Ajanta Pharma (AJP IN) – Q3FY26 Result Update – Strong quarter aided by domestic and US market – BUY
Published on 31 Jan 2026
AJP’s Q3FY26 EBITDA grew strongly by 19% YoY (Rs3.8bn; 27.8% OPM) which was 6% above our estimates. The beat was aided by higher revenues across domestic and US markets. The recent in-licensing agreement with Biocon for marketing semaglutide in 26 countries across RoW markets is good fit given its strong existing franchise across these markets. Further AJP’s play on high growth branded generics (BGx) market spread across India, Asia and Africa which contributed 70% to total revenue in 9MFY26. Strong annual free cash flow of Rs8–10bn further supports sustained investments and potential inorganic opportunities, reinforcing medium-term growth visibility.
Overall, we expect EBITDA/PAT CAGR of 17% over FY26-28E with healthy RoE/RoCE of 28%/35% in FY27E. At CMP, AJP is trading at 24x P/E and 17x EV/EBITDA as of FY28E. Maintain BUY rating with TP of Rs3,200/share.
