Aurobindo Pharma Ltd logo

Aurobindo Pharma Ltd

AUROPHARMA NSE

Aurobindo Pharma is principally engaged in manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals and related services.(Source : 202003 Annual Report Page No:159)

AI Verdict: HOLD Confidence: 5%

Aurobindo Pharma trades at a PE of 23.9x with modest sales growth of 6% over 5 years and ROE of only 10-11%. While the stock has delivered strong 1-year returns of 37% and enjoys majority analyst buy ratings (67%), weak profitability growth and potential interest capitalization concerns warrant caution at current valuations.

Key Fundamentals

MidcapPharmaceuticalsHealthcare
Market Cap
₹90,216 Cr
Volatility
Moderate
P/E Ratio
25.77
EBITDA
₹6,512 Cr
Return on Equity
10.62%
Debt to Equity
0.24
Book Value
₹652.39
EPS
₹61.22
52W High
₹1,550.9
52W Low
₹1,016.1

Technical Indicators

Key Insights

Weaknesses

3
  • The company has delivered a poor sales growth of 6.32% over past five years.
  • Company has a low return on equity of 10.8% over last 3 years.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
3.21% ↗
Net Income Growth
-3.10% ↘
Cash Flow Change
61.21% ↗
ROE
0.47% ↘
ROCE
10.77% ↗
EBITDA Margin (Avg.)
-13.70% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Aurobindo Pharma trades at a PE of 23.9x with modest sales growth of 6% over 5 years and ROE of only 10-11%. While the stock has delivered strong 1-year returns of 37% and enjoys majority analyst buy ratings (67%), weak profitability growth and potential interest capitalization concerns warrant caution at current valuations.

Bull Case 7
  • Strong 1-year stock CAGR of 37% indicates significant positive momentum and investor confidence
  • 67% of analysts (18 out of 27) rate the stock as a Buy, reflecting broad institutional optimism
  • 3-year compounded profit growth of 23% shows meaningful earnings recovery from cyclical lows
  • Market cap of Rs 84,902 crore provides large-cap stability and liquidity for institutional investors
  • 3-year stock CAGR of 31% significantly outperforms the 5-year CAGR of 9%, suggesting accelerating re-rating
  • 10-year ROE of 14% demonstrates the company has historically generated reasonable returns on equity
  • Price-to-book ratio of 2.21x is relatively modest for a large-cap pharma company with global operations
Bear Case 8
  • Poor 5-year compounded sales growth of only 6% indicates structural revenue challenges
  • 3-year ROE of just 11% and last year ROE of 10% are below cost of equity for a pharma company
  • TTM profit growth of only 2% suggests earnings momentum is fading after the 3-year recovery
  • Company might be capitalizing interest costs, which could overstate reported profitability
  • Dividend yield of only 0.28% offers negligible income return to shareholders
  • 5-year compounded profit growth of merely 1% shows long-term earnings stagnation
  • Only 5-year sales CAGR of 6.32% despite being in a structurally growing pharmaceutical sector
  • 14.81% of analysts (4 out of 27) have a Sell rating, indicating non-trivial bearish sentiment

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 3
  • FDA OAI on Eugia Unit-III Jun 12

    US FDA classified Eugia Unit-III as OAI after inspection (Jan 27–Feb 6, 2026) with 11 observations. ~35 ANDAs frozen and estimated 3–3.5% FY27 EPS drag per Bernstein; no new approvals from facility until re-inspection clears violations.

  • Stock drops 4.55% on OAI news Jun 15

    Aurobindo fell 4.55% to ₹1,405.3 on June 15, leading BSE 'A' group losers with above-average volumes of 55,749 shares amid selling pressure from the FDA OAI classification.

  • CAPLYTA patent litigation exposure Jun 12

    Aurobindo is a co-defendant in consolidated ANDA litigation (case 3:24-cv-04264) filed by Intra-Cellular Therapies over three CAPLYTA (lumateperone) patents, alongside Dr. Reddy's, Alkem, Hetero, MSN, Sandoz, and Zydus.

Positives 5
  • FTC clears Lannett acquisition Jun 19

    Aurobindo Pharma USA secured US FTC approval to acquire 100% of Lannett Company LLC, with closing expected by June 30, 2026. HSBC sees this driving toward USD 2 billion in US sales by FY27.

  • TheraNym biologics facility launched Jun 3

    Inaugurated TheraNym, a ₹1,200 crore biologics CMO at Borapatla near Hyderabad with 15 KL bioreactor scale expandable to 60 KL. MSD (Merck) is the anchor customer; additional $175 million committed for a secondary drug substance facility.

  • USFDA approves Tofacitinib tablets Jun 5

    Received final USFDA approval for Tofacitinib 5 mg and 10 mg (generic Xeljanz) targeting a ~$494 million US market with immediate commercial launch. Total ANDA approvals now at 586 (561 final, 25 tentative).

  • Strong Q4 FY26 financials Jun 12

    Q4 FY26 consolidated net profit rose 2% to ₹921 crore on 4.4% revenue growth to ₹8,751 crore. FY26 record revenue of ₹33,653 crore with PAT of ₹3,503 crore; management targeting 21% EBITDA margin.

