Aurobindo Pharma Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Aurobindo Pharma Ltd filed with BSE on 27 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Aurobindo Pharma reported FY26 revenue of ₹33,653 crores and EBITDA of ₹6,856 crores, both described as highest-ever, with Q4 FY26 revenue at ₹8,853 crores and EBITDA at ₹1,801 crores. Management highlighted growth across formulations, API, Europe and growth markets, alongside progress on the Pen-G backward integration, biosimilars pipeline and the TheraNym CDMO project. Executives also discussed the Lannett acquisition timeline, US business growth plans and cost pressures from power, fuel and raw material inputs.
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Numbers mentioned
Revenue: ₹33,653 crores (FY26)
p. 3
“For FY26, revenues stood at ₹33,653 crores, while EBITDA came in at ₹6,856 crores, translating into a healthy EBITDA margin of 20.4%, which is in line with the revenue as well as EBITDA gainer for FY26, supported by favourable product-business mix and other factors.”
S. Subramanian, page 3 of the filed PDF · View the filing
EBITDA margin: 20.3% (Q4 FY26)
p. 3
“For Q4 FY26, revenues were ₹8,853 crores and EBITDA stood at ₹1,801 crores, resulting in a robust margin of 20.3%.”
S. Subramanian, page 3 of the filed PDF · View the filing
Net profit: ₹921 crores (Q4 FY26)
p. 3
“Net profit increased by 2% year-on-year to ₹921 crores.”
S. Subramanian, page 3 of the filed PDF · View the filing
Gross contribution margin: 60% (FY26)
p. 3
“Gross contribution also reached the highest ever absolute level of ₹20,165 crores, reflecting a margin of 60%, that is an improvement of around 100 bps.”
S. Subramanian, page 3 of the filed PDF · View the filing
US formulations revenue: $387 million (Q4 FY26)
p. 3
“On a constant currency basis, U.S. revenue decreased by 18% year-on-year to $387 million.”
S. Subramanian, page 3 of the filed PDF · View the filing
Europe formulations revenue: €261 million (Q4 FY26)
p. 4
“In constant currency terms, the European revenue was €261 million against €236 million of Q4 FY25.”
S. Subramanian, page 4 of the filed PDF · View the filing
R&D expenditure: ₹1,590 crores (FY26)
p. 4
“For the year, R&D expenditure stood at ₹1,590 crores, which is 5% of revenue.”
S. Subramanian, page 4 of the filed PDF · View the filing
Net cash position: $317 million (March 2026)
p. 4
“As a result, the net cash position of the investment at the end of March’26 improved to $317 million from the net cash position of $276 million in December’25.”
S. Subramanian, page 4 of the filed PDF · View the filing
Specialty and Injectable revenue: $513 million (FY26)
p. 4
“For the full year, revenue stood at $513 million.”
S. Subramanian, page 4 of the filed PDF · View the filing
Pen-G production run rate: 11,300 tons (March 2026)
p. 15
“We have achieved in the month of March itself is around 11,300 tons capacity, right.”
S. Subramanian, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — north of 21% · FY27
stated firmly by S. Subramanian
p. 5
“We expect EBITDA margins to sustain and progressively improve to north of 21%, reflecting the scale of our operations, execution capabilities and leveraging the new business lever.”
S. Subramanian, page 5 of the filed PDF · View the filing
US business revenue — $2 billion · near term
stated as an aspiration by S. Subramanian
p. 4
“With these initiatives, our U.S. business is aiming to touch the $2 billion revenue milestone over the near term.”
S. Subramanian, page 4 of the filed PDF · View the filing
Pen-G annualized production — 10,000 metric tons
stated firmly by S. Subramanian
p. 5
“Based on current operating levels, we expect, annualized production, Pen-G production, to exceed 10,000 metric tons with a capacity utilization level exceeding 80% at consistent yields.”
S. Subramanian, page 5 of the filed PDF · View the filing
Europe business growth — minimum double digit
stated conditionally by V. Muralidharan
p. 9
“So, we are definitely trying to achieve the double digit growth. And, of course, considering the current geopolitical situations, we have taken it bit conservatively but we are confident it will be minimum double digit.”
V. Muralidharan, page 9 of the filed PDF · View the filing
Lannett deal closing — Q2 of current fiscal
stated conditionally by Swami Iyer
p. 7
“We will probably close by Q2 of the current fiscal.”
Swami Iyer, page 7 of the filed PDF · View the filing
CDMO Unit-1 revenue start — 2028
stated firmly by Satakarni Makkapati
p. 6
“So, a steady stream of revenues, to answer your question, would begin in Unit-1 from 2028.”
Satakarni Makkapati, page 6 of the filed PDF · View the filing
CDMO Unit-2 revenue start — 2031
stated firmly by Satakarni Makkapati
p. 6
“Two years from then, 2031, would be the start of revenues from Unit-2.”
Satakarni Makkapati, page 6 of the filed PDF · View the filing
Specialty and Injectable base business growth — double-digit growth · FY27
stated as an aspiration by Yugandhar Puvvala
p. 18
“So we expect the base business to continue to grow in double digits.”
