Company Update : Aurobindo Pharma Ltd by Motilal Oswal Financial Services Ltd
Earnings broadly in line with expectations
* Aurobindo’s (ARBP) 2QFY26 sales grew 6.3% YoY to INR82.9b (our estimate: INR81.1b).
* Overall Formulation sales grew 10.3% YoY to INR73.2b.
* US formulations revenues grew 3.1% YoY to INR36.4b (CC: -1.0% YoY to USD417m; ~44% of sales). Europe formulation sales grew 18% YoY to INR24.8b (6% YoY in CC terms; ~30% of sales). Growth markets sales grew ~9% YoY to INR8.8b (~11% of sales).
* ARV revenue grew ~68% YoY to INR3.2b (~4% of sales). API sales declined ~17% YoY to INR9.6b (~11% of sales).
* Gross margin (GM) expanded 90bp YoY to 59.7% due to better product mix.
* EBITDA margin expanded 20bp YoY to 20.3% (our estimate: 20.4%), led by higher GM and partly offset by higher employee expenses (+120bp YoY as % of sales).
* EBITDA grew 7% YoY to INR16.8b (our estimate: INR16.6b).
* PAT grew 3.4% YoY to INR8.5b (our est.: INR8.6b).
* In 1HFY26, revenue/EBITDA grew 5.1%/0.6% YoY, while PAT declined 2.8% YoY
Other Key Highlights:
* ARBP filed 13 ANDAs with the USFDA, received final approval for 7 ANDAs, and launched 6 products during 2QFY26.
* As of 30th Sep’25, ARBP had filed 876 ANDAs with the USFDA and received 711 final approvals and 31 tentative approvals.
* Constant currency (CC) growth in Europe was 6.3% for 2QFY26.
* DF sales stood at INR810m in 2QFY26 and INR1,520m in 1HFY26.
* R&D expenditure was INR4,140m in 2QFY26 (~5% of sales).
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