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 operations.

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

• API business contributed INR 961 crore (12% of revenue), reflecting current market dynamics and a 16.9% year-over-year decline.

• Gross margin improved to 59.7%, up 88 bps year-over-year, supported by favorable raw material prices and business mix.

• R&D expenditure was ₹414 crore, 5% of total 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, supported by volume expansion, stable pricing, and a robust biosimilars pipeline.

• U.S. site to contribute significant revenues in FY 2027; European business expected to maintain robust growth.

• Plans for at least three immunology and oncology biosimilar filings through FY27.

• Pen-G facility ramp-up, biosimilar commercialization, and biologic CMO progress to drive growth over the next two years.

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