Aurobindo Pharma (AUROPHARMA) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached ₹7,796 Cr, up 8% YoY, with EBITDA at ₹1,566 Cr and net profit at ₹817 Cr, driven by strong U.S. and European sales and expansion in growth markets.

• Base business revenue grew 7% sequentially, with a base EBITDA margin around 21%.

• The Board completed a buyback of 5.1 million equity shares for ₹9,302.4 million ($111 million) in Q2 FY25.

• US market accounted for 45.3% of consolidated revenue; 14 product launches and 8 ANDA approvals in the quarter.

Financial highlights

• Formulation business grew 11% YoY to ₹6,640 Cr, contributing 85% of revenue; API business was flat at ₹1,156 Cr (15% of revenue).

• US formulation revenue was $421 million (+3% YoY, -1% QoQ); oral generics in the US up 9% YoY to $289 million.

• Europe revenue grew 19% YoY to ₹2,105 Cr (EUR 229 million), accounting for 27% of consolidated revenue.

• Growth market revenue up 44% YoY to ₹812 Cr; ARV formulation business down 23% YoY to ₹193 Cr.

• Gross margin improved to 58.8% from 55.2% YoY; gross contribution at ₹4,586 Cr.

Outlook and guidance

• Confident of maintaining growth momentum with increased volumes, new launches, and stable pricing.

• Targeting EBITDA margin of 21%-22% for FY25; expect H2 to outperform H1.

• Advancing biosimilars, peptides, vaccines, and CMO initiatives, with multiple launches and regulatory submissions planned through 2025.

• Large-scale CMO facility expected to be commissioned in 2026, with first supplies in 2028.

• Penicillin G facility expected to achieve breakeven by Q4 FY25 and contribute positively from FY26.