Hyderabad based Aurobindo Pharma reported a stronger-than-expected June quarter, with profit, revenue and operating margin beating Street estimates. Growth was led by Europe, growth markets and the US, while management said strategic investments continue to support its long-term expansion plans. 3 Min Read
Hyderabad-based pharmaceutical major Aurobindo Pharma reported a strong performance for the June quarter (Q1FY27), with profit, revenue and operating profit beating CNBC-TV18 poll estimates. The drugmaker delivered broad-based growth across key international markets, led by Europe and growth markets, while operating margins also improved from a year ago.
The company’s consolidated net profit rose 25.2% year-on-year to ₹1,032 crore, higher than the CNBC-TV18 poll estimate of ₹982 crore. Revenue increased 16.3% to ₹9,150.3 crore, ahead of the estimated ₹9,030 crore. EBITDA stood at ₹1,881 crore, compared with the CNBC-TV18 poll estimate of ₹1,848 crore, while operating margin improved to 21% from 20% a year ago.
The company also marginally exceeded the Street estimate of 20.5%. In its investor presentation, Aurobindo Pharma said net capital expenditure stood at $78 million, largely towards capability enhancement and new business development. International business remains the key growth driver
International markets continued to dominate Aurobindo Pharma’s business, contributing 91% of consolidated revenue during the quarter, while domestic sales accounted for the remaining 9%. US revenue increased 8.1% year-on-year to ₹3,770 crore, driven primarily by volume growth and new product launches. During the quarter, the company launched 10 products in the US market. As of June 30, 2026, Aurobindo had filed 896 ANDAs with the US Food and Drug Administration (USFDA) and received 737 final approvals and 33 tentative approvals. Europe emerged as the strongest-performing major geography, with revenue rising 25.6% year-on-year to ₹2,937 crore, accounting for 32.1% of consolidated revenue.
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The company attributed the growth to robust demand across its key European markets. Growth markets and API business post healthy gains
Revenue from growth markets climbed 37.7% year-on-year to ₹1,063 crore, supported by strong performance across key geographies. The segment contributed 11.6% of consolidated revenue. The Active Pharmaceutical Ingredients (API) business recorded 14.6% year-on-year growth despite seasonal softness in the antibiotics portfolio, contributing 11.5% of consolidated revenue.
Formulations revenue increased 16.5% year-on-year to ₹8,101 crore, while the ARV business remained broadly stable at ₹330 crore during the quarter. Commenting on the performance, Vice-Chairman and Managing Director K. Nithyananda Reddy said the company had started FY27 on a strong footing, supported by healthy growth across businesses, disciplined execution, operational excellence and its diversified product portfolio. He added that Aurobindo Pharma’s expanding capabilities and strategic investments position the company well to achieve its long-term growth objectives. Merger of Eugia units to simplify group structure
Separately, the company said it’s board has approved a proposal to file a Scheme of Amalgamation with the National Company Law Tribunal (NCLT), Hyderabad, to merge step-down subsidiaries Eugia Steriles Pvt. Ltd. and Eugia SEZ Pvt.
Ltd. with Eugia Pharma Specialities Ltd., a wholly owned subsidiary of the company. The three entities are engaged in the manufacturing of injectable pharmaceutical products. The company said the proposed merger is aimed at simplifying its group structure by consolidating similar businesses into a single legal entity. It expects the amalgamation to reduce corporate and administrative overheads, improve treasury management, and create operational synergies.
Ahead of the earnings announcement, Aurobindo Pharma shares ended Wednesday’s session 1.83% higher at ₹1,615 on the NSE. Also Read: Stocks to Watch for August 6: Cummins India, Biocon, PB Fintech and more
(Edited by : Sheersh Kapoor)
First Published:
Aug 5, 2026 9:13 PM
IST
