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Informist, Wednesday, May 20, 2026

By Ruchira Kagita

MUMBAI – Aurobindo Pharma Ltd.'s top line-growth is likely to moderate in the March quarter as the lack of gRevlimid sales in the US market is seen dragging down its revenue. If the results are according to projections, this will be the slowest growth in the company's revenue in over three years. The company's sales from the US market will likely fall both on an on-year and sequential basis. Growth in sales from Europe and India markets is expected to be steady.

The company's consolidated net profit is expected to rise 7.5% on year to INR 9.71 billion and revenue is seen increasing 4% to INR 87.23 billion, according to an average of estimates from 10 brokerages.

The highest profit estimate was from Prabhudas Lilladher Pvt. Ltd. at INR 10.29 billion, indicating a nearly 14% growth. The lowest estimate for net profit was from Kotak Securities Ltd. at INR 9.08 billion, flat on year. Nuvama Wealth Management Ltd. expects the company's net profit to grow 13% on year due to "low depreciation."

The highest revenue estimate is INR 88.64 billion from Nuvama Wealth Management Ltd. The lowest estimate of INR 85.33 billion was from JM Financial Institutional Securities Pvt. Ltd. The difference between the highest and the lowest estimate for revenue growth is of nearly four percentage points. The recent depreciation in the rupee is likely to lend support to the company's top line growth.

When adjusted for contribution from gRevlimid, growth for Aurobindo Pharma is seen healthy, JM Financial said. In the three months leading up to February, the company's revenue from the US, excluding those from gRevlimid, rose 5.7% to $553 million, Nomura Equity Research said in its report, and these were driven by Estradiol vaginal inserts and Dasatinib tablets. The company's gRevlimid sales during the three months ended February fell over 95% on year to $2 million from $44 million a year ago, Nomura highlighted. Adjusted for gRevlimid sales, the company had said its overall sales rose 9% on year in the December quarter.

Most brokerages estimate the company's total US sales to be in the range of $414 million-$423 million in the March quarter, down 9.5-12.0% on year. In the March quarter a year ago, the company's US sales were at $470 million. Not just Aurobindo Pharma, all generics players which distributed gRevlimid and had significant exposure to the US will likely see lower sales in the quarter under review. Pharmaceutical companies' sales of gRevlimid were hit after the patent for the drug expired in January. Aurobindo Pharma will still see a lesser hit to its US sales due to the expiry of gRevlimid patent compared with its peers Dr. Reddy's Laboratories Ltd. and Cipla Ltd. For the company's sales from markets across the rest of the world, Kotak Securities eyes a growth of 13% on year in the reporting quarter.

Aurobindo Pharma's earnings before interest, taxes, depreciation, and amortisation are seen falling almost 1% on year to INR 17.79 billion in the quarter ended March, as per the average of estimates from nine brokerages. The pharmaceutical company's EBITDA is likely to be flat sequentially.

Over Jan-Mar, the company received approvals for Citalopram Hydrobromide capsules meant to treat depression, anti-bacterial Cefixime capsules, and for immunosuppressive drug Everolimus.

In the March quarter, the company said it received abbreviated new drug approvals for seven medicines and launched nine products in the US market.

The management's commentary on the company's plans to expand its business in the US, its progress on approvals for its biosimilars, and on the headway it made on product launches in Canada will be important to watch out for. The effect of the war in West Asia was limited in the March quarter, but it will be important to note what the top executives have to say on the impact of higher raw material and freight prices.

The US Food and Drug Administration had issued observations for facilities run by the company's wholly-owned subsidiary Eugia Pharma Specialities Ltd. The management of Aurobindo Pharma had earlier said that the inspections were merely procedural in nature and that the company was unlikely to face issues in responding to the US Food and Drug Administration. Investors would also await commentary on the inspections at the Eugia Pharma facilities.

For 2025-26 (Apr-Mar), Aurobindo Pharma's consolidated net profit is expected to be between INR 36.15 billion and INR 36.38 billion, according to two brokerages. Its net sales, meanwhile, are estimated between INR 334.78 billion and INR 335.89 billion. As for capital expenditure for FY27, the company does not see it exceeding INR 200 million.

Of the 10 brokerage reports on the company available with Informist, nine have a "buy" recommendation on the stock with an average target price of INR 1,436 and one has a "hold" stance. The Hyderabad-based pharmaceuticals company had reported consolidated net profit of INR 9.10 billion for the December quarter on revenues of INR 86.46 billion. Since then, the stock has risen 35%. Wednesday, shares of the company rose a bit to INR 1,517.50 on the National Stock Exchange. The pharmaceuticals major will report is March quarter earnings Thursday.

Following are the March quarter earnings estimates for Aurobindo Pharma from 10 brokerages in INR billion in descending order of net profit:

End

US$1 = INR 96.82

Edited by Akul Nishant Akhoury

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