Ajanta Pharma margin expands as revenue growth outpaces costs
Operating margin rose 4.47 percentage points sequentially, while other income contributed 6.99% of pre-tax profit and the tax rate moved higher.
Filed 30 Oct 2026, 13:02 IST · Ajanta Pharma Ltd (AJANTPHARM)
Key takeaways
- Consolidated revenue grew +32.53% YoY, while expenses rose +21.51%, lifting operating margin by 6.30 percentage points to 30.52%.
- Net profit increased +49.18% YoY to Rs 388.14 cr despite the tax rate rising 3.81 percentage points to 27.47%.
- The stock rose 0.07% on the result day, well below its 1.17% median absolute move after the past eight results.
Price around the results
Revenue acceleration lifts consolidated earnings
Ajanta Pharma's consolidated revenue rose +32.53% YoY and +10.34% QoQ to Rs 1,794.16 cr. Operating profit grew faster, up +67.03% YoY and +29.27% QoQ, taking operating margin to 30.52%. Net profit rose +49.18% YoY and +16.13% QoQ to Rs 388.14 cr.
Costs supported the margin expansion, but tax was a drag
Expenses grew +21.51% YoY against revenue growth of +32.53%, so operating margin expanded by 6.30 percentage points; sequentially, expenses rose +3.68% against revenue growth of +10.34%, adding 4.47 percentage points to margin. The tax rate increased 3.81 percentage points YoY and 2.27 percentage points QoQ, limiting the conversion of pre-tax profit growth into net profit growth. Other income fell -36.99% YoY and -47.26% QoQ, but still represented 6.99% of pre-tax profit.
Second straight quarter of margin recovery
Operating margin has risen from 23.45% in Q4FY26 to 26.05% in Q1FY27 and 30.52% in Q2FY27. This reverses the decline from 27.80% in Q3FY26 to 23.45% in Q4FY26. Ajanta's margin was 9.70 percentage points above the 20.82% median for the 38 Healthcare peers that had reported the quarter.
Muted stock reaction compared with its results history
The stock gained 0.07% on the result day, with a 0.56% opening gap and volume at 9.67 times its reference level. The move was modest against the past eight result reactions, which included five rises and three falls and had a median absolute move of 1.17%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,794 cr | ₹1,626 cr | +10.34% | +32.53% |
| Other income | ₹37 cr | ₹71 cr | -47.26% | -36.99% |
| Expenses | ₹1,247 cr | ₹1,202 cr | +3.68% | +21.51% |
| Operating profit | ₹548 cr | ₹424 cr | +29.27% | +67.03% |
| Operating margin (%) | 30.52% | 26.05% | — | — |
| Interest | ₹2 cr | ₹3 cr | -29.56% | -33.92% |
| Depreciation | ₹48 cr | ₹45 cr | +6.88% | +10.68% |
| Profit before tax | ₹535 cr | ₹447 cr | +19.77% | +57.02% |
| Tax | ₹147 cr | ₹113 cr | +30.58% | +82.35% |
| Net profit | ₹388 cr | ₹334 cr | +16.13% | +49.18% |
| EPS (₹) | ₹31.07 | ₹26.75 | +16.15% | +49.16% |
Operating margin of 30.52% compares with a Healthcare sector median of 20.82% across 38 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.07% | -0.44% |
Volume on the results session was 9.67× its 20-day average.
What to watch
- Whether operating margin holds above 30.52% after its rise from 26.05% in Q1FY27.
- Whether revenue growth remains ahead of expense growth after the +32.53% versus +21.51% YoY gap.
- Whether the tax rate moves back from 27.47% after rising 3.81 percentage points YoY.