Aurobindo Pharma Limited announced that its wholly owned step-down subsidiary, Agile Pharma BV, has incorporated a new entity in France named Arrow Pharma Production SAS. The incorporation was completed on May 21, 2026, as disclosed to the stock exchanges on May 22, 2026. The new entity will operate within the pharmaceuticals industry, specifically engaged in the manufacturing of generic formulations.

The establishment of Arrow Pharma Production SAS is intended to expand the manufacturing capabilities of generic formulations in France. Agile Pharma BV, based in the Netherlands, holds 100% of the share capital in the newly incorporated company. Consequently, Arrow Pharma Production SAS becomes a wholly owned step-down subsidiary of the listed entity.

Incorporation Details

The key details regarding the incorporation and ownership of the new subsidiary are outlined below:

Financial and Shareholding Structure

The subscription to the share capital was made entirely through cash consideration. The authorized capital of the new subsidiary stands at 100,000 EUR, divided into 100,000 shares with a nominal value of 1 EUR each. Aurobindo Pharma, through its step-down subsidiary Agile Pharma BV, maintains 100% control over the new entity. No specific governmental or regulatory approvals were required for the incorporation of this subsidiary.

Aurobindo Pharma has reported its audited standalone and consolidated financial results for the fourth quarter and fiscal year ended March 31, 2026. The Board of Directors approved the results during its meeting held on May 21, 2026. Following the announcement, the company published the financial results in newspapers, including Business Standard and Nava Telangana, on May 23, 2026. Aurobindo Pharma has also set margin expectations above 21% for FY27, according to CNBC TV18.

Q4 Financial Highlights

For the quarter ended March 31, 2026, the company reported a consolidated revenue of ₹8,853 crore, representing a 5.6% increase year-on-year from ₹8,382 crore in the corresponding quarter of the previous year. Consolidated net profit rose by 2% to ₹921 crore compared to ₹903 crore in Q4 FY25. EBITDA for the quarter stood at ₹1,801 crore, a marginal increase of 0.5% year-on-year, with an EBITDA margin of 20.3%.

The following table highlights the key operational metrics for the quarter:

Annual Performance

For the fiscal year ended March 31, 2026, Aurobindo Pharma reported a consolidated net profit of ₹3,503 crore, a slight increase from ₹3,484 crore in the previous year. Revenue from operations for the year rose to ₹33,653 crore, compared to ₹31,724 crore in FY25, marking a 6.1% growth. The company reported basic and diluted earnings per share of ₹60.34 for the year.

Segment and Operational Updates

Revenue growth was driven by strong performance in Europe, which grew 30.2% year-on-year to ₹2,795 crore, and Growth Markets, which increased 24.7% to ₹980 crore. The US business reported revenue of ₹3,543 crore, a decline of 13% year-on-year, attributed to seasonality and lower transient product sales. The API segment recorded revenue of ₹1,208 crore, up 12.9% year-on-year.

During the quarter, the company received approval for 9 ANDAs and launched 12 products in the US market. Net Capex for the quarter was $82 million, primarily directed towards capability enhancements and new business developments. The company maintained a strong net cash position, with Net Cash (including investments) standing at approximately $317 million as on March 31, 2026.

FY27 Margin Outlook

Looking ahead, Aurobindo Pharma has set margin expectations above 21% for FY27, as reported by CNBC TV18. This guidance comes on the back of the company's FY26 EBITDA margin of 20.3% in Q4, and reflects management's confidence in improving operational efficiency and business mix going forward.