Aurobindo Pharma has started the new financial year on a strong note, reporting a 25.2% year-on-year rise in consolidated net profit to ₹1,032 crore for the April-June quarter. The Hyderabad-based drugmaker also posted its highest-ever quarterly revenue, helped by broad-based growth across the US, Europe and other international markets.
Revenue from operations increased 16.3% year-on-year to ₹9,150 crore in Q1 FY27, compared with ₹7,870 crore in the same quarter last year. The company said the quarter benefited from higher volumes, new product launches and stronger performance across its formulations business.
The numbers underline a healthy start for Aurobindo Pharma, particularly as the company continues to expand its global generics portfolio and strengthen its presence in key overseas markets.
Europe emerged as one of the strongest contributors during the quarter. Revenue from the European business jumped 25.6% to ₹2,937 crore from the year-ago period. The company reported broad-based growth across major European markets.
The US business, which remains an important part of Aurobindo Pharma’s international operations, also performed well. Revenue from the US increased 8.1% year-on-year to ₹3,770 crore. The growth was supported by higher volumes and new product launches.
The company’s Growth Markets business delivered an even sharper increase. Revenue from these markets rose 37.7% to ₹1,063 crore, reflecting stronger demand across markets outside its major US and European operations.
The performance shows that Aurobindo is not depending on a single geography for growth. Its diversified international presence is helping the company manage changing conditions in individual markets.
The formulations business, which contributes the largest share of Aurobindo Pharma’s revenue, grew 16.5% year-on-year to ₹8,101 crore during the quarter.
The company said growth in US formulations was supported by new product launches and higher volumes. Europe also delivered strong growth across several markets.
The active pharmaceutical ingredients (API) business was another positive contributor. API revenue increased 14.6% to ₹1,049 crore during Q1 FY27.
Aurobindo also received final US Food and Drug Administration approvals for 10 products during the quarter and launched 10 products in the US market. New product launches are particularly important for generic drugmakers because they can help companies build revenue as older products face pricing pressure and competition.
Aurobindo’s operating performance also improved during the quarter. Operating EBITDA, excluding forex impact and other income, rose 20% year-on-year to ₹1,924 crore.
The corresponding EBITDA margin expanded by 60 basis points to 21%. This indicates that the company was able to convert a part of its revenue growth into stronger operating profitability.
The improvement is notable because pharmaceutical companies continue to operate in a competitive global environment, where pricing pressure, regulatory requirements and currency movements can affect margins.
Aurobindo Vice Chairman and Managing Director K. Nithyananda Reddy said the company had begun FY27 with healthy growth across businesses, supported by disciplined execution, operational performance and a diversified product portfolio. He also acknowledged that the global operating environment remains dynamic.
Alongside the quarterly results, Aurobindo Pharma announced a significant corporate restructuring involving its injectable medicines business.
The company’s board approved a proposal to merge Eugia Steriles Private Limited and Eugia SEZ Private Limited with wholly owned subsidiary Eugia Pharma Specialities Limited. The proposal will require approval from the National Company Law Tribunal (NCLT).
All three companies are involved in the manufacture of injectable pharmaceutical products. The proposed amalgamation is aimed at bringing similar operations under one legal entity and simplifying the group’s corporate structure.
Aurobindo expects the restructuring to remove overlapping corporate and administrative functions, reduce costs, improve treasury management and create operational synergies. The company said the merger will not change its shareholding structure and will not involve any cash consideration because the entities are wholly owned within the group.
The move is part of Aurobindo’s broader effort to make its business structure more efficient as it expands its specialty and injectable drug operations.
The June quarter also included the completion of Aurobindo’s acquisition of Lannett Company LLC in the US. The transaction was completed on June 29.
Aurobindo said it ended the quarter with a net cash position of $42 million, or about ₹397 crore, including investments. This was despite spending $247 million on the Lannett acquisition and $85 million on a share buyback.
The Lannett acquisition strengthens Aurobindo’s US generics presence and adds to its product and operational capabilities in the world’s largest pharmaceutical market.
The company is also continuing to build its international footprint. During the quarter, it incorporated new step-down subsidiaries in France and Indonesia. It also acquired a 26% stake in Swarnaakshu Solar Power Private Limited.
After the quarter ended, Aurobindo subsidiary Apitoria Pharma approved the acquisition of an 80% interest in the A1 Biochem Group for an enterprise value of $17 million.
For investors tracking Aurobindo Pharma shares, the latest results provide several positives, including record quarterly revenue, double-digit growth across major markets, improving operating margins and a strong product pipeline.
At the same time, the company operates in a highly regulated and competitive global pharmaceutical market. US pricing, regulatory approvals, product launches, currency movements and the integration of recent acquisitions will remain important factors for future performance.
For now, however, the June quarter has given Aurobindo Pharma a solid beginning to FY27. Strong growth in Europe and Growth Markets, steady expansion in the US and improving profitability suggest that the company’s international strategy is gaining momentum.
The planned Eugia merger adds another layer to the story by simplifying the corporate structure and potentially reducing duplication. With new products, acquisitions and restructuring happening alongside organic growth, Aurobindo is entering FY27 with a broader platform for expansion.