Aurobindo Pharma Limited (NSE: AUROPHARMA, BSE: 524804) reported higher revenue and profit for the quarter ended Dec. 31, 2025, supported by strong growth in Europe and stable performance in the U.S. base business, according to the company’s revised Q3 FY26 investor presentation used for its analyst call.
Q3 FY26 financial performance
Revenue from operations rose 8.4% year on year to ₹8,646 crore in Q3 FY26. Growth was driven by Europe and ARV businesses, while the U.S. base business remained stable despite lower sales of transient products.
EBITDA increased 9.0% to ₹1,773 crore, with the EBITDA margin at 20.5%, broadly stable year on year. Net profit attributable to owners of the company rose 7.6% to ₹910 crore. Reported EPS increased to ₹15.67 from ₹14.56 a year earlier.
Gross margin improved by 129 basis points to 59.7%, reflecting stable product mix and operating efficiencies. Finance costs declined year on year, while depreciation rose due to ongoing investments in capacity and compliance.
Regional and business mix
The U.S. formulations business (excluding Puerto Rico) generated $420 million in Q3 FY26 revenue, accounting for 43.2% of consolidated revenue. The company launched nine products in the U.S. during the quarter and received approvals for seven ANDAs, including two final approvals previously granted tentative status.
Europe revenue grew 27.4% year on year to ₹2,703 crore, driven by strong performance across key markets. Growth markets revenue declined 0.9% year on year, reflecting a softer performance in Indonesia, partly offset by growth in other markets.
The ARV business recorded 22.4% year-on-year growth to ₹376 crore, aided by additional business opportunities. API revenue declined 4.3% year on year to ₹963 crore, impacted by market conditions and pricing pressure.
Cash flow, capex and balance sheet
The company generated free cash flow of $118 million during the quarter. Net capex of about $79 million was deployed toward capability enhancements and new business development.
As of Dec. 31, 2025, net cash (including investments) stood at about $287 million, or about $251 million after accounting for cash appropriated for the Khandelwal Labs acquisition. The company maintained a net cash position, reflecting strong operating cash generation and disciplined capital allocation.
R&D and pipeline
Total R&D spend for the quarter was ₹409 crore, or 4.7% of sales, focused on biosimilars and specialty products. The company highlighted progress at its biosimilars arm CuraTeQ Biologics, with approvals in regulated markets and multiple filings under review.
Two biosimilars, BP16 (denosumab) and BP11 (omalizumab), are planned for regulatory submissions in the U.S. and Europe in 2026. Management said the biosimilars portfolio of 15 products targets large biologics losing patent protection over 2028–2035, with a multi-billion-dollar addressable market.
Regulatory filings and product pipeline
As of Dec. 31, 2025, Aurobindo had 879 U.S. ANDAs filed, with 719 final approvals, 31 tentative approvals, and 129 under review. The global filings footprint continued to expand across Europe and other markets, supporting medium-term growth visibility.
Summary
Aurobindo Pharma delivered steady Q3 FY26 growth, with Europe and ARV businesses driving revenue while U.S. base sales remained stable. Margins were supported by operating efficiencies, and the company maintained a net cash position. Progress in biosimilars, ongoing product launches, and a strong regulatory pipeline provide visibility into future growth, even as pricing pressure persists in APIs and transient U.S. products.