Mumbai: Drug manufacturer Ajanta Pharma Limited on Wednesday informed that the Income Tax Department has started raids in some offices and production units of the company on August 19, 2025 under the Income Tax Act, 1961. The company said that this investigation is still going on and it is fully cooperating with the Income Tax officials. Ajanta Pharma said in an official statement, “We are providing all the necessary information and documents to the officials and will continue to do so in future.”
The company also clarified that this raid has no effect on its business operations. All production units and offices are functioning normally. Ajanta Pharma has appealed to investors and the general public to maintain patience. Social media rumors dismissed Ajanta Pharma has categorically dismissed the rumors going on on social media regarding the price of the company’s shares.
The company said in its statement, “The recent rise in the price of our shares is completely market-based and has nothing to do with any kind of false rumors.” The company has advised investors not to pay attention to such rumors.
Strong financial performance
Ajanta Pharma reported excellent financial performance in the first quarter ended June 2025. The company’s net profit increased by 4% to Rs 255.3 crore, as against Rs 245.8 crore in the same quarter last year. Income from operations increased by 13.8% to Rs 1,302.7 crore, as against Rs 1,145 crore last year.
The company’s EBITDA (earnings before interest, tax, depreciation and amortization) grew by 6.3% to Rs 351.3 crore. However, the EBITDA margin stood at 27%, slightly lower than 28.9% last year. The company recorded operational cash flow of Rs 282 crore and free cash flow of Rs 209 crore. Apart from this, the company achieved a return of 33% on capital and 26% on net worth, which reflects its strong financial position.
Share performance
On Wednesday, Ajanta Pharma’s stock closed down 0.87% at Rs 2,679.70 per share. The stock has seen a decline of more than 3% in the last one month, while the stock has come down 10.5% so far this year. The market cap of the company is around Rs 33.5 thousand crore. The 52-week high of the stock has been Rs 3,485 and the lowest level has been Rs 2,327.
Ajanta Pharma has assured its investors that it will maintain its commitment to transparency and regulatory compliance. The company said that it will continue to share all the necessary updates on time in the future as well.
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