Aurobindo Pharma Limited Earnings Summary — Q1 FY2027
Aurobindo Pharma Reports 16% YoY Revenue Growth and Strong Profit Expansion Amid Lannett Acquisition
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹9,150 Cr is 16.3% higher year-on-year.
- Revenue has compounded at 8.7% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹1,033 Cr is 25.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 5.8% annualised across the period.
- Operating margin stands at 20.5% in Q1 FY2027.
- Operating margin expanded by 17 bps year-on-year.
- Over the last two years operating margin has contracted by 84 bps.
- PBT margin is 16.6%.
- Expense growth of 16.1% remained below revenue growth of 16.3%.
- Operating profit of ₹1,880 Cr is 17.2% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 76/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 9,150 | 8,853 | 8,646 | 8,286 | 7,868 | 8,382 | 7,979 | 7,796 | 7,567 | 7,580 |
| Expenses | Stable | 7,271 | 7,103 | 6,873 | 6,608 | 6,265 | 6,622 | 6,401 | 6,230 | 5,949 | 5,920 |
| Operating Profit | Stable | 1,880 | 1,750 | 1,773 | 1,678 | 1,603 | 1,760 | 1,578 | 1,566 | 1,618 | 1,660 |
| Operating Margin | Stable | 20.5% | 19.8% | 20.5% | 20.3% | 20.4% | 21.0% | 19.8% | 20.1% | 21.4% | 21.9% |
| Other Income | Volatile | 224 | 117 | 123 | 122 | 107 | 135 | 159 | 136 | 221 | 14 |
| Interest | Stable | 102 | 98 | 93 | 95 | 98 | 115 | 118 | 113 | 111 | 89 |
| Depreciation | Improving | 487 | 479 | 465 | 429 | 406 | 444 | 419 | 382 | 404 | 354 |
| Profit Before Tax | Stable | 1,515 | 1,291 | 1,339 | 1,276 | 1,207 | 1,335 | 1,200 | 1,207 | 1,324 | 1,230 |
| Tax | Improving | 483 | 370 | 429 | 428 | 383 | 432 | 354 | 391 | 406 | 323 |
| Net Profit | Stable | 1,033 | 921 | 910 | 848 | 825 | 903 | 846 | 817 | 919 | 909 |
| Net Margin | Stable | 11.3% | 10.4% | 10.5% | 10.2% | 10.5% | 10.8% | 10.6% | 10.5% | 12.2% | 12.0% |
Key Takeaways
- Consolidated revenue grew 16.3% YoY to ₹91,503.5 million, driven by organic growth and the acquisition of Lannett Company LLC.
- The acquisition of 100% membership interest in Lannett Company LLC was completed on June 29, 2026, for a consideration of ₹23,348.8 million (USD 247.1 million).
- Net profit attributable to owners rose significantly to ₹10,325.6 million, representing a 25.2% YoY increase.
- The company successfully completed a buyback of 5.42 million shares for a total consideration of ₹8,065.3 million during the quarter.
- Operating performance improved despite recording a net loss of ₹432.6 million on derecognition of lease receivables in the US subsidiary.
- Exceptional items for the quarter included ₹401.8 million in acquisition-related costs for Lannett.
- The Board approved a Scheme of Amalgamation to merge several Eugia entities (Eugia Steriles and Eugia SEZ) into Eugia Pharma Specialities Limited.
Management Guidance
Management is focusing on 'Aurobindo 2.0' with an emphasis on complex generics and biologics, supported by a new anchor customer (MSD) for the TheraNym facility. Strategic consolidation is underway through the merger of Eugia subsidiaries to streamline the specialties business.
Sentiment Shift
Improving
Strong bottom-line growth and strategic M&A execution (Lannett) offset regulatory and margin compression concerns noted in previous annual periods.
Outlook
The company expects to complete the acquisition of an 80% stake in A1 Biochem Group (USA/India) within 90-120 days for USD 13.6 million, further strengthening its R&D and API capabilities.
From the Annual Report (Key Quotes)
“The results for the quarter ended June 30, 2026, are not comparable to the earlier periods presented due to the acquisition of Lannett Company LLC.”
“The Company, incorporated a step down subsidiary, Arrow Pharma Production SAS, France... w.e.f. May 21, 2026.”
“The Board of Directors... has, inter alia, considered and approved the standalone and consolidated Unaudited Financial Results... and a proposal to file a Scheme of Amalgamation.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Aurobindo Pharma Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.