Ajanta Pharma says Income Tax search ongoing at offices, units

Specialty pharmaceutical company Ajanta Pharma Ltd on Wednesday (August 20) said the Income Tax Department conducted a search under the Income Tax Act, 1961, at some of its offices and manufacturing units on August 19, 2025. The company said the search is ongoing.In a regulatory filing, Ajanta Pharma stated that it is fully cooperating with officials and providing the clarifications and details sought by them, and will continue to share any further information as required.

The company confirmed that its business operations have continued as usual and were not impacted by the search. Ajanta Pharma also denied rumours circulating on social media and said the recent significant movement in its share price across exchanges is purely market-driven.

Also Read: Ajanta Pharma Q4 Results: Revenue, margins miss estimates as Africa business weighs“We deny the rumours in the social media and the significant movement observed in the price of our shares across Exchanges in the recent past is purely market driven,” it said.

First Quarter ResultsAjanta Pharma reported a 4% year-on-year (YoY) increase in net profit at ₹255.3 crore for the first quarter that ended June 30, 2025. In the corresponding quarter of the previous fiscal, Ajanta Pharma posted a net profit of ₹245.8 crore. The company’s revenue from operations was up 13.8% to ₹1,302.7 crore as against ₹1,145 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA grew 6.3% to ₹351.3 crore in the first quarter of this fiscal over ₹330.4 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 27% in the reporting quarter as compared to 28.9% in the corresponding period in the previous fiscal.

Also Read: Ajanta Pharma Q3 Results: Net profit rises 11% to ₹233 crore, but margin declines 1%

Cash flow from operations came in at ₹282 crore, translating to an 80% conversion from EBITDA. Free cash flow stood at ₹209 crore, with an 82% conversion from profit after tax. The company delivered a return on capital employed (ROCE) of 33% and a return on net worth (RONW) of 26%, reflecting strong capital efficiency.

Shares of Ajanta Pharma Ltd ended at ₹2,681.50, down by ₹25.35, or 0.94%, on the BSE.