Aurobindo Pharma (AUROPHARMA) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue for Q1 FY26 grew 4% year-on-year to INR 7,878 crores, driven by strong performance in Europe and growth markets, with stable U.S. business and incremental ERV segment contributions.

• EBITDA for Q1 FY26 was INR 1,603 crores (20.4% margin), reflecting stable gross margins and operational efficiencies.

• Net profit after tax (consolidated) for Q1 FY26 was INR 8,242 million, down 10.2% year-on-year, impacted by lower U.S. sales and increased overheads.

• Formulation business grew 7% year-on-year to INR 6,953 crores, led by Europe and emerging markets, accounting for 88% of total revenue.

• API business declined 16% year-on-year due to pricing pressures and geopolitical factors.

Financial highlights

• Gross margin remained stable at 58.8%, supported by favorable product mix and lower raw material costs.

• Net cash position improved to $140 million as of June 30, 2025.

• Gross debt reduced to $884 million from $930 million at March 2025, reflecting ongoing deleveraging.

• Free cash flow from business was $115 million after capex and dividends.

• Basic EPS (consolidated) for Q1 FY26 was 14.20, a 9.5% decline year-on-year.

Outlook and guidance

• Confident of sustaining growth momentum, supported by volume expansion, new launches, and stable pricing in the U.S. and Europe.

• Targeting internal EBITDA margin of 20–21% for FY 2026.

• First commercial biosimilar supplies to EU markets expected by Q3/Q4 FY26.

• No further greenfield CAPEX planned in the near to midterm; focus on maintenance and capacity enhancements.

• Multiple biosimilar filings and regulatory submissions planned in FY26, including first US FDA submission.