Ajanta Pharma's stock declined 2.06% to ₹3,365.60 on Friday morning trade, showing volatility despite strong quarterly performance. The stock is currently a constituent of the Nifty Midcap 150 index and continues to reflect strong financial fundamentals. The stock opened at ₹3,480.10 in the previous session with a ₹43.70 increase from its previous close of ₹3,436.40, reaching a high of ₹3,498.00 and a low of ₹3,350.00 during the session, with the average traded price at ₹3,390.42. The stock is currently trading in a downtrend with technical indicators showing mixed signals, with the 50 DMA at ₹3,225.02 and the 200 DMA at ₹2,872.16 indicating potential support and resistance levels.
ICICI Securities has issued a hold rating on Ajanta Pharma with a target price of ₹3,260 in its research report dated July 31, 2026, downgrading from previous recommendations. In contrast, Motilal Oswal maintains a buy rating with a target price of ₹4,000, representing a significant difference in analyst opinions. According to ICICI Securities, while the company's Q1FY27 results were ahead of expectations, the brokerage downgraded due to expensive valuations despite raising the target price to ₹3,260 on 28x FY28E EPS. The current stock price of ₹3,365.60 reflects a 1.4% discount to Motilal Oswal's target price, suggesting potential upside potential for investors.
Ajanta Pharma reported robust Q1FY27 results with revenue rising to ₹1,625.96 crore, marking a significant increase from ₹1,421.64 crore in the previous quarter (March 2026). Net profit surged to ₹334.22 crore in June 2026, up from ₹266.70 crore in March 2026, while Earnings Per Share (EPS) increased to ₹26.75 from ₹21.35 over the same period. As reported by ICICI Securities, Ajanta Pharma's Q1FY27 results showed robust performance across key regions, with India, the company's core markets, registering organic growth of 24.4% year-on-year, while the Africa branded business grew 29.4%. However, supply chain disruption due to geopolitical issues continues to impact the Asia business, which witnessed a decline of 16.1% year-on-year.
Ajanta Pharma demonstrated consistent upward trajectory in its annual financial performance, with revenue growing from ₹3,340.99 crore in 2022 to ₹5,452.86 crore in 2026. Net profit surged to ₹1,056.00 crore in 2026 from ₹920.39 crore in 2025, while EPS increased to ₹84.53 from ₹73.56 in the previous year. The company maintained a low Debt to Equity ratio of 0.05 in 2026, indicating sound financial health. Revenue for FY26 reached ₹5,452.86 crore, a substantial increase from ₹4,648.10 crore in 2025, with the company maintaining its EBITDA margin guidance of 26-28% for FY27.
Ajanta Pharma has consistently rewarded shareholders through various corporate actions and dividend distributions. The company announced an Interim Dividend with an effective date of August 5, 2026, following previous interim dividends of ₹28.00 per share (1400%) announced on October 24, 2025, and October 25, 2024. The company also declared Interim Dividends of ₹26.00 per share (1300%) on January 25, 2024. Additionally, Ajanta Pharma has issued bonus shares twice - a 1:2 bonus issue on May 10, 2022, and another on July 29, 2013. The company has also undergone stock splits in the past, with the face value split from ₹5 to ₹2 on January 28, 2015, and previously from ₹10 to ₹5 on April 26, 2012.
