Ajanta cuts receivable days as cash conversion reaches 77%

Ajanta reduced receivable days to 100 in H1 FY27 from 125 in FY26 and inventory days to 52 from 63. The presentation also reports Rs 750 crore of cash flow from operations, 77% cash conversion, return on capital employed of 41% and return on equity of 31% for H1 FY27.

How did Ajanta’s working-capital days change in H1 FY27?

Ajanta reduced receivable days by 25 days, inventory days by 11 days and payable days by 40 days between FY26 and H1 FY27. Receivable days declined from 125 to 100, inventory days fell from 63 to 52, and payable days decreased from 100 to 60.

The lower day counts were reported despite higher recorded inventory and receivable balances. Inventories increased by Rs 28 crore to Rs 967 crore in H1 FY27 from Rs 939 crore in FY26, while trade receivables increased by Rs 9 crore to Rs 1,863 crore from Rs 1,854 crore.

What accompanied Ajanta’s lower receivable and inventory days?

Ajanta reported revenue from operations of Rs 3,420 crore in H1 FY27, up 29% from Rs 2,656 crore in H1 FY26. Gross profit increased 31% to Rs 2,707 crore, and gross margin rose by 1 percentage point to 79% from 78%.

All three disclosed segments recorded higher sales in H1 FY27. Branded Generics sales rose 18% to Rs 2,241 crore and represented 66% of total revenue; USA Generics sales increased 49% to Rs 971 crore and represented 29%; Africa Institution sales increased 164% to Rs 187 crore and represented 5%.

Current assets increased by Rs 87 crore to Rs 3,823 crore in H1 FY27 from Rs 3,736 crore in FY26, while total assets rose by Rs 270 crore to Rs 6,425 crore. Bank balances including investments increased to Rs 680 crore from Rs 665 crore, and other current assets rose to Rs 313 crore from Rs 278 crore.

How did Ajanta’s cash generation compare with earlier periods?

Ajanta reported cash flow from operations, or CFO, of Rs 750 crore and cash conversion of 77% in H1 FY27. The cash-conversion rate was 39 percentage points above FY26’s 38%, but 15 percentage points below FY25’s 92%; the presentation does not provide the calculation of cash conversion.

H1 FY27 CFO of Rs 750 crore was higher than FY26 CFO of Rs 529 crore but below Rs 1,157 crore in FY25. Profit after tax increased 40% year on year to Rs 722 crore in H1 FY27 from Rs 516 crore, while the profit-after-tax margin increased to 21% from 19%.

How did Ajanta’s funding mix and reported returns change?

Ajanta reported current liabilities of Rs 1,343 crore in H1 FY27, down from Rs 1,416 crore in FY26, while borrowings declined to Rs 104 crore from Rs 212 crore. Trade payables nevertheless increased to Rs 571 crore from Rs 544 crore, alongside the reduction in payable days to 60 from 100.

Shareholders’ funds increased by Rs 331 crore to Rs 4,858 crore in H1 FY27 and accounted for 76% of total equity and liabilities, compared with 74% at FY26. Other equity rose to Rs 4,833 crore from Rs 4,502 crore, while non-current liabilities increased to Rs 224 crore from Rs 212 crore.

Ajanta reported return on capital employed, or ROCE, of 41% in H1 FY27, compared with 33% in FY26, and return on equity, or ROE, of 31%, compared with 25%. The presentation does not disclose detailed calculation methodologies for either ratio.

The higher reported ratios coincided with earnings before interest, tax, depreciation and amortisation, or EBITDA, rising 43% to Rs 971 crore in H1 FY27 from Rs 679 crore a year earlier. EBITDA margin increased to 28% from 26%, while adjusted EBITDA excluding foreign-exchange mark-to-market loss was Rs 997 crore, with a 29% margin, compared with Rs 745 crore and 28% in H1 FY26.

Conclusion

Ajanta’s H1 FY27 figures combine faster reported collection and inventory cycles with revenue growth and higher earnings. Revenue rose 29% to Rs 3,420 crore, EBITDA rose 43% to Rs 971 crore and profit after tax increased 40% to Rs 722 crore, while CFO was Rs 750 crore.

The next FY27 disclosure will show whether receivable days remain near 100, inventory days near 52 and cash conversion near 77%. The presentation dated 30 October 2026 does not state FY27 targets for these measures or explain the customer, supplier or product factors behind the changes.