  • Stock up 23% YTD Jun 4

    Shares surged 23% from beginning of 2026 and 20% over six months, touching a 52-week high of ₹1,550 on May 21, 2026, with market cap around ₹85,000 crore.

Neutral 3
  • Bernstein and HSBC hold ratings Jun 22

    Bernstein maintains Market Perform with TP ₹1,498; HSBC retains Buy with TP ₹1,580, citing gAdvair launch and Pen G/China plant breakeven as catalysts despite OAI headwind.

  • No new promoter encumbrances Jun 20

    Promoters confirmed no new encumbrances on shares as of March 31, 2026, beyond prior disclosures.

  • Multiple investor conference attendance Jun 9

    Aurobindo scheduled participation in Goldman Sachs (Jun 12), UBS (Jun 10), ICICI Securities (Jun 8), Investec US (Jun 4), and Trinity India (May 29) investor meetings with no UPSI to be shared.

TL;DR: Aurobindo Pharma is executing well on growth — the Lannett acquisition (FTC cleared), TheraNym biologics launch with MSD as anchor, and Tofacitinib approval strengthen its US revenue trajectory toward $2 billion by FY27. The key risk is the FDA OAI classification on Eugia Unit-III which freezes ~35 ANDAs and could drag FY27 EPS by 3–3.5% until a successful re-inspection. The trend is constructive on strategic expansion but near-term regulatory overhang clouds visibility on new product approvals from the affected facility.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
6,473
6,851
7,219
7,352
7,580
7,567
7,796
7,979
8,382
7,868
8,286
8,646
8,853
Expenses
5,477
5,702
5,846
5,753
5,920
5,949
6,230
6,401
6,622
6,265
6,608
6,873
7,103
Operating Profit
996
1,149
1,373
1,599
1,660
1,618
1,566
1,578
1,760
1,603
1,678
1,773
1,750
OPM %
15%
17%
19%
22%
22%
21%
20%
20%
21%
20%
20%
21%
20%
Other Income
135
47
188
163
14
221
136
159
135
107
122
123
117
Interest
56
57
68
76
89
111
113
118
115
98
95
93
98
Depreciation
346
327
418
423
354
404
382
419
444
406
429
465
479
PBT
730
812
1,076
1,262
1,230
1,324
1,207
1,200
1,335
1,207
1,276
1,339
1,291
Tax %
31%
30%
30%
26%
26%
31%
32%
30%
32%
32%
34%
32%
29%
Net Profit
506
570
752
940
907
918
817
846
903
824
848
910
921
EPS in Rs
8.64
9.74
12.92
15.98
15.51
15.69
14.07
14.56
15.56
14.2
14.61
15.67
15.86
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
12,103
13,772
14,910
16,463
19,564
23,099
24,775
23,455
24,855
29,002
31,724
33,653
Expenses
9,524
10,579
11,469
12,691
15,612
18,249
19,497
19,060
21,148
23,176
25,173
26,807
Operating Profit
2,579
3,193
3,441
3,772
3,952
4,849
5,278
4,396
3,707
5,826
6,551
6,846
OPM %
21%
23%
23%
23%
20%
21%
21%
19%
15%
20%
21%
20%
Other Income
81
200
115
105
70
166
3,195
152
291
366
622
428
Interest
160
257
67
78
263
305
74
49
140
290
457
384
Depreciation
333
392
428
558
668
967
1,055
1,127
1,245
1,522
1,649
1,778
PBT
2,168
2,744
3,061
3,241
3,091
3,743
7,344
3,373
2,612
4,380
5,066
5,112
Tax %
28%
26%
25%
25%
24%
24%
27%
22%
26%
28%
31%
31%
Net Profit
1,571
2,024
2,301
2,423
2,364
2,844
5,334
2,647
1,928
3,169
3,484
3,503
EPS in Rs
26.98
34.61
39.29
41.36
40.36
48.56
91.05
45.2
32.9
54.15
60.02
60.34
Div. Payout %
8%
7%
6%
6%
6%
6%
4%
20%
23%
8%
0%
7%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
29
59
59
59
59
59
59
59
59
59
58
58
Reserves
5,127
7,229
9,313
11,622
13,832
16,766
21,871
24,517
26,781
29,784
32,595
37,833
Borrowings
4,451
5,041
3,364
4,770
6,967
5,826
5,339
2,851
5,286
6,648
8,263
8,073
Other Liabilities
3,303
3,568
3,464
4,492
5,414
6,113
6,147
6,211
7,379
8,227
8,566
12,538
Total Liabilities
12,910
15,896
16,200
20,942
26,271
28,765
33,416
33,638
39,505
44,717
49,482
58,502
Fixed Assets
3,706
4,180
4,834
6,521
8,475
9,396
9,374
10,532
11,024
14,493
14,794
19,611
CWIP
420
848
1,458
1,583
1,668
1,986
3,062
3,747
5,390
3,869
4,900
3,009
Investments
20
123
246
312
360
555
591
997
543
372
252
1,051
Other Assets
8,765
10,745
9,662
12,527
15,768
16,827
20,390
18,362
22,549
25,983
29,536
34,831
Total Assets
12,910
15,896
16,200
20,942
26,271
28,765
33,416
33,638
39,505
44,717
49,482
58,502
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
1,237
1,420
3,279
1,955
1,651
4,381
3,329
5,016
2,387
2,435
3,925
5,526
Investing
-1,017
-1,446
-1,787
-1,927
-2,904
-1,563
597
-3,211
-3,971
-4,242
-1,866
-3,459
Financing
93
365
-1,915
864
1,919
-1,947
-1,365
-2,969
1,814
800
120
-1,269
Net Cash Flow
313
340
-424
892
666
871
2,561
-1,164
230
-1,007
2,178
799
Free Cash Flow
491
-146
1,594
714
114
2,969
1,503
2,693
-323
-1,067
1,408
2,468
CFO/OP
67
67
118
70
61
106
87
143
84
72
86
107
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
107
122
68
68
64
68
52
62
66
61
66
77
Inventory Days
239
240
246
317
304
289
333
272
275
284
295
326
Days Payable
136
146
122
128
107
97
103
97
125
129
117
151
Cash Conversion Cycle
210
217
191
257
260
260
282
237
216
216
244
252
Working Capital Days
50
44
51
50
25
35
52
84
55
66
49
52
ROCE %
27%
27%
25%
23%
18%
19%
18%
13%
9%
14%
14%
13%

