Aurobindo Pharma Reports 4% Revenue Growth in Q1 FY26, Resumes Pen-G Plant Operations

1 min read     Updated on 08 Aug 2025, 12:36 PM
scanxBy ScanX News Team
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Overview

Aurobindo Pharma's consolidated revenues increased 4% YoY to ₹7,868.00 crores in Q1 FY26. EBITDA stood at ₹1,603.00 crores with a 20.4% margin. U.S. Formulations declined 4%, while European Formulations grew 9%. Growth Markets and ARV Formulations saw 9% and 55% growth respectively. API business declined 16%. The company launched 15 new products in the U.S., filed 4 ANDAs, and received 14 approvals. Net cash position improved to $140.00 million, and gross debt reduced to $884.00 million. Aurobindo announced the strategic acquisition of Lannett and received biosimilar approvals in Europe. The company maintains its EBITDA margin guidance of 20-21% for FY26.

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*this image is generated using AI for illustrative purposes only.

Aurobindo Pharma , a leading pharmaceutical company, has reported a 4% year-on-year increase in consolidated revenues for the first quarter of fiscal year 2026, reaching ₹7,868.00 crores. The company's EBITDA stood at ₹1,603.00 crores, maintaining a healthy margin of 20.4%.

Key Financial Highlights

Metric Value YoY Change
Consolidated revenues ₹7,868.00 crores 4%
EBITDA ₹1,603.00 crores -
EBITDA margin 20.4% -
PAT ₹824.00 crores -

Business Segment Performance

U.S. Formulations

  • Revenues declined 4% YoY to $408.00 million
  • Primarily due to reduced gRevlimid sales and customer destocking effects

European Formulations

  • Strong 9% YoY growth
  • Revenues reached €241.00 million

Growth Markets

  • 9% YoY increase to ₹772.00 crores ($90.00 million)

ARV Formulations

  • Impressive 55% YoY growth to ₹355.00 crores ($41.00 million)

API Business

  • Declined 16% YoY to ₹916.00 crores
  • Impacted by pricing pressures

Operational Highlights

  • Pen-G manufacturing plant resumed operations on July 1st after securing renewal of consent from Andhra Pradesh Pollution Control Board
  • Launched 15 new products in the U.S., filed 4 ANDAs, and received 14 approvals
  • Net cash position improved to $140.00 million as of June 30, 2025
  • Gross debt reduced to $884.00 million from $930.00 million at the end of March 2025

Strategic Developments

  • Announced strategic acquisition of Lannett, subject to FTC approval, expected to close within 8-12 months
  • Biosimilar approvals received in Europe, with commercial supplies beginning in Q3-Q4 FY26
  • Continued focus on expanding manufacturing footprint and enhancing compliance and automation

Management Commentary

Santhanam Subramanian, CFO of Aurobindo Pharma, stated, "We remain optimistic about sustaining our growth momentum. Our confidence is supported by expected volume expansion, continued product launches, and a stable pricing environment, especially in the U.S. and Europe."

The company maintains its EBITDA margin guidance of 20-21% for FY26, reflecting confidence in its operational efficiency and growth strategies.

Outlook

Aurobindo Pharma is well-positioned for future growth with its diverse product portfolio, strategic acquisitions, and focus on key markets. The resumption of the Pen-G plant operations and the ramp-up of new manufacturing facilities are expected to contribute positively to the company's performance in the coming quarters.

As the company continues to navigate challenges in the global pharmaceutical landscape, its strong financial position and strategic initiatives provide a solid foundation for sustained growth and value creation for stakeholders.

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Aurobindo Pharma Sets Ambitious €1 Billion Europe Revenue Target for FY26

1 min read     Updated on 06 Aug 2025, 09:12 AM
scanxBy ScanX News Team
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Overview

Aurobindo Pharma aims to exceed €1 billion in annual revenues from Europe by FY26. The company expects strong EBITDA performance from Q3, driven by its Production Linked Incentive (PLI) project. Aurobindo targets 7,000-8,000 tonnes production under PLI, estimating incentives of ₹150.00 crores. The company maintains an EBITDA margin outlook of 20-21% for FY26 and projects single-digit growth in coming years. More details will be shared in the November investor call.

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*this image is generated using AI for illustrative purposes only.

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.

Historical Stock Returns for Aurobindo Pharma

1 Day5 Days1 Month6 Months1 Year5 Years
+0.18%-4.26%-7.18%-9.04%-28.58%+10.50%
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