Aurobindo Pharma (AUROPHARMA) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue for Q2 FY2026 reached ₹8,286 crore (₹82,857 million), up 6.3% year-over-year, driven by strong U.S., European, and growth market performance.

• EBITDA rose to ₹1,678 crore with a margin of 20.3%, reflecting operational efficiencies and stable gross margins.

• Net profit for the quarter was ₹848 crore (₹8,481 million), a 3.8% year-over-year increase.

• Free cash flow before dividend and buybacks was $57 million, with a net cash position of $170 million as of September 2025.

• Total comprehensive income for the quarter was ₹13,892 million, supported by operational and foreign currency translation gains.

Financial highlights

• Formulation business revenue grew 10% year-over-year to ₹7,325 crore, accounting for 88% of total revenue.

• API business contributed 12% of revenue at ₹961 crore, though it declined 16.9% year-over-year.

• U.S. revenues reached $417 million, with 6% quarter-on-quarter growth in injectables.

• European revenue grew 18% year-over-year to ₹2,480 crore (EUR 243 million).

• ARV formulation revenue surged 69% year-over-year to ₹325 crore.

• Gross margin improved to 59.7%, up 88 bps year-over-year.

• R&D expenditure was ₹414 crore, 5% of revenue, focused on biosimilars and specialty products.

• Reported EPS for the quarter was ₹14.61, a 4.4% increase year-over-year.

Outlook and guidance

• Confident in sustaining growth momentum, with volume expansion and stable pricing expected.

• U.S. site launches scheduled from January, with significant revenue contribution expected in FY 2027.

• Strategic focus on accelerating the post-2028 pipeline with high-potential biosimilars and at least three immunology and oncology biosimilar filings through FY27.

• OSG China facility on track for EBITDA break-even by Q3-Q4 FY 2026.

• Internal margin target of 20%-21% for FY 2026 reaffirmed.