Aurobindo Pharma Q1 Results: Misses estimates, revenue up 4%; declares dividend

Aurobindo Pharma Ltd reported a mixed performance in the first quarter of FY26, missing Street expectations on most key metrics. The company posted a consolidated net profit of ₹824.2 crore, down 10.2% year-on-year from ₹918.2 crore. This was below the CNBC-TV18 poll estimate of ₹919.3 crore.

Revenue for the quarter stood at ₹7,868 crore, reflecting a 4% rise from ₹7,567 crore in the same period last year. However, this too fell short of analysts’ projection of ₹8,215 crore.

On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) remained stable, falling 1% YoY to ₹1,603 crore from ₹1,619.6 crore, against a CNBC-TV18 estimate of ₹1,730 crore.

The EBITDA margin also contracted to 20.3% from 21.4% a year ago, and was lower than the 21.1% margin anticipated.

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Aurobindo Pharma’s US formulations revenue marginally declined 1.9% year-on-year to ₹3,488 crore (USD 408 million), impacted by destocking and seasonal headwinds. However, its European formulations business continued to perform strongly, registering an 18% year-on-year growth to ₹2,338 crore (EUR 241 million).

Revenue from growth markets rose 8.8% to ₹772 crore (USD 90 million), while antiretroviral (ARV) revenues saw a sharp 55.2% jump year-on-year to ₹355 crore (USD 41 million). On the other hand, revenue from the Active Pharmaceutical Ingredients (API) segment declined 16% year-on-year to ₹916 crore (USD 107 million).

The company’s R&D expenditure for the quarter stood at ₹367 crore, accounting for 4.7% of total revenues. During the period, Aurobindo received final approval for 14 Abbreviated New Drug Applications (ANDAs) from the US Food and Drug Administration (USFDA), including one that was previously tentatively approved.

“We started the year steadily, with our European business maintaining strong growth momentum and our core US business showing resilience despite temporary challenges from destocking and seasonal dynamics,” said K. Nithyananda Reddy, Vice-Chairman and Managing Director. “Our disciplined execution, operational initiatives, and recent US acquisition strengthens our commercial footprint and accelerates growth potential,” he added.

Despite the subdued earnings, the company declared an interim dividend of ₹4.00 per equity share (400%) and fixed August 8, 2025, as the record date. The dividend will be paid on or before August 21, 2025.

Ahead of the earnings announcement, shares of Aurobindo Pharma closed at ₹1,092.00 on the NSE, up 1.13% for the day.