs 982 crore and represented 29% of revenue, compared with Rs 672 crore and 25% in H1 FY 2026. Tax expense increased to Rs 260 crore from Rs 156 crore, and its revenue ratio rose to 8% from 6%.

How did Ajanta's balance-sheet efficiency measures change?

Ajanta reported total assets of Rs 6,425 crore at H1 FY 2027, compared with Rs 6,155 crore at FY 2026. Inventories increased to Rs 967 crore from Rs 939 crore, while inventory days declined to 52 from 63. Trade receivables were broadly stable at Rs 1,863 crore versus Rs 1,854 crore, and receivable days fell to 100 from 125.

Ajanta's shareholders' funds increased to Rs 4,858 crore from Rs 4,527 crore and represented 76% of total equity and liabilities, up from 74%. Current borrowings declined to Rs 104 crore from Rs 212 crore. Trade payables increased to Rs 571 crore from Rs 544 crore, while payable days declined to 60 from 100, according to the H1 FY 2027 balance-sheet data.

Conclusion

Ajanta's Q2 FY 2027 performance combined 33% revenue-from-operations growth with a 3-percentage-point rise in adjusted EBITDA margin to 30%. Gross margin reached 79%, while employee-benefit and other-expense ratios each fell by 2 percentage points; Branded Generics supplied 66% of Q2 segment sales, although USA Generics and Africa Institution grew faster at 41% and 259%, respectively.

A disclosed unresolved matter is the Rs 12 crore gap between Q2 segment sales of Rs 1,782 crore and revenue from operations of Rs 1,794 crore, for which the presentation gives no reconciliation. Later disclosures can also show whether H1 FY 2027's 29% adjusted EBITDA margin, 52 inventory days and 100 receivable days are maintained or change.