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Informist, Thursday, May 21, 2026

By Eshitva Prakash

MUMBAI – Aurobindo Pharma Ltd.'s consolidated net profit inched up in the March quarter, missing analysts' estimates by a whisker. Its revenue grew ahead of expectations on the Street. However, this was the slowest year-on-year rise in quarterly revenue and net profit in three quarters.

For the quarter ended March, the pharmaceutical company reported a consolidated net profit of INR 9.21 billion, slightly lower than analysts' projection of INR 9.71 billion and up just 2% on year. Its revenue for the first three months of 2026 rose over 5% to INR 88.53 billion, barely higher than the consensus view of INR 87.23 billion.

The company's total expenditure rose over 7% to INR 76.77 billion, driven by a 12.5% surge in costs classified under 'other expenses' to INR 22.49 billion. Its purchase of stock-in-trade rose over 46% to INR 9.32 billion. Meanwhile, the cost of materials consumed eased 10.5% on year to INR 25.05 billion. The company's tax outgo reduced 14.5% to INR 3.70 billion in the quarter.

Aurobindo Pharma's December quarter's total formulations revenue rose almost 5% on year to INR 76.46 billion. The company's operations in the US were hit during the reporting quarter, with revenue from US formulation falling 13% on year to INR 35.43 billion, which the company attributed to seasonality factors. Around 40% of the company's consolidated revenues came from this region.

Its Europe business saw a sharp improvement, with formulation revenue from this region rising over 30% on year to INR 27.95 billion. Revenue from its growth markets, which comprise South Africa, Indonesia, China, India, Brazil and Canada, rose almost 25% to INR 9.80 billion. India formulations, which is part of the growth markets segment, registered a revenue of INR 760 million, up from INR 740 million from the December quarter. Aurobindo Pharma started its India formulations business in 2022 and is working to scale up the business.

"We are encouraged by our performance for the quarter and the year, reflecting the resilience of our business model and the strength of our extensive product portfolio," Nithyananda Reddy, vice-chairman and managing director of the company said. "Consistent volumes coupled with improved operating efficiencies, and disciplined execution have contributed positively to our results," he said. "With ongoing investments in capacity expansion and the stabilisation of recently commercialised facilities, we remain confident in our ability to support sustainable growth and create long-term value for our stakeholders."

Aurobindo Pharma's active pharmaceutical ingredients business revenue for the quarter rose almost 13% on year to INR 12.08 billion. This segment accounts for nearly 14% of the company's total sales. The company's anti-retroviral formulations business, which is mainly tender-driven, reported a 6.4% on-year revenue growth to INR 3.28 billion.

The company's spending on research and development for the quarter was at INR 4.00 billion, which was 4.5% of the consolidated revenue. The company said it incurred a net capital expenditure of $82 million, which it mainly used for enhancing capabilities and developing new businesses. Aurobindo Pharma said it generated a free cash flow of $35 million during the March quarter.

Earnings before interest, tax, depreciation, and amortisation prior to the research and development expense were INR 21.65 billion, down nearly 2% on year. Its EBITDA margin before this expense contracted 182 basis points on year to 24.5%. Its consolidated EBITDA rose just 0.5% on year to INR 18.01 billion, but was higher than a consensus projection of INR 17.79 billion. Its EBITDA margin, however, shrunk to 20.3% from 21.4% in the year-ago quarter.

For 2025–26 (Apr-Mar), the company's net profit rose 0.5% on year to INR 35.05  billion. Its revenues in the financial year rose over 6% to INR 336.53 billion. On Thursday, shares of the company ended nearly 2% higher at INR 1,546.70 on the National Stock Exchange.  End

US$1 = INR 96.20

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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