Aurobindo Pharma Reports Q2 Profit of Rs 1,124 Cr

Revenue grew by 23.9% to Rs 10,263 Cr while net profit surged 32.6% to Rs 1,124 Cr.

Reader Takeaway: Strong operational gains and US growth drive performance, though brokerages suggest current prices already reflect these upsides.

What just happened

Aurobindo Pharma has delivered a robust performance for the second quarter of FY27. The company's net profit rose to Rs 1,124 Cr, supported by a 23.9% increase in net sales to Rs 10,263 Cr. EBITDA margins improved by 76 basis points year-on-year, landing at 21.0%.

Why this matters

The company’s growth is anchored by its US business, which surged 25.2% to Rs 4,555 Cr. This success was fueled by the integration of Lannett, an aggressive ramp-up in injectables, and the launch of 10 new products, including significant entries like gAdvair and the NCE ADQUEY. Furthermore, international operations showed maturity, with the China OSD facility reaching EBITDA breakeven.

Outlook and Guidance

Management remains confident in its FY27 outlook, projecting double-digit consolidated revenue growth. The company aims to maintain EBITDA margins above 21%, with absolute EBITDA expected to surpass Rs 8,000 Cr for the year as it continues to pivot toward high-value segments like biosimilars and peptides.

Broker View

Axis Securities has maintained a 'Hold' recommendation on the stock. While they raised their target price to Rs 1,830 from the previous Rs 1,600, they believe the current market price of Rs 1,785 effectively discounts the company's recent operational milestones.

Risks to watch

Investors should monitor potential USFDA inspection outcomes, as any negative regulatory observations could hamper momentum. Additional pressures include intensifying competition in the injectable drug market and potential execution delays in the company's ambitious biosimilars pipeline.