Aurobindo Pharma reported its Q1 FY27 earnings, showcasing a 16% year-on-year increase in consolidated revenues to ₹9,150 crore. The company highlighted strong performance across its business areas, including a 17% growth in the formulation business. Key updates included the successful completion of the Lannett acquisition, progress in biosimilar filings, and plans for expanding manufacturing capabilities. Management expressed confidence in achieving double-digit revenue growth for FY27 with EBITDA margins north of 21%.
Aurobindo Pharma Reports Strong Q1 FY27 Performance
Aurobindo Pharma Limited has disclosed its financial and operational results for the first quarter of the fiscal year 2027 (Q1 FY27), reporting a consolidated revenue of ₹9,150 crore, marking a significant 16% increase year-on-year. This growth was attributed to a broad-based performance across its diverse business segments. The company also noted that its U.S. business continued to show sustained growth, while European markets maintained strong momentum.
Key Financial and Operational Highlights
The earnings call detailed several key financial and operational achievements for the quarter:
- Consolidated Revenues: Increased by 16% year-on-year to ₹9,150 crore.
- Operating EBITDA: Stood at ₹1,924 crore with a margin of 21%, after accounting for a one-time impact of ₹43 crore related to the derecognition of leased residuals.
- Formulation Business: A primary growth driver, growing 17% year-on-year to ₹8,101 crore, contributing approximately 89% of consolidated revenues.
- API Business: Posted revenues of ₹1,049 crore, representing 11% of overall revenues.
- U.S. Revenues: Grew by 8.1% year-on-year to ₹3,770 crore ($399 million), with the launch of 10 new products and the filing of 9 ANDAs.
- European Business: Achieved revenues of €267 million, an 11% year-on-year growth in constant currency terms.
- Growth Markets Revenues: Increased by 38% year-on-year to ₹1,063 crore ($113 million).
Strategic Milestones and Future Outlook
A significant milestone during the quarter was the successful completion of the Lannett acquisition following FTC approval, which is expected to strengthen the company’s U.S. platform. Furthermore, production at the China OSD facility has doubled over the past 12 months, positioning it as a key strategic investment for sustained growth. Aurobindo Pharma reiterated its FY27 guidance for double-digit revenue growth, with EBITDA margins expected to be north of 21%, and absolute EBITDA in excess of ₹8,000 crore.
Biosimilars and CDMO Business Updates
The company provided updates on its biosimilar pipeline, with U.S. filings expected to be imminent this year. Progress was also noted in securing GMP certification for its drug substance and drug product facilities. The biosimilar and biological CMO strategy is seen as a significant long-term growth driver. Regarding the CDMO business, Unit 1 revenues are anticipated to begin from 2028, with Unit 2 expected to contribute from 2031, collectively aiming for US$150 to $200 million in revenue by 2032, with EBITDA margins in the range of 35% to 50%.
Capital Allocation and Financial Resilience
The company maintained a strong balance sheet with a net cash position of $42 million, despite significant payments for buyback and the Lannett acquisition. The average finance cost declined to 4.8%. Aurobindo Pharma continues to focus on enhancing the quality of growth through investments in high-value businesses and complex product portfolios. The company also noted the completion of its Phase 3 studies for biosimilars, leading to a slight drop in R&D expenditure for the quarter compared to the previous year, with an overall R&D expenditure guidance of ₹1,450 to ₹1,500 crore for the year.
Source: BSE
