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Ajanta Pharma Limited Key Financial Ratios

NSE:AJANTPHARM | PHARMACEUTICALS

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2024 - FY 2025

Ajanta Pharma Limited's net profit margin of 19.4% in FY2025 reflects good profitability, with operating margin at 25.5% and gross margin at 77.4%.

Understanding Profitability Margins

In FY 2025, Ajanta Pharma Limited posted a gross margin of 77.4%, an operating margin of 25.5%, a net margin of 19.4%. Gross Margin = (Revenue - COGS) / Revenue; Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Gross 20-40%, Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2024 - FY 2025

Ajanta Pharma Limited's revenue grew 10.5% to 47.43B and net profit grew 12.8% to 9.20B YoY in FY2025, indicating healthy business momentum.

Understanding Company Performance

In FY 2025, Ajanta Pharma Limited's revenue grew by 10.5% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2024 - FY 2025

Ajanta Pharma Limited's ROE of 24.3% in FY2025 indicates excellent capital efficiency.

Understanding Return on Equity (ROE)

In FY 2025, Ajanta Pharma Limited reported an ROE of 24.3%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2024 - FY 2025

Ajanta Pharma Limited's FCF/NI ratio of 0.91x in FY2025 indicates reasonable cash generation relative to profits.

Understanding Net Income vs Free Cash Flow

In FY 2025, Ajanta Pharma Limited's free cash flow trailed net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. When FCF exceeds net income, it suggests high-quality, cash-backed earnings. Persistent gaps may indicate aggressive accounting or heavy capex needs.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2024 - FY 2025

Ajanta Pharma Limited's OCF/NI ratio of 1.26x in FY2025 indicates sound cash management with earnings well-backed by cash.

Understanding Net Income vs Operating Cash Flow

In FY 2025, Ajanta Pharma Limited's operating cash flow exceeded net income. Operating Cash Flow is the actual cash from core operations. OCF exceeding net income signals strong cash collection. OCF trailing net income may indicate aggressive revenue recognition or working capital issues.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2024 - FY 2025

Ajanta Pharma Limited's current ratio of 2.85x in FY2025 indicates healthy short-term liquidity.

Understanding Current Ratio

In FY 2025, Ajanta Pharma Limited reported a current ratio of 2.85. Current Ratio = Current Assets / Current Liabilities. Measures short-term liquidity. A ratio of 1.5-3.0 is generally healthy; below 1.0 signals liquidity risk; above 3.0 may indicate underutilized assets.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2024 - FY 2025

Ajanta Pharma Limited's interest coverage ratio of 58.4x in FY2025 indicates comfortable debt servicing capacity.

Understanding Interest Coverage Ratio

In FY 2025, Ajanta Pharma Limited reported an interest coverage ratio of 58.4x. Interest Coverage = EBIT / Interest Expense. Shows how many times operating profit covers interest payments. Above 5x is comfortable; below 1.5x signals potential difficulty servicing debt.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2024 - FY 2025

Ajanta Pharma Limited's debt-to-equity ratio of 0.01x in FY2025 reflects a conservative, low-leverage capital structure.

Understanding Debt-to-Equity Ratio

In FY 2025, Ajanta Pharma Limited reported a debt-to-equity ratio of 0.01. Debt-to-Equity = Total Debt / Total Equity. Below 1.0 is conservative; 1.0-2.0 is moderate; above 2.0 indicates higher financial risk. Capital-intensive industries naturally carry higher ratios.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2024 - FY 2025

Ajanta Pharma Limited's debt increased 34.4% YoY in FY2025 — rising leverage demands close monitoring.

Understanding Total Debt

In FY 2025, Ajanta Pharma Limited's total debt increased by 34.4% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. YoY changes (shown as percentages) reveal whether the company is leveraging up or deleveraging.

Shares Outstanding

Year-over-year change in diluted shares outstanding

Ajanta Pharma Limited's diluted shares decreased 0.7% YoY in FY2025, indicating shareholder-friendly buybacks.

Over 2 years (FY2024–FY2025), diluted shares decreased 0.7% from 126.01M to 125.17M, reflecting long-term shareholder value creation.

Understanding Shares Outstanding

In FY 2025, Ajanta Pharma Limited's diluted shares decreased by 0.7% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025