Aurobindo Pharma delivered a strong financial performance in the third quarter of FY26, demonstrating sustained business momentum across its global operations. The pharmaceutical company reported consolidated revenue growth of 8.4% year-on-year, reaching Rs. 8,646 crores, while maintaining robust profitability metrics.

Financial Performance Highlights

The company's financial metrics reflected strong operational execution during the quarter. EBITDA stood at Rs. 1,773 crores with a margin of 20.5%, representing a 9% year-on-year growth. Net profit for the period reached Rs. 910 crores, after accounting for a one-time cost of Rs. 65 crores due to changes in labor code amendments.

Business Segment Performance

Formulations Business

The formulation business emerged as the primary growth driver, contributing Rs. 7,683 crores and representing approximately 89% of total consolidated revenue. This segment achieved a 10% year-on-year growth, supported by strong performance across multiple geographic markets.

European Operations Lead Growth

European business maintained exceptional momentum, delivering 27% year-on-year revenue growth to Rs. 2,703 crores (EUR 261 million). The company's consistent execution across key European markets, including France, Portugal, Germany, and Netherlands, all showed double-digit growth rates. Management expressed confidence in exceeding EUR 1 billion in annual European revenue by the close of FY26.

US Market Performance

US formulation revenue reached USD 420 million during the quarter. Excluding generic Revlimid, the US oral solid business remained stable, demonstrating resilience through its diversified product portfolio. The US injectable sales segment showed particular strength with 17% year-on-year growth. The company launched 9 new products and received 7 approvals during the quarter, reflecting robust pipeline performance.

Growth Markets and ARV Formulations

Revenue from growth markets remained stable at Rs. 865 crores (USD 97 million), supported by steady volumes and a diversified commercial base across strategic markets. The ARV formulation segment achieved Rs. 376 crores (USD 42 million) with 22% year-on-year growth, driven by higher volumes and new tender wins.

Strategic Developments

Pen-G Facility Progress

The company's Pen-G manufacturing facility showed significant operational improvements, with production ramping up to approximately 10,000 metric tonnes on an annualized basis. The Government of India's introduction of a one-year minimum import price (MIP) for Pen-G, 6-APA, and Amoxicillin represents a positive catalyst for the company's antibiotic manufacturing operations.

Manufacturing and Regulatory Updates

The Dayton facility successfully transitioned into commercial phase with manufacturing underway, expected to contribute significantly to revenues from FY27 onwards. The Raleigh facility remains on track pending regulatory clearance. The company's China OSD facility continues progressing toward 2 billion units annual capacity, supported by EU approval for 10 products and 3 local product approvals.

Operational Metrics

R&D expenditure stood at Rs. 409 crores, representing 5% of total revenues, reinforcing the company's commitment to building a robust pipeline of high-value products. Net capex for the quarter reached USD 79 million, aligned with strategic priorities of enhancing manufacturing capabilities and strengthening compliance. The company generated net cash inflow of USD 118 million during the quarter, improving its net cash position to USD 251 million as of December 31, 2025.

Future Outlook

Management expressed confidence in sustaining growth momentum across all business segments, supported by the company's diversified operating model and expanding manufacturing footprint. The company targets achieving EBITDA margins on the higher side of 20% to 21% for FY26, with several growth initiatives providing strong earnings visibility over the medium to long term.

Aurobindo Pharma Limited announced on February 13, 2026, that its wholly owned step-down subsidiary Acrotech Biopharma Inc. has received US FDA approval for ADQUEY™ (difamilast 1%) ointment. This approval marks a significant milestone in dermatology treatment, offering a new therapeutic option for mild-to-moderate atopic dermatitis in adults and pediatric patients aged 2 and older.

FDA Approval Details

The US Food and Drug Administration has approved the New Drug Application (NDA) for ADQUEY, a novel, non-steroidal, topical phosphodiesterase 4 (PDE4) inhibitor. This approval was achieved through collaboration with Otsuka Pharmaceutical Co., Ltd., which discovered and developed difamilast and licensed it to Acrotech in the United States since 2021.

Clinical Trial Results and Safety Profile

FDA approval was supported by multiple studies including pivotal Phase III controlled trials. The clinical data demonstrated that a significantly greater proportion of patients treated with ADQUEY achieved Investigator's Global Assessment (IGA) success compared to vehicle (placebo) after four weeks of treatment.

The safety profile remained consistent across all three trials, with the most common adverse reaction being nasopharyngitis at 6%. Less common adverse reactions (< 1%) included application site folliculitis, contact dermatitis, application site rash, and molluscum contagiosum.

Market Impact and Leadership Commentary

Ashish Anvekar, President of Acrotech Biopharma Inc., emphasized the significance of this approval: "The approval of ADQUEY represents a significant milestone in our commitment to advancing dermatology care. Patients and clinicians have long sought effective, long-term, non-steroidal treatments that can manage both the inflammation and pruritus associated with eczema."

This approval addresses an important unmet medical need, as atopic dermatitis affects millions of Americans. The condition, also called eczema, is a common and chronic condition that causes itchy, dry, and inflamed skin, usually beginning in childhood but potentially starting at any age.

About the Companies

Actotech Biopharma Inc. serves as a step-down subsidiary of Aurobindo Pharma Ltd and operates as a global platform to commercialize innovative proprietary medications. The company focuses on launching scientifically advanced products to address unmet needs and deliver value to patients and healthcare stakeholders.

Aurobindo Pharma Limited is an integrated global pharmaceutical company headquartered in Hyderabad, India, with operations spanning over 150 countries. The company operates 31 manufacturing and packaging facilities approved by leading regulatory agencies including USFDA, UK MHRA, EDQM, Japan PMDA, WHO, and Health Canada.