Aurobindo Pharma Q1 Results Review: Motilal Oswal Maintains 'Buy' — Check Target Price 

Aurobindo Pharma delivered lower-than-expected performance for Q1 FY26. While revenue was in line with estimates, Ebitda/PAT missed brokerage's estimates by 7%/8% for the quarter. Higher operational costs related to newer plants and pricing headwinds in the API segment impacted earnings for the quarter.

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Motilal Oswal Report

We cut our earnings estimates by 8%/7% for FY26/FY27, factoring in:

1. initial operational costs associated with the restarting of the PEN-G and China plants and

2. pricing headwinds in the API business.

We value Aurobindo Pharma Ltd. at 16x 12M forward earnings to arrive at a target price of Rs 1,300.

Aurobindo Pharma is one of the most diversified players in the generics space, catering to developed markets of the US/EU. Recent hiccups related to manufacturing plant issues and tariff uncertainties have led to volatility in earnings and, subsequently, the stock price.

However, with plants now operational and a limited scope of tariff in the generics space, coupled with an attractive valuation, we reiterate a Buy rating on the stock.

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