Shareholding Pattern

As of Mar 2026
Promoters 51.82%
DIIs 25.87%
FIIs 15.24%
Public 5.74%
Others 1.34%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
51.94%
51.83%
51.83%
51.83%
51.83%
51.83%
51.83%
51.83%
51.83%
51.83%
51.83%
51.83%
51.83%
51.80%
51.82%
51.82%
51.82%
51.82%
51.82%
51.82%
51.82%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.00%
0.00%
0.00%
0.00%
18.02%
16.73%
16.59%
16.29%
15.33%
14.37%
14.21%
13.94%
15.24%
DIIs
10.99%
12.72%
13.82%
15.11%
15.83%
15.58%
16.23%
14.89%
15.08%
15.73%
17.94%
20.23%
23.28%
24.77%
25.13%
25.20%
26.23%
26.93%
27.60%
27.68%
25.87%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
8.71%
8.54%
9.60%
8.99%
8.37%
8.80%
8.65%
9.42%
8.54%
7.01%
6.15%
5.64%
5.52%
5.47%
5.33%
5.52%
5.47%
5.67%
5.25%
5.36%
5.74%
Others
28.36%
26.91%
24.74%
24.07%
23.97%
23.79%
23.29%
23.85%
24.54%
25.42%
24.07%
22.29%
1.36%
1.23%
1.13%
1.17%
1.15%
1.20%
1.13%
1.19%
1.34%
No. of Shareholders
2,32,634
2,43,315
3,29,940
3,41,568
3,38,639
3,59,684
3,58,459
3,69,828
3,43,617
2,93,214
2,59,638
2,41,944
2,44,575
2,38,622
2,48,488
2,57,962
2,69,323
2,72,208
2,47,662
2,36,859
2,41,298

Documents

1
Concall - May 2017 May 2017
2
Concall - Jun 2017 Jun 2017
3
Concall - Jun 2017 Jun 2017
4
Concall - Jun 2017 Jun 2017
5
Concall - Aug 2017 Aug 2017

Frequently Asked Questions about Aurobindo Pharma Ltd

What does Aurobindo Pharma Ltd do?
Aurobindo Pharma is principally engaged in manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals and related services.(Source : 202003 Annual Report Page No:159)
Where is Aurobindo Pharma Ltd (AUROPHARMA) listed?
Aurobindo Pharma Ltd is listed on the Indian stock exchanges. It is listed on NSE: AUROPHARMA and BSE: 524804. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Aurobindo Pharma Ltd belong to?
Aurobindo Pharma Ltd operates in the Healthcare sector within the Pharmaceuticals & Biotechnology industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd has a market capitalisation of approximately ₹90215.92 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Aurobindo Pharma Ltd?
The Price-to-Earnings (PE) ratio of Aurobindo Pharma Ltd is 25.77. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Aurobindo Pharma Ltd?
Over the past 52 weeks, Aurobindo Pharma Ltd has traded between a low of ₹1,016.1 and a high of ₹1,550.9. This range helps investors understand the stock's price volatility and recent trading levels.
Does Aurobindo Pharma Ltd pay dividends?
Yes, Aurobindo Pharma Ltd has a dividend yield of 0.26%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd has a Return on Equity (ROE) of 10.62%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Aurobindo Pharma Ltd on Tapetide?
On Tapetide, you can view Aurobindo Pharma Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Aurobindo Pharma is principally engaged in manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals and related services.(Source : 202003 Annual Report Page No:159)

Website aurobindo.com
CEO Mr. Kambam Nithyananda Reddy
Employees 27,707
Listed 1995-04-06
Face Value ₹ 1
Issued Size 58,08,01,623

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