Aurobindo Pharmaceuticals' first-quarter net income decreased by 10.2% to reach ₹824 crores.
Published on August 4, 2025
Aurobindo Pharma, a leading pharmaceutical company, has announced its Q1 2025-26 results, revealing a 10.2% year-on-year decrease in consolidated net profit to ₹824 crore. This decline is primarily attributed to rising production and operational costs, increased investment in research and development (R&D), and margin pressures.
Despite a modest 4% growth in total revenue, which reached ₹7,868 crore, total expenses increased at a faster rate of approximately 4.7%. This expansion in costs squeezed the operating margins, with the EBITDA margin narrowing from roughly 21.4% to about 20.3%.
The US formulations segment experienced a 1.9% decline in revenue, while the European formulations segment showed strong growth of 18%. Growth markets and ARV sales also registered significant increases. However, the active pharmaceutical ingredients (API) segment revenue dropped by 16%, further impacting overall profitability.
K Nithyananda Reddy, Vice-Chairman and Managing Director of Aurobindo Pharma, stated that the company started the year steadily with strong growth in Europe and resilience in the core US business. He added that operational initiatives and the recent US acquisition are expected to strengthen the company's commercial footprint and accelerate growth potential.
In a positive development for shareholders, the board of directors of Aurobindo Pharma approved the payment of an interim dividend of 400% (₹4/-) per equity share. The record date for the purpose of payment of Interim Dividend has been fixed as August 8, 2025, with the dividend to be paid on or before August 21, 2025.
Aurobindo Pharma launched 15 new products during Q1 2025-26 and filed four Abbreviated New Drug Applications with the US FDA. The company also received approval for 14 ANDAs during the same quarter.
On the stock market front, Aurobindo Pharma's scrip gained 1.04% on the Bombay Stock Exchange on Monday, closing at Rs 1,090.90.
[1] Source: Aurobindo Pharma's Q1 2025-26 Results Press Release [2] Source: Aurobindo Pharma's Q1 2025-26 Investor Presentation [4] Source: Aurobindo Pharma's Q1 2025-26 Earnings Call Transcript [5] Source: Aurobindo Pharma's Q1 2025-26 Analyst Meet
This article does not contain any new facts related to the previously mentioned stock market updates or company financials.
- In the Q1 2025-26 results, Aurobindo Pharma revealed a decrease in consolidated net profit due to increased costs, investment in R&D, and margin pressures in the finance sector.
- Despite a 4% growth in total revenue, the expansion of costs significantly squeezed the operating margins for Aurobindo Pharma's business.
- In an effort to strengthen commercial footprint and accelerate growth potential, Aurobindo Pharma is implementing operational initiatives and has recently made an acquisition in the US.
- Shareholders of Aurobindo Pharma can expect a beneficial boost as the board of directors has approved an interim dividend of 400% per equity share.
- On the stock market front, Aurobindo Pharma's scrip has shown some positivity, gaining 1.04% on the Bombay Stock Exchange.
