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What is the story about?
Aurobindo Pharma Ltd on Monday (February 9) reported its third-quarter results, posting a net profit of ₹909.8 crore, up 7.5% year-on-year from ₹846 crore, inclusive of a one-time cost of ₹65 crore due to a change in the labour code.
Revenue for the quarter grew 8.4% year-on-year to ₹8,646 crore, compared with ₹7,979 crore in the same period last year, supported by growth in Europe and the ARV (Antiretroviral drugs) segment.
EBITDA for Q3 FY26 stood at ₹1,773.6 crore, a 12.4% increase from ₹1,577.5 crore a year ago. EBITDA margin expanded to 20.5% from 19.8% in Q3 FY25.
The company’s net profit was slightly below the CNBC-TV18 poll of ₹929 crore, while revenue and EBITDA came above the poll estimates of ₹8,407 crore and ₹1,727 crore, respectively. EBITDA margin matched the poll expectation of 20.5%.
Also Read: Aurobindo Pharma shares fall after USFDA issues 11 observations at Unit III
EBITDA before R&D stood at ₹2,163 crore with a margin of 25.0%. EBITDA before forex and other income came in at ₹1,773 crore, with a margin of 20.5%. Research and development spend, including depreciation, was ₹409 crore, accounting for 4.7% of revenues.
The company reported a strong net cash position of $251 million as of December 31, 2025, after appropriating cash for the acquisition of Khandelwal Laboratories, and generated free cash flows of $118 million during the quarter. Basic and diluted EPS stood at ₹15.67 per share.
US formulations revenue increased 2.2% year-on-year to ₹3,739 crore ($420 million) and accounted for 43.2% of consolidated revenue. During the quarter, the company received final approval for seven ANDAs from the USFDA, including two ANDAs that had earlier received tentative approval.
Also Read: Aurobindo Pharma gets 3 observations after FDA scan of Telangana unit
As of December 31, 2025, Aurobindo Pharma has cumulatively filed 879 ANDAs with the USFDA, of which 719 have received final approval, and 31 have received tentative approval. The company launched nine products in the US market during the quarter.
Europe formulations revenue rose 27.4% year-on-year to ₹2,703 crore (EUR 261 million), driven by performance across key markets, and contributed 31.3% of consolidated revenue. In euro terms, revenue increased 10.7% year-on-year to EUR 261 million.
Growth Markets formulations revenue remained flat year-on-year at ₹865 crore and accounted for 10.0% of consolidated revenue. In dollar terms, revenue declined 6.1% year-on-year to USD 97 million. Domestic formulation sales during the quarter stood at ₹74 crore, while domestic formulations revenue for the first nine months of FY26 was ₹226 crore.
ARV formulations revenue increased 22.4% year-on-year to ₹376 crore, contributing 4.3% of consolidated revenue. In dollar terms, ARV revenue rose 16.1% year-on-year to $42 million. Active Pharmaceutical Ingredients revenue declined 4.3% year-on-year to ₹963 crore, accounting for 11.1% of consolidated revenue. In dollar terms, API revenue decreased 9.2% year-on-year to $108 million.
Also Read: This is the biggest trigger behind the surge in Indian Pharma stocks on Friday
K Nithyananda Reddy, Vice-Chairman and Managing Director, said, "Q3 reflected steady execution across Aurobindo’s core businesses, supported by stable demand and the strength of our diversified product portfolio in key markets, including the U. and Europe.
Growth remained measured, with continued focus on operational discipline and a balanced approach to growth and profitability. As we progress our strategic initiatives, we remain cautious yet confident in our ability to support sustainable value creation over the medium term."
Shares of Aurobindo Pharma Ltd ended at ₹1,201.25, up by ₹10.10, or 0.85%, on the BSE.
Revenue for the quarter grew 8.4% year-on-year to ₹8,646 crore, compared with ₹7,979 crore in the same period last year, supported by growth in Europe and the ARV (Antiretroviral drugs) segment.
EBITDA for Q3 FY26 stood at ₹1,773.6 crore, a 12.4% increase from ₹1,577.5 crore a year ago. EBITDA margin expanded to 20.5% from 19.8% in Q3 FY25.
The company’s net profit was slightly below the CNBC-TV18 poll of ₹929 crore, while revenue and EBITDA came above the poll estimates of ₹8,407 crore and ₹1,727 crore, respectively. EBITDA margin matched the poll expectation of 20.5%.
Also Read: Aurobindo Pharma shares fall after USFDA issues 11 observations at Unit III
EBITDA before R&D stood at ₹2,163 crore with a margin of 25.0%. EBITDA before forex and other income came in at ₹1,773 crore, with a margin of 20.5%. Research and development spend, including depreciation, was ₹409 crore, accounting for 4.7% of revenues.
The company reported a strong net cash position of $251 million as of December 31, 2025, after appropriating cash for the acquisition of Khandelwal Laboratories, and generated free cash flows of $118 million during the quarter. Basic and diluted EPS stood at ₹15.67 per share.
US formulations revenue increased 2.2% year-on-year to ₹3,739 crore ($420 million) and accounted for 43.2% of consolidated revenue. During the quarter, the company received final approval for seven ANDAs from the USFDA, including two ANDAs that had earlier received tentative approval.
Also Read: Aurobindo Pharma gets 3 observations after FDA scan of Telangana unit
As of December 31, 2025, Aurobindo Pharma has cumulatively filed 879 ANDAs with the USFDA, of which 719 have received final approval, and 31 have received tentative approval. The company launched nine products in the US market during the quarter.
Europe formulations revenue rose 27.4% year-on-year to ₹2,703 crore (EUR 261 million), driven by performance across key markets, and contributed 31.3% of consolidated revenue. In euro terms, revenue increased 10.7% year-on-year to EUR 261 million.
Growth Markets formulations revenue remained flat year-on-year at ₹865 crore and accounted for 10.0% of consolidated revenue. In dollar terms, revenue declined 6.1% year-on-year to USD 97 million. Domestic formulation sales during the quarter stood at ₹74 crore, while domestic formulations revenue for the first nine months of FY26 was ₹226 crore.
ARV formulations revenue increased 22.4% year-on-year to ₹376 crore, contributing 4.3% of consolidated revenue. In dollar terms, ARV revenue rose 16.1% year-on-year to $42 million. Active Pharmaceutical Ingredients revenue declined 4.3% year-on-year to ₹963 crore, accounting for 11.1% of consolidated revenue. In dollar terms, API revenue decreased 9.2% year-on-year to $108 million.
Also Read: This is the biggest trigger behind the surge in Indian Pharma stocks on Friday
K Nithyananda Reddy, Vice-Chairman and Managing Director, said, "Q3 reflected steady execution across Aurobindo’s core businesses, supported by stable demand and the strength of our diversified product portfolio in key markets, including the U. and Europe.
Growth remained measured, with continued focus on operational discipline and a balanced approach to growth and profitability. As we progress our strategic initiatives, we remain cautious yet confident in our ability to support sustainable value creation over the medium term."
Shares of Aurobindo Pharma Ltd ended at ₹1,201.25, up by ₹10.10, or 0.85%, on the BSE.
