Aurobindo Pharma (AUROPHARMA) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue in Q3 FY25 at INR 7,979 crores (₹79,785.2 million), up 8.5% year-on-year, driven by robust US and European sales, and expansion in high-growth markets.

• EBITDA margin stood at 20.4% despite higher R&D costs and lower transient product sales; net profit was INR 846 crores (₹8,455.7 million), with EPS of ₹14.56.

• Significant improvement in cash flows and net debt reduction, with net debt at $8 million or US$84 million by December 2024.

• The Board completed a buyback of 5.1 million shares for ₹9,302.4 million, reducing paid-up equity capital.

• Major acquisitions included Purple Bellflower (Pty) Ltd, Ace Laboratories Ltd, and GLS Pharma Ltd becoming wholly owned subsidiaries.

Financial highlights

• Revenue from operations was INR 7,979 crores (₹79,785.2 million), up 8.5% year-on-year; gross margin improved to 58.4%, up 130 bps year-on-year.

• EBITDA was INR 1,628 crores, up 1.6% year-on-year; net profit margin for Q3 FY25 was approximately 10.6%.

• US formulation revenues were $435 million, up from $421 million in Q2 FY25; Europe segment revenue was EUR 236 million, up 23% year-on-year.

• Growth markets revenue increased 39% year-on-year to INR 873 crores (US$104 million); ARV business up 71.2% year-on-year to US$36 million.

• R&D spend for the quarter was ₹450 crores (5.6% of sales), up from ₹398 crores year-on-year.

Outlook and guidance

• Confident of sustaining growth trajectory with robust product portfolio, capacity enhancements, and multiple upcoming launches, including three biosimilar launches in the July quarter.

• On track to achieve EBITDA margin guidance of 21%-22% for FY25; next quarter expected to be stronger due to increased transient sales and operational efficiencies.

• Large-scale CMO facility for mammalian cell culture to be commissioned in 2026, with first supplies in 2028.

• Statutory auditors issued an unmodified review conclusion, indicating no material misstatements.