Aurobindo Pharma Q1 Results: Profit Falls 10%, Misses Estimates

Aurobindo Pharma Ltd.'s profit declined 10% in the first quarter of this financial year. The drugmaker has posted a consolidated bottom line of Rs 825 crore, according to the financial results declared on Monday.

This is in comparison to the profit of Rs 919 crore in the same quarter of the previous fiscal year.

Revenue increased by 4% year-on-year for the three months ended June, reaching Rs 7,868 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 1% year-on-year to Rs 1,603 crore. The Ebitda margin contracted to 20.4%.

• Revenue up 4% to Rs 7,868 crore versus Rs 7,567 crore (Estimate: Rs 8,196.60 crore).

• Net profit down 10% to Rs 824.70 crore versus Rs 919 crore (Estimate: Rs 940 crore).

• Ebitda down 1% to Rs 1,602.90 crore versus Rs 1,619.40 crore (Estimate: Rs 1,726.60 crore).

• Margin at 20.4% versus 21.4% (Estimate: 21.06%).

According to the press release, the pharma company's US formulations revenue marginally declined by 1.9% year-on-year to Rs 3,488 crore, while the Europe formulations increased 18% year-on-year to Rs 2,338 crore.

Growth Markets revenue increased by 8.8% to Rs 772 crore and ARV revenue increased by 55.2% to Rs 355 crore. API revenue decreased by 16% to Rs 916 crore.

The board on Monday also announced an interim dividend on Rs 4 per share. The company has also set the record date for the dividend as Aug. 8, 2025.

The quarterly earnings were shared after market hours. The stock settled 0.98% higher at Rs 1,090.4 apiece on the NSE, compared to a 0.64% advance in the benchmark Nifty 50.

Aurobindo Pharma's shares have fallen 24.45% in the last 12 months and 18.29% year-to-date.

Out of 29 analysts tracking the company, 23 maintain a 'buy' rating, one recommends a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 1,378.11 implies an upside of 26.4%.