Q2 2026 Aurobindo Pharma Ltd Earnings Call Transcript
Key Points
- Aurobindo Pharma Ltd (BOM:524804) reported a 6% year-on-year increase in consolidated revenue, reaching INR8,286 crores, driven by strong performance in the U.S. and European markets.
- EBITDA for the quarter grew by 7% year-on-year to INR1,678 crores, with a margin of 20.3%, highlighting operational efficiency and cost management.
- The European business achieved an 18% year-on-year revenue growth, amounting to INR2,480 crores, and is on track to reach a $1 billion annual revenue milestone by the end of FY '26.
- The company launched 6 new products and received 7 final approvals in the U.S., demonstrating a robust pipeline and regulatory progress.
- Aurobindo Pharma Ltd (BOM:524804) started operations at the PenG plant, with production poised to contribute significantly to profitability as capacity utilization increases.
- The U.S. generic injectable business has not yet returned to pre-disruption levels, with an estimated $5 million to $10 million shortfall.
- The company is awaiting FDA reinspection for Eugia 3, which affects the launch of new injectable products.
- The PenG plant is currently operating at 40% to 50% capacity, and full ramp-up is contingent on government policy changes regarding minimum import price.
- The China plant is incurring a loss of around $1 million per quarter, although it is expected to break even between Q3 and Q4 FY '26.
- The tax rate appears high at 30% due to losses in some business segments, which are not currently offset by tax credits.
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I now hand over to Mr. Varun Mali for the opening remarks. Thank you, and over to you, sir.
Thank you, and good morning, ladies and gentlemen, and welcome to our second quarter FY '26 earnings call. I'm Varun Mali from the Investor Relations and Corporate Communications team. We hope you have received the Q2 FY '26 financials and the press release that was sent out yesterday. These are also available on our website.
I would now like to introduce our senior management team on the call with us today, represented by Dr. Satakarni Makkapati, CEO Aurobindo Biosimilars, Vaccines and Peptide Businesses and Director, Aurobindo Pharma Limited; Mr. Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited; Mr. Swami Iyer, CEO, Aurobindo Pharma USA; Mr. V. Muralidharan, CEO, Europe Formulation Business; Mr. S. Subramanian, CFO, Aurobindo Pharma Limited.
We will begin the call with the summary highlights from the
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