Yugandhar Puvvala, page 18 of the filed PDF · View the filing
China facility EBITDA margin — low double-digit EBITDA margin · FY27
stated as an aspiration by S. Subramanian
p. 19
“At least we are working to achieve a low double-digit EBITDA margin for the year.”
S. Subramanian, page 19 of the filed PDF · View the filing
Domestic formulation business growth — double-digit · this year
stated firmly by S. Subramanian
p. 19
“And we expect overall; the entire domestic formulation business will grow in double-digit during this year.”
S. Subramanian, page 19 of the filed PDF · View the filing
ADQUEY (eczema drug) launch — Quarter 2 of fiscal year
stated conditionally by Ashish Anvekar
p. 19
“Most probably Quarter 2 of our fiscal year is when we are aiming to launch.”
Ashish Anvekar, page 19 of the filed PDF · View the filing
Eugia US vs ex-US split — 60-40
stated as an aspiration by Yugandhar Puvvala
p. 22
“But going forward, we expect that to be a 60-40.”
Yugandhar Puvvala, page 22 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the increase mainly to power and fuel consumption at the Pen-G plant and said it will continue as they shift to captive 6-APA consumption.
Answered by S. Subramanian
Asked by Tausif Shaikh: What caused the rise in operating costs excluding R&D and will it continue?
p. 6
“Yes, it will continue like this because now what is happening is we are using our own 6-APA for our captive consumption.”
S. Subramanian, page 6 of the filed PDF · View the filing
Management said it could take a couple of years, tied to acquisitions and business opportunities.
Answered by Swami Iyer
Asked by Damayanti Kerai: What is the timeline for the US business reaching $2 billion?
p. 8
“we cannot say any time be it in the near future, probably in the next maybe couple of years I would think.”
Swami Iyer, page 8 of the filed PDF · View the filing
Management said EBITDA is just above 20% and expected to improve further.
Answered by V. Muralidharan
Asked by Surya Patra: What is the EBITDA margin for the European business after crossing €1 billion?
p. 9
“Yes. So, here EBITDA is just in excess of 20% and we will be moving northwards of same, as stated by our CFO.”
V. Muralidharan, page 9 of the filed PDF · View the filing
Management quantified the impact at about ₹100 crores but said the 21% guidance reflects a net of rising costs and currency benefits, not currency alone.
Answered by S. Subramanian
Asked by Kunal Dhamesha: What is the EBITDA impact of a 1% INR depreciation against the dollar, and does the FY27 margin guidance include this benefit?
p. 15
“Don't look into that, no. Because, see, nothing comes free. When rupee is depreciating, why is it depreciating? Raw material prices are going up and solvent prices have gone by 2.5X.”
S. Subramanian, page 15 of the filed PDF · View the filing
Management described plans for filings of Omalizumab, Denosumab and Bevacizumab, and a target of 7-8 products in Europe and growth markets plus 2-3 in the US by 2030.
Answered by Satakarni Makkapati
Asked by Nitin Agarwal: What are the details of the FY30 vision for the biosimilars business?
p. 10
“By 2030, we are looking at biosimilars business having 7-8 products in Europe and growth markets, plus potentially 2-3 products in the US.”
Satakarni Makkapati, page 10 of the filed PDF · View the filing
Management said China is expected to move beyond break-even to a low double-digit EBITDA margin this year, and Khandelwal is contributing to EBITDA margin.
Answered by S. Subramanian
Asked by Jigar Valia: Has the China facility break-even helped margins, and what will Khandelwal Labs contribute?
p. 19
“But certainly, this year will not only break-even, will contribute significantly.”
S. Subramanian, page 19 of the filed PDF · View the filing
Management confirmed $400 million as a reasonable base despite quarterly seasonality.
Answered by Swami Iyer
Asked by Tarang Agrawal: Is $400 million a reasonable base for the US business going forward?
p. 22
“Yeah, it's reasonable to assume.”
Swami Iyer, page 22 of the filed PDF · View the filing
Risks flagged
Government shutdown delaying FTC approval process for the Lannett acquisition
p. 7
“You know, what we did not factor in was the government closure for 76 days between February and April. And when the government shuts down, the FTC does not function.”
Swami Iyer, page 7 of the filed PDF · View the filing
Rising raw material, solvent and freight costs pressuring margins
p. 15
“Freight cost actually has gone significantly high in the last month in March and continuing in April and May, solvent prices have gone by 2.7X, raw material, other raw material prices are also going.”
S. Subramanian, page 15 of the filed PDF · View the filing
Intense competitive price erosion expected in biosimilars market
p. 18
“Any product that you pick, there are about 10 to 11 players.”
Satakarni Makkapati, page 18 of the filed PDF · View the filing
Geopolitical issues affecting Europe growth outlook
p. 9
“So, we are definitely trying to achieve the double digit growth. And, of course, considering the current geopolitical situations, we have taken it bit conservatively but we are confident it will be minimum double digit.”
V. Muralidharan, page 9 of the filed PDF · View the filing
Delayed product launch and competitive market for Ryzneuta
p. 22
“And for the Ryzneuta, though we had an approval for a year and a half, the product launch was delayed.”
Ashish Anvekar, page 22 of the filed PDF · View the filing
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