Aurobindo Pharma delivered solid Q3 FY26 results, with consolidated revenue up 8.4% YoY to ₹8,646 Cr and net profit rising 7.6–8% to ₹910 Cr, led by strong Europe growth and stable US formulations despite some transient product softness.
Aurobindo Pharma Q3 FY26 – Key Numbers
-
Consolidated:
- Revenue: ₹8,646 Cr (+8.4% YoY).
- EBITDA: ₹1,773 Cr (+9% YoY), margin 20.5% (+11 bps YoY).
- Net profit: ₹910 Cr (+7.6–8% YoY).
- EPS: ₹15.67 (+7.7% YoY).
- Standalone:
- Revenue: ₹2,747 Cr (-5.4% YoY).
- Net profit: ₹582 Cr (+23.3% YoY), EPS ₹10.02.
- Cash position: Net cash $251 Mn.
Segment Performance Breakdown
|
Segment |
Revenue (₹ Cr) |
YoY Growth |
% of Total |
|
US Formulations |
3,739 ($420 Mn) |
+2.2% |
43.2% |
|
Europe Formulations |
2,703 |
+27.4% |
31.3% |
|
API |
963 |
-4.3% |
11.1% |
|
Growth Markets |
865 |
Flat |
10.0% |
|
ARV Formulations |
376 |
+22.4% |
- |
Pipeline: 7 new USFDA ANDA approvals (incl. 2 final from tentative); launched 9 US products; R&D spend ₹409 Cr (4.7% of sales); biosimilars targeting $50 Bn markets by 2032 (denosumab, omalizumab filings 2026).
Strengths
- Geographic diversification pays off: Europe +27.4% YoY offsets modest US (+2.2%) and API dip; ARV +22.4%.
- Margin stability: EBITDA margin holds at 20.5% (+11 bps YoY) amid pricing pressures.
- Pipeline momentum: 7 USFDA approvals, 9 US launches; strong biosimilar pipeline for high-value targets.
- R&D commitment: ₹409 Cr spend (4.7% sales) supports complex generics/biosimilars entry.
- Balance sheet strength: Net cash $251 Mn enables capex, acquisitions, dividends.
Risks
- US growth slowdown: Modest +2.2% amid competition, pricing erosion in generics.
- API revenue decline: -4.3% YoY signals headwinds in active ingredients segment.
- Standalone revenue dip: -5.4% YoY raises questions on core operations efficiency.
- Regulatory hurdles: USFDA scrutiny, biosimilar approval delays possible.
- Forex/macro sensitivity: 43% US revenue exposed to USD/INR volatility.
FAQs
1. What was consolidated revenue growth?
8.4% YoY to ₹8,646 Cr, driven by Europe (+27.4%) and stable US ($420 Mn).
2. Net profit figure?
₹910 Cr (+7.6–8% YoY); EBITDA ₹1,773 Cr (20.5% margin).
3. US business performance?
Revenue ₹3,739 Cr (+2.2% YoY, 43.2% total); 7 ANDA approvals, 9 launches.
4. Europe and other segments?
Europe ₹2,703 Cr (+27.4%); ARV +22.4%; API -4.3%; Growth Markets flat.
5. Pipeline highlights?
Biosimilars: denosumab (BP16), omalizumab (BP11) EU/US filings 2026; targeting $50 Bn markets by 2032.
6. Buy after Q3?
Solid execution but modest US growth; suits investors eyeing Europe/biosimilar upside. Not advice.
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