Aurobindo Pharma (AUROPHARMA) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenues of INR 7,979 crores (₹79,785.2 million) in Q3 FY25, up 8.5% year-on-year and 2.3% sequentially, driven by robust US, Europe, and high-growth market sales.

• EBITDA stood at INR 1,628 crores (20.4% margin), despite higher R&D costs and lower transient product sales; net profit was INR 846 crores (₹8,455.7 million), with net debt reduced to $8 million.

• Gross contribution reached INR 4,663 crores, with gross margins at 58.4%, up 130 bps year-on-year, supported by benign raw material prices.

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

• Net capex for the quarter was INR 106 crores (US$106 million), focused on capacity enhancements and new business development.

Financial highlights

• Formulation business grew 11% year-on-year to INR 6,973 crores, contributing 87% of total revenues; API business recorded INR 1,006 crores, 12.6% of consolidated revenue.

• US formulation revenues were $435 million, up from $421 million in Q2 FY25; generic US product revenues rose 4% year-on-year to $297 million.

• Europe formulation revenues grew 23% year-on-year to INR 2,121 crores (EUR 236 million), with growth markets revenue up 39% year-on-year to INR 873 crores (US$104 million).

• Net profit attributable to owners was ₹846 Cr, EPS ₹14.56; basic EPS for nine months was ₹44.25.

• R&D spend for the quarter was ₹450 Cr (5.6% of sales), up from ₹398 Cr YoY.

Outlook and guidance

• Confident of sustaining growth trajectory with robust and diverse product portfolio, capacity enhancements, and multiple upcoming launches, including biosimilars and CMO initiatives.

• 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.