Aurobindo Pharma , a leading Indian pharmaceutical company, has unveiled its ambitious growth plans for the European market. The company has set its sights on surpassing €1 billion in annual revenues from Europe by the fiscal year 2026 (FY26), signaling a strong focus on expanding its presence in the region.

Strong EBITDA Expectations

The pharmaceutical giant anticipates a robust EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) performance starting from the third quarter of the current fiscal year. This optimistic outlook is primarily driven by the company's Production Linked Incentive (PLI) project, a government initiative aimed at boosting domestic manufacturing in key sectors.

PLI Project Impact

Aurobindo Pharma projects significant benefits from its participation in the PLI scheme:

• Production Target: The company aims to achieve a production range of 7,000-8,000 tonnes.
• Incentive Projection: Based on this production target, Aurobindo Pharma estimates PLI incentives of approximately ₹150.00 crores.

Financial Outlook

Despite the ambitious revenue target for Europe, Aurobindo Pharma maintains a cautious yet positive overall financial outlook:

• EBITDA Margin: The company reaffirms its EBITDA margin outlook at 20-21% for FY26.
• Growth Projection: Aurobindo Pharma anticipates single-digit growth in the coming years.

Upcoming Investor Communication

Investors and analysts can expect more detailed information about the company's strategies and projections in the upcoming November call. This event will likely provide further insights into Aurobindo Pharma's plans to achieve its European revenue target and overall growth strategies.

The company's focus on the European market, coupled with its participation in the PLI scheme, demonstrates Aurobindo Pharma's commitment to expanding its global footprint while contributing to India's pharmaceutical manufacturing capabilities. As the company moves forward with these initiatives, stakeholders will be keenly watching how these strategies translate into tangible growth and market position strengthening in the coming years.

Aurobindo Pharma , a leading pharmaceutical company, has released its financial results for the first quarter, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth Amid Challenges

The company reported a consolidated revenue from operations of ₹7,868.00 crore for Q1, representing a 4% year-on-year increase from ₹7,567.00 crore in the same quarter last year. This growth was primarily driven by strong performances in Europe and Growth Markets, which helped offset challenges in the US market.

Profitability Under Pressure

Despite the revenue growth, Aurobindo Pharma experienced a decline in profitability:

• Net profit decreased by 10.2% year-on-year to ₹824.00 crore, compared to ₹918.00 crore in the same quarter of the previous year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) before forex and other income stood at ₹1,603.00 crore, a 1% decrease from the previous year.
• EBITDA margin contracted to 20.4% from 21.4% in the corresponding quarter of the previous year.

Segment Performance

Operational Highlights

• Filed 4 ANDAs (Abbreviated New Drug Applications) with the USFDA during the quarter.
• Received final approval for 14 ANDAs, including one that previously had tentative approval.
• Launched 15 products in the US market during the quarter.
• As of June 30, the company has cumulatively filed 865 ANDAs with the USFDA and received 704 final approvals and 29 tentative approvals.

Management Commentary

K. Nithyananda Reddy, Vice-Chairman and Managing Director of Aurobindo Pharma, commented on the company's performance: "We started the year steadily, with our European business maintaining strong growth momentum and our core US business showing resilience despite temporary challenges from destocking and seasonal dynamics. Our disciplined execution, operational initiatives, and recent US acquisition strengthens our commercial footprint and accelerates growth potential."

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹4.00 per equity share (face value ₹1.00) for the financial year.

Future Outlook

While facing challenges in the US market and API segment, Aurobindo Pharma's diversified portfolio and strong performance in Europe and Growth Markets demonstrate the company's resilience. The management's focus on operational initiatives and recent acquisitions suggests a strategic approach to navigate market dynamics and drive future growth.

Investors and analysts will be closely watching how Aurobindo Pharma addresses the profitability pressures and capitalizes on growth opportunities in the coming quarters.