Ajanta Pharma Ltd

Dear Stakeholders,

We take great pride that our efforts to create a long term sustainable and scalable business is bringing encouraging results. With our continued investments in Branded Generics business, we strengthened our chronic product portfolio across the markets.

This continues to enable us to keep reaping its benefits for not just years, but decades to come.

In fact, its benefits are perennial.

Also, this year, we saw the full year benefit of doubling our sales force in emerging markets to 1,800 three years ago. This year we scaled up the sales force in India by 20% to 3,450+. We should be able to see the accrual of its benefits in the next two years. This demonstrates our prudent and responsible approach towards scaling up our Branded Generics business.

We are also conscious of creating enabling infrastructure to support this growth. We are pleased to share that our head office has moved into a brand-new office Ajanta Tower which is in the heart of the business district in Andheri

East in Mumbai. It possesses world-class infrastructure to foster collaborative work culture to promote innovative ideas and attract the best from the talent pool. We also added a world class liguid dosages manufacturing facility at our Pithampur location to fulfil rising opportunities in the exports market.

Our focus has always been on sustainable cost optimisation via technological interventions and process enhancements.

We are also directing our efforts towards reducing working capital deployment across our businesses. Sustained efforts are being made to further improve our manufacturing efficiencies, optimise our manufacturing footprint and optimize overall fixed costs.

Segment Review

Our Branded Generics business contributed 74% to our FY 2025 revenue against 71% in the previous year. This is the highest- ever in the history of Ajanta. During the year, we saw it growing at 15% on the back of expansion in field force, new therapies and new products across the markets.

After a long gap, we expanded into two new therapies of Nephrology and Gynaecology in India which were supported by addition of 200+ Medical Representatives (MRs) on the ground. Also, we added another 250+ to expand our existing therapy footprints in India. We also took a significant step forward with the first ever acguisition of three brands in the pain management segment. These additions align well with the accelerated growth trajectory of our India business and will further strengthen our pain portfolio.

In other emerging markets, we continued to penetrate deeper and expanding chronic therapies. During the year we launched record 70 new products across India and Emerging Markets. We also have a strong product portfolio under registration and development in R&D, which will enable sustainable growth in this business segment.

Our Generics Business in the USA contributed 23% to the revenue in FY 2025. In the year, it grew at a 9% as the new launches were done in the later half. We expect much better growth in FY 2026 as we will see the full benefits of these launches and also new launches during the year. Our execution in this market has been excellent and flawless; and we continue to be a preferred partner for the distributors. But we also remain watchful in the market for any potential US government tariff policies.

Our Anti-malarial Institutional business in Africa has been lumpy in nature due to its reliance on sponsors who fund purchases for further distribution to needy countries. In the year, it de-grew by a 41%. We have been prudent to bring down our dependence on this business to about 3% of our total revenue in FY 2025. In the future, we expect it to diminish further and become insignificant as we focus only on sustainable and scalable businesses.

Financial Highlights

Revenue from operations grew by 10% to Rs 4,648 cr. Our EBITDA grew by 7% to Rs 1,260 cr. with 27% margin. Our Profit After Tax grew by 13% to Rs 920 cr. with PAT margin of 20%.

Our balance sheet position remains pristine with Rs 615 cr. as cash and liguid investments. We generated free cash flow of Rs 694 cr. in the year, which is 75% of PAT.

We remain prudent in our capital allocation by returning excess cash generated in the business to shareholders. During the financial year, your Company distributed a total of Rs 700 cr. to shareholders in the form of dividend and buyback. Our Return on Capital Employed improved to 32% in FY 2025 from 31% a year ago. It is amongst the best in the industry.

Sustainability

Our successful efforts in Growing Sustainably and Scaling Responsibly gives us the confidence for better performance and lesser impact on environment in coming years.

At Ajanta, sustainability is our core value, and we continue to work towards it year after year.

A 34% of our energy reguirements is getting fulfilled from solar power and we continue to enhance this ratio in the coming years with further investments in solar power generation.

Based on the actual output from renewable energy initiatives and energy-saving measures implemented during FY 2025,

Ajanta achieved this significant environmental milestone. These efforts led to a reduction of 14,268 tonnes in C0₂ emissions. Apart from this, we are also working on water conservation, solid waste management and plastic neutrality to make our operations more sustainable in the long run.

We take this opportunity to express our deepest appreciation to all our employees and their families for their consistent contribution in our journey. We continue to improve our people practices, benchmarking against the best in the world, which is confirmed by our recognition of 'Great Place to Work', third year in a row. We also thank you for your continuing trust, support, and commitment to Ajanta.