Q3 2025 Ajanta Pharma Ltd Earnings Call Transcript
Key Points
- Ajanta Pharma Ltd (BOM:532331) reported a satisfactory performance with a 10% growth in its branded generic business, driven by strategic execution.
- The company generated free cash flows of INR675 crores with a 97% PAT conversion in nine months, showcasing strong financial management.
- Ajanta Pharma Ltd launched 22 new products in Asia and 10 in Africa over nine months, indicating robust product development and market expansion.
- The India business saw a healthy growth of 12% in Q3, with significant contributions from cardiology, ophthalmology, and dermatology segments.
- The company maintained a strong EBITDA margin of 28% for both Q3 and the nine-month period, reflecting operational efficiency.
- The Africa Institution business experienced a significant de-growth of 37% in nine months due to lower purchases by global funds, highlighting volatility in this segment.
- Ajanta Pharma Ltd's US generic business posted only a 3% growth in nine months, indicating slower progress in this market.
- The company's R&D expenses remained at 5% of total revenue, which may impact profitability if not managed effectively.
- There was an increase in personnel costs by 21% due to the addition of medical representatives and changes in gratuity policy, which could pressure margins.
- The company faces uncertainty in its Africa antimalarial business due to potential changes in funding from donor agencies, affecting future revenue predictability.
Ladies and gentlemen, good day. And welcome to the Ajanta Pharma Q3 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Yogesh Agarwal, Managing Director of Ajanta Pharma Limited. Thank you and over to you, sir.
Thank you. Good evening and welcome to all of you. With me, I have Mr Rajesh Agarwal, our joint Managing Director; Mr. Arvind Agarwal, our CFO; Mr. Rajeev Agrawal, our ABC finance and investor relations. I hope the results are already there with you. Now, we will take you through the business wise performance for Q3 and nine months for the FY25 along with the comparison of the previous year for the same period.
So you'll be glad to know that our performance for Q3 was satisfactory as a branded generic business for healthy growth of 10%, this was on the back of our strategic approach and focused execution along with the consistent efforts which allowed us to strengthen
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