AUROPHARMA · Healthcare · filed 4 Nov 2026
Aurobindo Pharma Ltd. reported revenue of ₹10,263 cr for July to September 2026, +23.9% on the year and +12.2% on the quarter. That is faster than this quarter has grown in recent years (+7.1% on average), so the year-on-year number is not just the season. It is the highest quarterly revenue in the last 12 quarters on record. Over the last four quarters revenue comes to ₹36,913 cr, +13.5% on the four before.
Operating profit (EBITDA) was ₹2,156 cr, a margin of 21.0%, +75 bps on the year and +45 bps on the quarter. It is the widest margin of the last 8 quarters (range 19.8% to 21.0%). Operating costs grew +22.7% against revenue growth of +23.9%, so more of each rupee of sales reached operating profit.
Net profit was ₹1,124 cr, +32.5% on the year and +8.9% on the quarter, with earnings per share of ₹19.57. Profit before other income, one-offs and tax grew 31.5%, so the profit growth came from the business itself. The tax rate of 33% is in line with its recent average. Profit over the last four quarters totals ₹3,987 cr, +16.5% on the four before.
Of the 13 companies in Pharmaceuticals that have reported Q2 FY27 so far, Aurobindo Pharma Ltd. ranks 3rd on revenue growth; the sector median is +11.8%. Its margin moved +75 bps on the year against a sector median of −60 bps.
Pharma quarters swing with US generic launches and price erosion, while India formulations grow more steadily. Currency gains and other income can be material, so headline profit needs a check against operating profit.
On earnings per share of ₹68.96 over the last four quarters, the stock at ₹1,660.50 trades at 24.1 times trailing earnings.
No check fired. That is a statement about the checks below, not a verdict on the company.
Profit is backed by cash: operating cash flow exceeded profit.
Source: Cash flow statement
Could not run on this quarter: IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹7,544 cr | ₹7,094 cr | ▲ 6.3% |
| Inventory | ₹13,124 cr | ₹12,053 cr | ▲ 8.9% |
| Cash | ₹6,232 cr | ₹7,191 cr | ▼ 13.3% |
| Bank balances | ₹3,718 cr | ₹2,679 cr | ▲ 38.8% |
| Long-term borrowings | ₹982 cr | ₹803 cr | ▲ 22.3% |
| Short-term borrowings | ₹7,252 cr | ₹6,873 cr | ▲ 5.5% |
| Trade payables | ₹5,892 cr | ₹5,567 cr | ▲ 5.8% |
| Net block | ₹14,830 cr | ₹13,955 cr | ▲ 6.3% |
| Capital work in progress | ₹3,487 cr | ₹3,009 cr | ▲ 15.9% |
| Equity | ₹39,398 cr | ₹37,883 cr | ▲ 4.0% |
| Total assets | ₹61,754 cr | ₹58,502 cr | ▲ 5.6% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹3,283 cr | ₹2,885 cr |
| Capital expenditure | −₹1,655 cr | −₹1,577 cr |
| Investing cash flow | −₹3,702 cr | −₹2,223 cr |
| Financing cash flow | −₹596 cr | −₹943 cr |
| Dividends paid | −₹0.0 cr | −₹232 cr |
Operating cash flow was 1.52× profit. Receivables at 71 days of sales (−6 days against the last year end). Inventory at 123 days of sales (−7 days).
Other matter 1: “We did not review the interim financial information of 22 subsidiaries included in the unaudited consolidated financial results, whose interim financial information reflect total assets of ₹ 415,852.6 million as at September 30, 2026, total revenue of ₹ 59,776.9 million… Read in full
We did not review the interim financial information of 22 subsidiaries included in the unaudited consolidated financial results, whose interim financial information reflect total assets of ₹ 415,852.6 million as at September 30, 2026, total revenue of ₹ 59,776.9 million and ₹ 117,092.6 million for the quarter and half year ended September 30, 2026 respectively, total net profit after tax of ₹ 1,002.6 million and ₹ 3,289.3 million for the quarter and half year ended September 30, 2026 respectively, total comprehensive income (net) of ₹ 1,001.0 million and ₹ 3,287.7 million for the quarter and half year ended September 30, 2026 respectively and net cash inflows of ₹ 5,163.3 million for the half year ended September 30, 2026, as considered in the Statement. These interim financial information have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.
Other matter 2: “The unaudited consolidated financial results includes the interim financial information of 65 subsidiaries which have not been reviewed by their auditors, whose interim financial information reflect total assets of ₹ 114,121.5 million as at September 30, 2026, total revenue of… Read in full
The unaudited consolidated financial results includes the interim financial information of 65 subsidiaries which have not been reviewed by their auditors, whose interim financial information reflect total assets of ₹ 114,121.5 million as at September 30, 2026, total revenue of ₹ 25,871.3 million and ₹ 45,920.1 million for the quarter and half year ended September 30, 2026 respectively, total profit after tax (net) of ₹ 558.9 million and ₹ 716.5 million for the quarter and half year ended September 30, 2026 respectively, total comprehensive profit of ₹ 561.1 million and ₹ 718.7 million for the quarter and half year ended September 30, 2026 respectively and net cash inflows of ₹ 1,353.9 million for the half year ended September 30, 2026, as considered in the Statement. The unaudited consolidated financial results also includes the Group's share of loss after tax of ₹ 29.4 million and ₹ 44.7 million for the quarter and half year ended September 30, 2026 respectively and total comprehensive loss of ₹ 29.4 million and ₹ 44.7 million for the quarter and half year ended September 30, 2026 respectively, as considered in the Statement, in respect of 4 associates and 3 joint ventures, based on their interim financial information which have not been reviewed by their auditors. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group.
