Aurobindo Pharma Achieves Record FY26 Performance, Sets Higher Margin Targets

Aurobindo Pharma Limited announced its full-year financial results ending March 31, 2026, reporting its highest-ever annual revenue at ₹33,653 crore and EBITDA of ₹6,856 crore. In the fourth quarter of FY26, the company posted revenue of ₹8,853 crore, with an EBITDA of ₹1,801 crore and a net profit of ₹921 crore.

These record figures highlight Aurobindo Pharma's strong operational performance and growth capabilities. The company's guidance for FY27 EBITDA margins to surpass 21% signals positive future profitability. Additionally, Aurobindo aims to achieve $2 billion in revenue from the US market, signaling ambitious expansion plans in a crucial region.

The company's FY26 performance demonstrated resilience, even with reduced sales from Revlimid. The API business showed significant sequential growth, increasing by 25% in Q4 FY26 to ₹1,208 crore. This growth was driven by successful backward integration, particularly in Pen-G production, which reached over 10,000 MT with 80% utilization.

The company's immediate focus is on achieving the projected EBITDA margin of over 21% in FY27. A key strategic move is the pending acquisition of Lannett, expected to close in Q2 FY27, which aims to strengthen its US market presence. External sales of Pen-G have also begun, contributing over ₹100 crore in the last quarter and validating the backward integration strategy.

Investors should remain aware of potential margin pressures from rising solvent and raw material prices. The competitive landscape in the biosimilar market, with numerous players, presents a long-term margin risk. Any delays in the Lannett acquisition could also affect near-term growth objectives.

While specific peer performance for FY26 is not detailed here, Aurobindo's strategic goals of increasing EBITDA margins and expanding its US footprint position it competitively against other major Indian pharmaceutical firms with substantial US operations and complex product portfolios.

Key Metrics for FY26:

• Revenue: ₹33,653 crore
• EBITDA: ₹6,856 crore
• EBITDA Margin: 20.4%
• Q4 FY26 Revenue: ₹8,853 crore
• Q4 FY26 EBITDA: ₹1,801 crore
• Q4 FY26 Net Profit: ₹921 crore
• FY26 API Revenue: ₹4,047 crore
• Q4 FY26 API Revenue: ₹1,208 crore
• Q4 FY26 R&D Expenditure: ₹400 crore
• Management guidance for FY27 EBITDA Margin: Over 21%
• US Market Revenue Target: $2 billion (near term)
• Lannett Acquisition Expected Closure: Q2 FY27

Investors will be tracking the successful integration of the Lannett acquisition, the company's ability to maintain its margin guidance despite cost pressures, and continued growth in its API segment. Progress toward the $2 billion US revenue target will also be a key indicator of success.