Aurobindo Pharma Q1 FY27 Earnings Call — Analysis (NSE: AUROPHARMA)
Aurobindo raises consolidated EBITDA margin guidance to >21% for FY27, driven by US base resilience, European margin expansion, and Lannett integration, while biosimilar CMO revenues are deferred to FY28.
Result quality: stable — Steady quarter. Management sentiment: neutral.
The take
Q1FY27 Consolidated Revenue ₹9,150 Cr ( +16% YoY ) .
Results
Consolidated revenue ₹9,150 Cr +16% YoY; reported EBITDA ₹1,924 Cr (21.0% margin) after a one-time ₹43 Cr lease loss, with PAT of ₹1,032 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹9,150 Cr | +16% | yoy · Q1FY27 · YoY |
| Operating EBITDA (reported) | ₹1,924 Cr | point_in_time · Q1FY27 · Includes ₹43 Cr one-time loss on derecognition of leased residuals | |
| EBITDA Margin | 21.0% | point_in_time · Q1FY27 | |
| Gross Margin | 60.4% | +160bps | yoy · Q1FY27 · vs 58.8% in Q1FY26 |
| Profit After Tax (PAT) | ₹1,032 Cr | point_in_time · Q1FY27 | |
| US Revenue | $399 Mn | +8.1% | yoy · Q1FY27 · ₹3,770 Cr |
| Europe Revenue | €267 Mn | +11% | yoy · Q1FY27 · Constant currency |
| Growth Markets Revenue | $113 Mn | +38% | yoy · Q1FY27 · ₹1,063 Cr |
| R&D Expense | ₹350 Cr | point_in_time · Q1FY27 · 4% of revenue | |
| Net CapEx | $78 Mn | point_in_time · Q1FY27 | |
| Net Cash Position | $42 Mn | point_in_time · Q1FY27 · As of Jun-26; after $85 Mn buyback and $247 Mn Lannett acquisition |
Guidance
FY27 guidance reiterated for double-digit revenue growth, EBITDA margins 'north of 21%', and absolute EBITDA >₹8,000 Cr.
Key themes
Strategic monetisation and margin expansion across platforms
Operational commentary
- Lannett acquisition closed 29-Jun-2026 after FTC approval; adds US controlled-substance manufacturing (350 Mn unit capacity, ~40% utilised) and respiratory pipeline including Advair (launch Aug-2026).
- Biosimilars CMO: TheraNym Unit-1 inaugurated 3-Jun-2026; qualification activities on track from Nov-2026; validation batches for anchor customer (MSD) scheduled 2027, steady revenue expected 2028.
- Biosimilars pipeline: Denosumab (BP-16) filed in EU; Omalizumab EU filing on track for Q3FY27; first US filings 'imminent'; ANVISA GMP certification for both drug substance and drug product facilities received in Brazil.
- Eugia injectables: single-digit revenue growth expected FY27 due to lack of new approvals from Unit-3, where remediation is underway; revenue guided >$500 Mn for the year.
- China OSD facility: output doubled over 12 months; began supply to US; capacity >2 Bn tablets; targeting full utilisation by end-FY27 or mid-FY28.
- PEN-G plant: producing 800-900 tonnes/month; captive conversion to 6-APA/Amoxicillin; PLI incentive application filed, payment expected Sep/Mar; working towards cost self-reliance irrespective of MIP.
- Europe formulations: EBITDA margin reached 20% (up from single digits); FY27 guidance double-digit revenue growth.
- CRDMO play: acquisition of A1 Biochem (₹100 Cr revenue CRO) to build integrated CRDMO; closing expected in 1-2 months; target 3-5x scale in 3-5 years.
- STADA biosimilars partnership: duplicate MA for an oncology product expected soon, creating third European commercial channel alongside own Aurobindo Europe and Orion.
Research and educational content only. Not investment advice.