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Aurobindo Pharma (AUROPHARMA): Q2 FY27 results analysis (Quarter ended 30 Sep 2026)

Aurobindo Pharma (AUROPHARMA) No replies

Vishal @vishal #1

Consolidated figures, ₹ crore. Results were filed on 4 Nov 2026.

EBITDA is the company's figure before forex and other income. YoY/QoQ % and margins are my calculations.

MetricQ2 FY27YoYQoQ
Revenue from ops10,263+23.9%+12.2%
EBITDA2,156+28.5%+12.2%
EBITDA margin21.0%20.3%21.0%
PBT1,691+32.7%–
PAT1,124+32.5%+8.9%
PAT margin11.0%10.2%11.3%
EPS (₹)19.57~+34%+9.6%

Margin rows show the year-ago and last-quarter values.

Quality of earnings

This was the company's highest-ever quarterly revenue and EBITDA [1]. Revenue grew in every business:

  • US: +25.2% to ₹4,555 cr
  • Europe: +27.5% to ₹3,161 cr
  • Growth Markets: +16% to ₹1,026 cr
  • ARV: grew YoY; no figure given in my sources (₹360 cr by my calculation from the formulations total)
  • API: +20.9% to ₹1,162 cr

Part of the US growth is acquired. Aurobindo completed the Lannett acquisition during the quarter [1]. Management says US revenue excluding gRevlimid grew 20% QoQ, helped by Lannett, volume gains and injectables [1]. The split between organic and acquired growth isn't given.

Profit grew a bit faster than EBITDA. PBT rose 32.7% [1]. The tax rate was ~33.5%, about the same as a year ago (my calculation). I don't have other income or forex lines, and no exceptional item is mentioned.

EPS: ₹19.57 [2]. It rose slightly faster than PAT. The implied share count (~57.5 cr) is a little lower than before (~58.1 cr), and I couldn't confirm why (my calculation).

Base effect: Q2 FY26 was a modest quarter, with US revenue up only 3% YoY [5]. That flatters the YoY growth somewhat. QoQ growth (+12% revenue, +9% PAT) is the cleaner read.

Margins (Chart 3)

EBITDA margin over five quarters: 20.3% → 20.5% → 20.3% → 21.0% → 21.0% [1][4][6]. The margin held steady even as revenue rose 12% QoQ.

Guidance: what changed

  • FY27 (reaffirmed after Q1 in August): double-digit revenue growth, EBITDA margin above 21%, and EBITDA above ₹8,000 cr [7].
  • H1 progress: revenue ₹19,413 cr (+20%) and EBITDA ₹4,078 cr (21.0%). So H2 needs only ~₹3,920 cr of EBITDA to cross ₹8,000 cr (my calculation).
  • Margin: at exactly 21.0%, not yet above it.
  • New products: 10 US launches, including gAdvair and ADQUEY, the company's first new chemical entity [1].
  • Cash: net cash fell to ~US$189 mn from US$317 mn in March, after the Lannett deal and capex [1][6].
  • Q2 call: no coverage found at writing.

Positives

  • Every business grew YoY [1][2]
  • EBITDA margin steady at 21% [2]
  • On track for the ₹8,000 cr+ EBITDA target (my calculation)

Concerns

  • Organic vs acquired US growth not split [1]
  • Net cash down after the acquisition [1][6]
  • Tax rate around 33% (my calculation)

Things to track in Q3 FY27

  1. US growth excluding Lannett
  2. Margin moving above 21%, per guidance
  3. Net cash trend after acquisitions and capex

Not a buy/sell recommendation. I am not a SEBI-registered analyst. Facts are sourced; opinions are labelled.

Sources [1] InvestyWise – Q2 FY27 earnings presentation · [2] InvestyWise – Q2 FY27 results release · [3] Aurobindo – Q1 FY27 press release · [4] Medical Dialogues – Q4 FY26 & FY26 · [5] Business Standard – Q2 FY26 · [6] Quartr – Q4 FY26 summary · [7] Axis Securities – Q1 FY27 note · [8] MarketsMojo – Q3 FY26 revenue · [9] LatestLY/PTI – FY23–FY24 · [10] Business Standard – FY25 · [11] Upstox – FY23 EPS · [12] Aurobindo – May 2025 presentation (FY24–FY25 EPS) · [13] Alpha Spread – Q2 FY26 call

Charts:

(1) last 5 quarters revenue, PAT and EPS; Q3 FY26 PAT derived from the FY26 total;

(2) FY23–FY26 revenue, PAT and EPS ; FY26 EPS derived;

(3) EBITDA and PAT margin (Q3 FY26 derived);

(4) business mix, with ARV and year-ago Growth Markets derived.

Bar charts of Aurobindo Pharma consolidated revenue, PAT and EPS over five quarters, Q2 FY26 to Q2 FY27. Revenue ₹8,286 cr, ₹8,646 cr, ₹8,853 cr, ₹9,150 cr, ₹10,263 cr. PAT ₹848 cr, ₹910 cr, ₹921 cr, ₹1,032 cr, ₹1,124 cr. EPS about ₹14.6, about ₹15.7
Bar charts of Aurobindo Pharma consolidated revenue, PAT and EPS over five quarters, Q2 FY26 to Q2 FY27. Revenue ₹8,286 cr, ₹8,646 cr, ₹8,853 cr, ₹9,150 cr, ₹10,263 cr. PAT ₹848 cr, ₹910 cr, ₹921 cr, ₹1,032 cr, ₹1,124 cr. EPS about ₹14.6, about ₹15.7
Image from the analyst
Line charts of Aurobindo Pharma EBITDA margin and PAT margin over five quarters, Q2 FY26 to Q2 FY27. EBITDA margin 20.3%, 20.5%, 20.3%, 21.0%, 21.0%. PAT margin 10.2%, 10.5%, 10.4%, 11.3%, 11.0%.
Line charts of Aurobindo Pharma EBITDA margin and PAT margin over five quarters, Q2 FY26 to Q2 FY27. EBITDA margin 20.3%, 20.5%, 20.3%, 21.0%, 21.0%. PAT margin 10.2%, 10.5%, 10.4%, 11.3%, 11.0%.
Bar charts of Aurobindo Pharma revenue by business, Q2 FY26 vs Q2 FY27. US ₹4,555 cr (+25.2%), Europe ₹3,161 cr (+27.5%), Growth Markets ₹1,026 cr (+16%), ARV about ₹360 cr, API ₹1,162 cr (+20.9%). Shares of Q2 revenue: US 44%, Europe 31%, Growth Mar
Bar charts of Aurobindo Pharma revenue by business, Q2 FY26 vs Q2 FY27. US ₹4,555 cr (+25.2%), Europe ₹3,161 cr (+27.5%), Growth Markets ₹1,026 cr (+16%), ARV about ₹360 cr, API ₹1,162 cr (+20.9%). Shares of Q2 revenue: US 44%, Europe 31%, Growth Mar
Author's disclosure: Not invested

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