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Release
August 2026 · rev 1
Opportunities PMS · Published
As at 31 Aug 2026 · IST₹ · ₹ cr · BSE 500 TRI
Present
Internal working platform. Published figures are extracted from the August 2026 source package and reviewed; reference prices and fundamentals are unlicensed working data, not for redistribution. Past performance is not indicative of future returns.
Company Atlas/HealthCare/Aurobindo Pharma
NSE: AUROPHARMA· HealthCareValue · Aug 26Mid cap

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
Coverage owner: Research (per book); latest results Q Jun-26Buoyant AIF I Top 30 Holdings - Aug 2026.pdf · p1Buoyant_Why_We_Own_What_We_Own_Sep2026.pdf (portfolio as of 31 July 2026) · p42Screener ↗Tijori ↗NSE ↗
OverviewBusiness & segmentsChartsFinancialsValuationThesisRisks & catalystsCompetitorsResearch & documents
What the company does

Aurobindo Pharma · Drug Manufacturers - Specialty & Generic

Aurobindo Pharma is one of the leading vertically integrated formulations & API manufacturing companies in the world. It has a strong R&D focus and has a multi-product portfolio with manufacturing facilities in several countries. The company operates diversified businesses, structured to deliver targeted healthcare solutions across geographies and therapeutic areas. Its core operations are built on strong, integrated capabilities, encompassing both APIs and finished products. The company is one of the leading API manufacturers, with expertise in process chemistry and having the advantage of large-scale production. It is recognised globally for high-quality, reliable and cost-effective supplies. Its API business caters to both internal needs and external client demand across multiple therapeutic areas, driving profitability and sustaining the growth of its formulations area.

Full profile (Yahoo)

Aurobindo Pharma Limited, a pharmaceutical company, develops, manufactures, and commercializes generic pharmaceuticals in India, the United States, Europe, and internationally. The company manufactures a range of finished formulation products in various forms, such as oral solids, liquids, injectables for generic pharmaceuticals, branded specialty pharmaceuticals, and active pharmaceutical ingredients for CNS, anti-retroviral, cardiovascular, antibiotics, gastroenterology, anti-diabetics, and anti-allergic therapeutic areas. It also provides ointments, creams, gels, powders, transdermal, and lotions; antiretroviral drugs for PLHIV & CLHIV; and injectable products, including Penems, Penicillin, Cephalosporin, ophthalmic, inhalation, oncology, and hormone products. The company was incorporated in 1986 and is headquartered in Hyderabad, India.

Sector (Yahoo)
Healthcare
Industry (Yahoo)
Drug Manufacturers - Specialty & Generic
Employees
29,209
Website
aurobindo.com

Key people: Mr. Kambam Nithyananda Reddy (Vice Chairman & MD) · Dr. Mettu Madan Mohan Reddy (Whole-Time Director) · Dr. Makkapati Satakarni B.E., M.B.A., Ph.D. (President of Biologics, CEO of Biologics, Vaccines and Peptid & Director) · Mr. Santhanam Subramanian (Chief Financial Officer) · Mr. Mula Surya Narayana Murthy (Senior Vice President of Accounts) · Dr. S. Vijaya Kumar (President of Technical)

Who are the competitors of Aurobindo Pharma?

Aurobindo Pharma major competitors are Lupin, Dr. Reddy's Labs., Mankind Pharma, Cipla, Zydus Lifesciences, Glenmark Pharma., Alkem Laboratories. Market Cap of Aurobindo Pharma is ₹98,119 Crs. While the median market cap of its peers are ₹1,01,581 Crs.

Is Aurobindo Pharma financially stable compared to its competitors?

Aurobindo Pharma seems to be less financially stable compared to its competitors.Altman Z score of Aurobindo Pharma is 5.18 and is ranked 7 out of its 8 competitors.

