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Informist, Mon, Aug. 3, 2026

By Narayana Krishna

HYDERABAD - Strong growth in the European and rest-of-the-world markets is likely to support Aurobindo Pharma Ltd.'s earnings for the June quarter. The absence of sales of generic cancer drug Revlimid in the US may weigh on the segment; however, growth in the injectables portfolio is expected to partly offset the impact, analysts said.

Aurobindo Pharma is expected to report 19% year-on-year and 6% quarter-on-quarter increase in its consolidated net profit for the June quarter to nearly INR 10 billion, according to the average of estimates from 11 brokerages. The highest estimate for the company's bottom line is nearly INR 10.5 billion from Elara Securities (India) Pvt. Ltd. The lowest estimate is INR 8.8 billion from Axis Securities Ltd.

The company's top line is expected to rise 14% on year to INR 89.6 billion, the estimates show. This would mean a growth of about 1% on a sequential basis. Nuvama Wealth Management Ltd. has the highest estimate for net sales at INR 92.6 billion while Axis Securities has the lowest estimate at INR 83.9 billion. Aurobindo Pharma will announce its June-quarter earnings Wednesday.

EUROPE BOOST

Growth in Europe sales is expected to remain a key driver during the quarter for Aurobindo Pharma, supported by expanded product offerings and steady demand. Analysts estimate Europe sales will grow between 20% and 26% on year for the quarter.

Kotak Securities Ltd. expects growth to be led by higher biosimilars sales, while ICICI Securities Ltd. attributes the momentum to strong traction across key markets. Rest-of-the-world markets are also expected to see healthy growth, with estimates indicating an increase of around 15% on year.

Aurobindo Pharma's US business is likely to have remained subdued in the June quarter on a year-on-year basis due to the absence of the generic cancer drug, though trends on a sequential basis are relatively stable.

Estimates indicate Aurobindo Pharma's June quarter US sales may decline by up to 3% on year, while rising up to 3% on quarter. HDFC Securities expects price erosion in the base portfolio and the absence of the generic Revlimid to weigh on performance, while Kotak Securities sees some support from sequential growth in injectables.

MARGINS

Aurobindo Pharma's June quarter earnings before interest, tax, depreciation and amortisation margin is expected to remain largely stable, with estimates in the range of 19.9% to 21.1%. Kotak Securities expects margin expansion supported by improvement in gross margins and operating leverage while HDFC Securities Ltd. and Motilal Oswal Financial Services Ltd. flag pressure from higher input and freight costs and the absence of the high-margin Revlimid in the US.

Aurobindo Pharma is expected to report nearly 15% on year and a little over 2% sequential rise in its EBITDA at INR 18.4 billion, according to the average of estimates of 11 brokerages. Growth in EBITDA is expected to be broadly in line with revenue, supported by strong performance in Europe and other markets, analysts said. The estimates ranged from INR 17.3 billion to INR 19.1 billion.

Key issues that market participants will watch for include trends in the US business, progress in ramp-up of the penicillin-G project at Kakinada, integration of the acquired US company Lannett Inc., and regulatory updates for key manufacturing facilities, including the company's injectable unit Eugia III. Developments in biosimilars, contract development and manufacturing operations, and the China facility will also be tracked.

Monday, shares of Aurobindo Pharma closed at INR 1,554.70 apiece on the National Stock Exchange, down 1.6% from Friday. The shares are up nearly 1% since the company detailed its March quarter earnings. Of the 10 research reports on the company available with Informist, eight have a "buy" recommendation on the stock with an average price target of INR 1,682. Two have a "hold" recommendation with a target price of INR 1,532.

Following are the Apr-Jun earnings estimates for Aurobindo Pharma Ltd. from 11 brokerage firms, in descending order of the net profit estimate, in INR billion:

End

US$1 = INR 95.33

Edited by Deepshikha Bhardwaj

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