Filing p. consolidated limited review report p.1-2
Board approved Scheme of Amalgamation for merger of Auroactive Pharma Private Limited with Apitoria Pharma Private Limited. (p. outcome letter p.1)
Approved re-appointment of Mr. Mangalam Ramasubramanian Kumar as Independent Director for a second term of 5 years w.e.f. April 1, 2027. (p. outcome letter p.2)
Completed acquisition of 100% membership interest in Lannett Company LLC along with subsidiaries on June 29, 2026 for USD 245.7 million. (p. consolidated note 6)
Tax: Consolidated tax expense of ₹563.83 crore (current tax ₹508.57 crore, deferred tax charge ₹55.26 crore) on Profit before tax of ₹1,687.67 crore for Q2 FY27
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| US revenue ($ m) | 4,555 | 3,770 | 3,638 |
| India growth YoY | 8% | — | — |
| R&D, % of sales | 3.66% | 3.76% | — |
| Gross margin | 61.19% | 60.36% | 59.7% |
| ANDA approvals | 747 | — | — |
| ANDAs pending | 118 | — | — |
Worked out from filed numbers. R&D Expenditure % of Revenue: R&D expenditure of ₹376 crore / Revenue from operations of ₹10,263.29 crore * 100 · Gross Margin: Gross profit of ₹6,280 crore / Revenue from operations ₹10,263.29 crore * 100
Operates 30+ manufacturing and packaging facilities approved by global regulatory agencies including USFDA, UK MHRA, EDQM, ANVISA, and PMDA across US, Europe, and India.
Multi-site manufacturing footprint provides operational redundancy and mitigates single-facility regulatory risk.
US formulations revenue grew 25.2% YoY to ₹4,555 crore (USD 477 million) driven by base volume growth, 10 new launches in Q2, and integration of Lannett.
Volume gains and complex product launches successfully overcame base generic price pressure in the US.
Portfolio is spread across 7 major therapeutic areas (CNS, ARV, CVS, Antibiotics, Gastroenterological, Anti-Diabetics, Anti-Allergics) spanning over 150 countries.
Broad therapeutic and geographic diversification prevents single-product reliance.
Read using the Pharmaceuticals framework (named in the filing read). Primary valuation lens: P/E excluding one-time exclusivity gains.
Read more closely in this sector: Status of each US-filed plant · Price erosion stated · One-product dependence.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Interim Dividend Per Share | 7.00 | FY2026-27 | unchanged or first given |
| TheraNym Unit 1 Bioreactor Capacity Commissioning | 60 | March 2027 | unchanged or first given |
| TheraNym Combined Bioreactor Capacity Target | 120 | By 2030 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Pharmaceuticals | ₹10,263 cr | ▲ 23.9% | ₹1,691 cr | ▲ 32.7% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹7,352 cr | ₹7,580 cr | ₹7,567 cr | ₹7,796 cr | ₹7,979 cr | ₹8,382 cr | ₹7,868 cr | ₹8,286 cr | ₹8,646 cr | ₹8,853 cr | ₹9,150 cr | ₹10,263 cr |
| YoY | — | — | +10% | +8% | +9% | +11% | +4% | +6% | +8% | +6% | +16% | +24% |
| EBITDA margin | 21.7% | 21.9% | 21.4% | 20.1% | 19.8% | 21.0% | 20.4% | 20.3% | 20.5% | 19.8% | 20.6% | 21.0% |
| Other income, % of PBT | 13% | 1% | 17% | 11% | 13% | 10% | 9% | 9% | 9% | 9% | 17% | 10% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | −₹40.2 cr | — |
| Tax rate | 26% | 26% | 31% | 32% | 30% | 32% | 32% | 34% | 32% | 29% | 32% | 33% |
| Net profit | ₹940 cr | ₹907 cr | ₹918 cr | ₹817 cr | ₹846 cr | ₹903 cr | ₹824 cr | ₹848 cr | ₹910 cr | ₹921 cr | ₹1,032 cr | ₹1,124 cr |
| YoY | — | — | +61% | +9% | −10% | −0% | −10% | +4% | +8% | +2% | +25% | +33% |
| Core profit YoY | — | — | +44% | +21% | −5% | −1% | −0% | +8% | +17% | −2% | +17% | +32% |
| EPS | ₹15.98 | ₹15.51 | ₹15.69 | ₹14.07 | ₹14.56 | ₹15.56 | ₹14.20 | ₹14.61 | ₹15.67 | ₹15.86 | ₹17.86 | ₹19.57 |
| Flags | · | · | 1 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Aurobindo Pharma Ltd. reported revenue of ₹10,263 cr (+23.9% on the year) and net profit of ₹1,124 cr (+32.5% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved +31.5% on the year, against +32.5% for reported profit.
None of the 15 checks that could run raised a question.
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