Snapshot and what to watch · Tijori · 21 Sep 2026
  • Aurobindo is a large Indian maker of generic drugs, inhalers, sterile injectables, drug ingredients and early biosimilars.
  • The US brings about 41% of revenue and Europe about 32%. Growth markets and ingredients bring the rest.
  • Profit comes from US and European generics. Injectables, inhalers and the acquired US generics business, Lannett, are the growth vector.
  • It is shifting toward complex generics, sterile injectables, biosimilars and contract manufacturing. Management prioritises higher return on capital over scale.
  • Near-term profit depends on the US ramp and penicillin cost savings. Management reiterates double-digit growth and above 21% margin for FY27.
  • Earnings stay sensitive to US plant checks. Its sterile injectables plant remains under a warning letter.

Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026

Segments

Revenue mix and market share

Product Wise Break-Up
  • Formulations88.5%
  • API11.5%
Product Wise Break-Up - API
  • Betalactum76.2%
  • Non Betalactum23.8%
Location Wise Break-Up
  • USA41.2%
  • Europe32.1%
  • Rest of the World17.7%
  • India9.0%
Dosage Form Break-Up - USA Formulation
  • Orals68.4%
  • Injectables17.6%
  • Branded oncology injectables7.5%
  • OTC6.5%
Asset Break-Up
  • India62.8%
  • USA19.8%
  • Others9.1%
  • Europe8.3%

Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.

Operating metrics

Company-reported KPIs (Tijori) · latest quarter

As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.

Number of ANDA's Filed in USA897 . 2026-06
US DMF Filings322 . 2026-03
Europe DMF Filings2,153 . 2026-03
R&D as a % of Total Sales4 % 2026-06
Business model

How the company earns

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.

Economics and valuation note (book)

TTM PE 25.2x per screener; 5-yr average PE not sourced. Axis notes it raised target multiple from 17x to 18x, i.e. stock is at the upper end of its own recent range after +58% in 12 months. EV/EBITDA computed as mcap/FY26 EBITDA given net-cash position. EV/EBITDA 13.9x; dividend yield 0.2%.

Competitive position · why this and not peers
Sun PharmaSun trades at a large specialty premium while its US generics fell 9.7% in Q1FY27; Aurobindo offers 21% EPS CAGR at ~19x FY28E with no Revlimid cliff exposure.
CiplaCipla faces a FY27 gRevlimid earnings decline (brokers flag ~30% PAT drop in Q1FY27 preview); Aurobindo's US base is diversified across 737 approved ANDAs plus injectables and had no Revlimid dependence.
LupinLupin's FY26-27 earnings lean on a few US exclusivities (Tolvaptan-type events); Aurobindo's growth is broader (Europe +26%, Growth Markets +38%) and is backed by Pen-G and biosimilar integration.
Segment economics

Reported revenue mix

Product Wise Break-Up

share of revenue, %
  • Formulations
    88.5%
  • API
    11.5%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Product Wise Break-Up - API

share of revenue, %
  • Betalactum
    76.2%
  • Non Betalactum
    23.8%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Location Wise Break-Up

share of revenue, %
  • USA
    41.2%
  • Europe
    32.1%
  • Rest of the World
    17.7%
  • India
    9.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Dosage Form Break-Up - USA Formulation

share of revenue, %
  • Orals
    68.4%
  • Injectables
    17.6%
  • Branded oncology injectables
    7.5%
  • OTC
    6.5%
  • Dietary Supplements
    0.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Asset Break-Up

share of revenue, %
  • India
    62.8%
  • USA
    19.8%
  • Others
    9.1%
  • Europe
    8.3%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Industry cycle

