Aurobindo Pharma submitted its Business Responsibility & Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange and National Stock Exchange of India Limited on August 3, 2026. The filing, mandated under Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, outlines the company’s environmental, social, and governance performance on a consolidated basis. The report highlights a renewable energy share of 18.4% against a 2030 target of 40%, while disclosing operational footprints across 151 countries and a workforce exceeding 46,000 individuals.

The submission was digitally signed by B. Adi Reddy, Company Secretary and Compliance Officer, on August 3, 2026. The disclosures cover general entity details, material risk assessments, and principle-wise performance indicators aligned with the National Guidelines on Responsible Business Conduct. M/s. Sharp & Tannan Associates provided reasonable assurance on specific identified sustainability information, including energy, water, greenhouse gas emissions, waste management, and employee safety metrics.

Operational and Workforce Overview

Aurobindo Pharma operates 31 manufacturing facilities under commercial operations, alongside 5 international plants and 57 offices globally. The company serves markets in 28 Indian states and union territories, plus 151 countries internationally, with exports contributing 91% of total turnover. The primary business activity involves the development, manufacture, and sale of Active Pharma Ingredients and Formulations, accounting for 100% of turnover.

As of March 31, 2026, the company employed 29,209 permanent employees and engaged 17,246 non-permanent workers. Women constitute 10% of permanent employees and 20% of workers. The Board of Directors includes 11% female representation. The company reported no fines, penalties, or imprisonment proceedings during the fiscal year.

Environmental Performance and Targets

The company consumed 1,70,250 MWh of renewable power in FY26, comprising 50,791 MWh from captive solar plants and 1,19,459 MWh purchased from associate companies. This represents an 18.4% share of total energy consumption. The firm aims to reach a 40% renewable energy share by 2030, with a baseline year of 2025. Additionally, Aurobindo targets a 25% reduction in carbon footprint (Scope 1 and 2) and 70% water conservation/restoration by 2030.

Waste management initiatives achieved 100% reuse or recycling of non-hazardous waste. For hazardous waste, 66% was co-processed, approaching the 2030 target of 70%. The company has achieved Zero Liquid Discharge status at four units: Apitoria Unit-1, Unit-2, Unit-3, and Unit-5. Total Scope 3 emissions were reported at 6,06,351 tCO2e, driven primarily by fuel and energy-related activities (3,64,215 tCO2e) and downstream transportation (1,26,833 tCO2e).

Material Risks and Governance

The report identifies energy management, climate change, and workforce wellbeing as material risks and opportunities. Rising energy costs and stringent regulatory targets pose cost-related risks, while energy efficiency initiatives offer potential savings. The company adheres to policies on Business Ethics, Human Rights, and Supplier Code of Conduct, extending these requirements to value chain partners. Approximately 77% of key starting material suppliers for finished dosage forms in India have been assessed against the Supplier Code of Conduct.

Corporate governance oversight is managed by the ESG and Sustainability Committee, chaired by Dr. M. Madan Mohan Reddy. The Audit Committee reviews internal audit reports covering these principles. The company confirmed compliance with applicable environmental laws and reported no significant adverse impacts from its value chain. CSR applicability is confirmed under Section 135 of the Companies Act, 2013, with a consolidated net worth of INR 37,883 Cr and turnover of INR 33,653 Cr.

aurobindo pharma delivered resilient financial performance in FY26, reporting a 2.2% year-on-year increase in standalone revenue to ₹111,717 million. The Hyderabad-based pharmaceutical giant saw its consolidated revenue grow by 6.1% to ₹336,531 million, underpinned by robust demand in European markets and strategic portfolio expansion. Despite headwinds in the US market, the company maintained EBITDA margins above 20%, reflecting disciplined cost management and operational efficiency. This growth trajectory reinforces Aurobindo’s position as the largest generic pharma company in the US by prescriptions dispensed and the third-largest listed Indian pharma company by revenue.

The Board of Directors declared an interim dividend of 400% (₹4.00 per equity share) during the year but did not recommend a final dividend for FY26. The company also completed a buyback of 5,423,728 equity shares for an aggregate value of ₹8,000 million, reducing paid-up capital to ₹58,08,01,623. These shareholder returns highlight management’s confidence in cash flow generation and long-term value creation amidst a complex global regulatory landscape.

Business Segment Performance

Geographic diversification remained a key driver of financial resilience, with 91% of revenues originating from international markets. Europe emerged as the standout performer, crossing the significant milestone of €1 billion in annual revenues. In contrast, the US business faced industry-wide pressures, resulting in a slight decline.

The Active Pharmaceutical Ingredients (API) business declined 6.4% to ₹40,469 million, reflecting softer demand in certain segments. However, the Antiretroviral (ARV) formulations segment posted strong growth of 33.5%, supported by the South Africa tender valued at over USD 90 million.

Financial Highlights

Aurobindo Pharma’s profitability metrics demonstrated stability despite mixed volume trends across regions. Profit Before Depreciation, Interest, Tax and Exceptional Items stood at ₹73,393 million, a 2.3% increase year-on-year. The company reported a Net Profit After Tax of ₹35,030 million, compared to ₹34,836 million in FY25. Diluted Earnings Per Share rose to ₹60.34 from ₹59.81 in the prior year.

Capital deployment focused on strengthening manufacturing infrastructure and backward integration. Total capital expenditure for FY26 was ₹3,058 million (USD ~340 million). Investments included new mammalian drug substance manufacturing capacity for biosimilars, with an incremental investment of USD 150–175 million planned for future phases.

What the Numbers Show

The divergence between US and European performance highlights the shifting dynamics in global generic markets. While the US faced pricing pressures and regulatory scrutiny, Europe benefited from portfolio expansion and reliable supply capabilities. The surge in ARV revenues underscores the company’s strategic importance in global health initiatives. Additionally, the consistent EBITDA margin above 20% indicates that Aurobindo is successfully leveraging scale and operational efficiencies to protect profitability even as revenue growth moderates in key markets like the US and APIs.