Q3 2026 Aurobindo Pharma Ltd Earnings Call Transcript
Key Points
- Aurobindo Pharma Ltd (BOM:524804) reported an 8.4% year-on-year increase in consolidated revenue for Q3 FY26, reaching INR8,640 crores, driven by strong performance in European operations and stable US business.
- The company's EBITDA grew by 9% year-on-year to INR1,773 crores, with a margin of 20.5%, showcasing strong operating leverage and fiscal prudence.
- The European business delivered a 27% year-on-year revenue growth, amounting to INR2,703 crores, indicating consistent execution across key markets.
- US injectable sales grew by 17% year-on-year, supported by volume expansion and recent product launches, reflecting a strong pipeline performance.
- Aurobindo Pharma Ltd (BOM:524804) is confident in sustaining growth momentum with a diversified operating model and strategic acquisitions, aiming for an EBITDA margin target of 20% to 21% for FY26.
- The company faced procedural observations during the Eugia III inspection, although these are expected to be resolved without production stoppage.
- The growth market revenue remained flat at INR865 crores, indicating challenges in expanding market presence.
- The company is yet to receive full clearance from the FDA for the Eugia facility, which could impact the trajectory of US injectable sales.
- The Pen G facility, while ramping up, has not yet fully contributed to profitability due to predatory pricing in the 6-APA market.
- The company is experiencing elevated tax rates due to losses in subsidiaries like CuraTeQ and Lyfius, which are not yet offset by tax credits.
Good day, and welcome to Aurobindo Pharma's earning conference call for the third quarter of FY26. (Operator Instructions) Please note, this conference is being recorded.
I now hand over the conference to Mr. Varun Mali for opening remarks. Thank you, and over to you, sir.
Thank you, Vandit. Good morning, ladies and gentlemen, and welcome to our third quarter FY26 earnings call. I'm Varun Mali from the Investor Relations and Corporate Communications team. We hope you have received the Q3 FY26 financials and the press release that was sent out yesterday. These are also available on our website, www.aurobindo.com.
I would now like to introduce our senior management team who is 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
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