Healthcare chapter

Healthcare — 6.9%: every headwind of 2016–17 has reversed

Indian pharma's great de-rating had four causes: US pharmacy-benefit managers merged and seized pricing power over generics; the patent cliff migrated from simple to complex molecules faster than Indian companies adapted; GDUFA fees and unannounced FDA inspections produced a wave of 483s and import alerts; and non-Indian generic players took ANDA share. We wrote publicly in 2023 that the winds were changing, and every one of those forces has now inverted. Indian companies have become genuinely good at complex chemistry, peptides and biosimilars, against a patent cliff in complex molecules worth roughly $350 bn ($142 bn of annual innovator sales lose exclusivity by 2030, more than 60% biologics). The FDA has lost about 20% of its staff. The PBM combinations are tied up in litigation. And the GLP-1 wave is real: the semaglutide patent expired in India in March 2026 and Glenmark, Dr Reddy's, Sun and Zydus launched at 50–70% discounts on day one. We like the space across the board — formulations, CDMO/CRO platforms and the GLP-1 supply chain — but we remain valuation-disciplined. Hospitals are excellent businesses that we respect and do not own at 60–80x. The sector thesis is expressed through different archetypes: a Turnaround (Glenmark), two Value names (Aurobindo, Granules), a Cyclical (Dr Reddy's at the lenalidomide trough) and a Core retailer (MedPlus). The domestic market itself is growing 10–12% in value with chronic therapies leading.

Datapoints the team can quote
  • Indian Pharmaceutical Market +12.1% YoY value growth in Jul-2026, MAT ₹2.56 lakh cr (+10.2%); anti-diabetics +17.6%, cardiac +14.7% — Pharmarack via Business Standard, Aug-2026
  • Semaglutide patent (IN 262697) expired 20-Mar-2026; Glenmark, Sun, DRL, Zydus launched generics next day at 50–70% discounts; India+EM opportunity ~₹5,000 cr — Systematix; company launches
  • $142 bn of annual innovator sales lose exclusivity by 2030 (>60% biologics); $3–5 bn capture opportunity for Indian firms FY26–30 — CareEdge, Jun-2026
  • US FDA cut ~3,500 staff (~20%) in Apr-2025; but warning letters rose to 249 in FY2025 from 167 — compliance still matters — FDA / Sidley
  • India pharma exports ~$31 bn in FY26, flat; US-bound −11.5% after 2025 tariff front-loading; Q1FY27 exports $8.1 bn (+6.8%) — Pharmexcil
What we deliberately do not own

Sun Pharma is the quality leader but at 35x+ already prices its specialty franchise and is the most exposed to the lenalidomide cliff; Cipla faces a Goa-plant remediation and a respiratory pipeline dependency; Lupin has re-rated to Sun-like multiples on a handful of US launches; Zydus is the closest competitor to our GLP-1 thesis but priced for it. We own no hospital (Apollo, Max, Fortis at 60–80x EBITDA-normalised P/E) and no CDMO at 70x+ (Divi's, Syngene) — the sector can be attractive while individual valuations still matter. Apollo Pharmacy is buried inside a hospital valuation; MedPlus is the pure play.

Market position

Market share (where tracked)

Rx Market Share - USA6.80 %as of Mar 21
Sector datapoints

From the one-pager

  • India pharma exports FY26 ~USD 31 bn, ~flat vs FY25 USD 30.47 bn; US-bound shipments fell ~11.5% in FY26 after USD 1.6 bn of tariff-driven front-loading in 2025 (Pharmexcil via Business Standard 4-Apr-2026, PharmaNow).
  • US generics: continued price erosion plus gRevlimid (lenalidomide) cliff in 2026; Sun Pharma US formulations -9.7% YoY to USD 427 mn in Q1FY27 citing lenalidomide erosion and competition…
  • GLP-1: semaglutide patents expired Canada 4-Jan-2026, India and Brazil Mar-2026; Systematix sizes the India+EM generic opportunity at ~Rs 5,000 cr (India Rs 1,000-2,000 cr in FY27…
  • Indian Pharma Market (IPM) +12.1% YoY value growth in Jul-2026 (Rs 23,193 cr); MAT Jul-2026 Rs 2.56 trn, +10.2%; anti-diabetics +17.6%, cardiac +14.7% (Pharmarack via Business Standard 7-Aug-2026).