Ajanta Pharma (AJP IN) – Q2FY26 Result Update – Healthy revenue growth across key markets – BUY
Published on 03 Nov 2025
AJP’s Q2FY26 EBITDA adj for forex (Rs3.7bn; 27.2% OPM) was in line with our estimates. AJP’s play on high growth branded generics (BGx) market spread across India, Asia and Africa which contributed 74% to total revenue in FY25 and delivered 12.5% CAGR over FY22-25. We expect AJP to clock 13% revenue CAGR over FY25-28E driven by increased focus on branded formulations, penetration into newer therapies and scaleup in US generics. Overall, we expect EBITDA/PAT CAGR of 17%/ 16% over FY25-28E with healthy RoE/RoCE of 28.5%/35.6% in FY27E. At CMP, AJP is trading at 24x P/E and 17.1x EV/EBITDA as of Sept 2027E. We value AJP at 30x P/E on Sept 2027E EPS based on its ability to generate higher RoE/RoCE compared to peers and strong exposure to BGx markets. Maintain BUY rating with TP of Rs3,200/share.
