Aurobindo Pharma (AUROPHARMA) Q1 26/27 earnings summary

Executive summary

• Consolidated revenues rose 16.3% year-over-year to INR 9,150 crore (91,503.5 million), driven by broad-based growth across all business areas and strong US performance from volume gains and new launches.

• Operating EBITDA reached INR 1,924 crore (margin 21.0%), up 20% year-over-year, excluding a one-time lease receivable derecognition impact.

• Net profit after tax rose to INR 1,032 crore (10,320.3 million), a 25.2% increase year-over-year, with EPS at 17.86, up from 14.20.

• Lannett acquisition completed, strengthening the U.S. platform and expanding presence in complex and controlled substances.

• Free cash flow of $98 million generated, maintaining a net cash position of $42 million after major acquisition and buyback outflows.

Financial highlights

• Revenue from operations grew 16.3% year-over-year to INR 9,150 crore; gross profit increased 19.3% to INR 5,523 crore.

• Gross margin improved to 60.4% (up 153 bps year-over-year); operating EBITDA margin rose to 21.0%.

• Net profit attributable to owners was INR 1,033 crore, up 25.2% year-over-year; reported EPS increased to 17.86.

• U.S. revenue increased 8.1% year-over-year to INR 3,770 crore; 10 new products launched, 9 ANDAs filed, 10 final approvals received.

• European revenues reached EUR 267 million, up 11% year-over-year in constant currency; Growth markets revenue surged 38% year-over-year to INR 1,063 crore.

Outlook and guidance

• FY 2027 guidance reiterated: double-digit revenue growth, EBITDA margin above 21%, and absolute EBITDA exceeding INR 8,000 crore.

• Strategic focus on high-value businesses, complex generics, specialty pharmaceuticals, injectables, biologics, and CDMO services.

• R&D expenses expected to remain at 4% of revenue, with a slight decrease in development costs as clinical studies conclude.

• Strategic investments in manufacturing capacity and pipeline to sustain growth into 2030.

• Biosimilars and biologics contract manufacturing expansion underway, with new filings and commercial launches planned in major markets.