Decreased Market Demand Affects Anjan Drug's Income, Backed by Private Equity
Anjan Drug, a Chennai-based active pharmaceutical ingredient (API) manufacturer backed by PAG, has reported an 11% revenue decline in the fiscal year ended March 31, 2025 (FY25). The company's revenue from operations fell to Rs 289 crore ($33.7 million), according to the provisional financials reviewed by our website.
The decline in revenue was primarily due to softening demand in the market. This trend was evident throughout the fiscal year, with the revenue from operations falling 11% year-on-year. The decline in revenue was further reflected in the company's quarterly earnings. For the quarter ended June 30, 2025, Anjan Drug's revenue from operations stood at Rs 81 crore ($9.8 million), a significant drop from the previous quarter.
Despite the revenue decline, Anjan Drug managed to maintain a gross margin of 35% and an operating profit of Rs 22 crore ($2.6 million) during the quarter. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period was Rs 37 crore ($4.4 million).
The total assets of Anjan Drug as of June 30, 2025, were Rs 600 crore ($72 million), with total liabilities amounting to Rs 500 crore ($60 million). This resulted in a net debt of Rs 100 crore ($12 million) for the company. Despite the challenging fiscal year, Anjan Drug's net profit for the quarter ended June 30, 2025, was Rs 17 crore ($2 million).
As Anjan Drug navigates through this period of softening demand, it remains to be seen how the company will adapt and recover. The management has not yet issued a formal statement regarding their plans to address the decline in revenue. However, with the support of PAG and a strong focus on API manufacturing, Anjan Drug may be well-positioned to weather this storm and return to growth in the future.
[1] Financial data obtained from the review of Anjan Drug's financials conducted by our website.
The challenging market conditions in the industry led to a decline in Anjan Drug's revenue, with a notable dip seen in the finance sector as well, resulting in an overall 11% revenue drop in the fiscal year. The company's focus on API manufacturing, backed by PAG, may prove instrumental in navigating this period and potentially recovering in the future.
