Aurobindo Pharma
Value: largest US ANDA portfolio
- Last close
- ₹1,697.70
- 29 Sept 2026 · reference
- 1D · 1M
- 0.0% · +3.2%
- price-only
- Weight
- 1.6%
- 31 Jul 2026 · Aug rank 29
- Thesis review
- 8 Sep 2026
- Why We Own, p42
Approved description
Aurobindo is India's 3rd-largest listed pharma company by revenue (FY26 sales Rs 33,653 cr), a vertically integrated generics maker with 896 US ANDAs (737 final approvals) as of Jun-2026. Q1FY27 revenue mix: US Rs 3,770 cr (41%), Europe Rs 2,937 cr (32%), Growth Markets Rs 1,063 cr, ARV Rs 330 cr, API Rs 1,049 cr. It owns Eugia (injectables), CuraTeQ (biosimilars, 4 EU launches), a Pen-G/6-APA PLI plant at Kakinada, a China oral-solids plant supplying the EU, and completed the Lannett (US) acquisition on 29-Jun-2026.
- 01Earnings inflecting: Q1FY27 PAT +25% YoY and EBITDA margin 21% vs 20.4%; management guides FY27 absolute EBITDA >Rs 8,000 cr (+16% on FY26 Rs 6,870 cr).
- 02Europe is now a second engine: Rs 2,937 cr in Q1 (+25.6% YoY) at >20% EBITDA margin per Axis; Growth Markets +37.7%.
- 03Optionality from complex/biosimilars: 4 biosimilars already selling in EU/UK, denosumab EMA filing underway, omalizumab filing targeted Q3-2026; TheraNym/CuraTeQ guided to USD 150-200 mn revenue by 2032 at 35-50% EBITDA margin.
- 04Backward integration: Pen-G/6-APA plant running 60-70% utilisation in Q4FY26 with a 10,000 MT FY27 target (HSIE, Feb-2026); China plant to exceed 2 bn tablets capacity by end-2026/mid-2027 supporting EU margins.
- 05Balance sheet: net cash ~USD 42 mn at Jun-2026 after Lannett and buyback; stock at ~19x FY28E EPS of Rs 88.8 vs 21% FY26-28 EPS CAGR.
Reference close, with results-period markers
- 1Q Sep-25 end · 30 Sept 2025
- 2Q Dec-25 end · 31 Dec 2025
- 3Q Mar-26 end · 31 Mar 2026
- 4Q Jun-26 end · 30 Jun 2026
Quality score, technicals and Buoyant Score
Computing the scorecard…
Latest quarter · Q Jun-26
| Line (₹ cr) | Q Jun-26 | YoY | QoQ |
|---|---|---|---|
| Net Sales | 9,150 | +16.3% | +3.4% |
| Operating Profit | 1,881 | +17.3% | +7.3% |
| Net Profit | 1,033 | +25.2% | +12.2% |
Reported vs internal estimate: internal quarterly estimates are not in the supplied package; consensus feed not licensed. YoY/QoQ per PRD §12.5 (transitions, not %, on non-positive bases).
Position and valuation context
General industrial/consumer/IT preset: growth, margins, ROCE/ROIC, working capital, FCF, net debt; P/E, EV/EBITDA.
Sell-side targets are third-party views, not Buoyant's; the upside is recomputed on our reference close, so it differs from the figure printed at the broker's price date.
Valuation range
No headline target on this page; the book quotes the thesis and the risk rather than a target.
What we watch
- Advair generic launch via Lannett guided for Aug-2026; Lannett utilisation ramp over 12 months.
- Omalizumab EMA filing targeted Q3-CY2026; denosumab EMA filing underway; TheraNym Unit 1 qualification Nov-2026.
- Q2FY27 results (Nov-2026): delivery against >Rs 8,000 cr FY27 EBITDA guidance; interim dividend Rs 4/share already declared.
- USFDA inspection outcomes at Eugia/other units (Axis flags as key risk); any OAI/warning letter would hit injectables supply.
- US injectables pricing pressure from new entrants and Lannett integration (plant at only 40% utilisation) diluting margins.
- Biosimilar launch delays (denosumab/omalizumab EMA filings) and slow ramp of the Pen-G plant leaving PLI-linked capex under-utilised.