Explained – Why Aurobindo Pharma shares are trading with losses of over 5% on Friday

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Shares of Aurobindo Pharma Ltd. declined over 5% on Friday, May 22, after the company reported its fourth quarter earnings. The stock has snapped a three-day losing streak on Friday.

Its profit increased 2% to ₹920.84 crore from ₹902.83 crore last year. It was in-line with a CNBC-TV18 poll of ₹920.84 crore.

Revenue of ₹8,853.34 crore was up 5.6% from the previous year’s ₹8,832.12 crore. It was up 4% compared to the street estimates of ₹8,676 crore.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) declined 5% to ₹1,702.73 crore from ₹1,791.92 crore in the previous year. It was down 3% from Street expectations of ₹1,731 crore.

Its margins contracted to 19.2% from 21.4% in the year-ago period. It was lower than Street estimates of 19.9%.

Global business

Aurobindo Pharma’s US business declined 13% to ₹3,543 crore from ₹4,072 crore the previous year.
Its EU business increased 30.2% to ₹2,795 crore from ₹2,147 crore last year.

Its growth markets increased 24.7% in the fourth quarter to ₹980 crore from 786 crore.

Earnings Call Takeways

Aurobindo Pharma, in a post-earnings conference call, said it sees its EBITDA margin improving to more than 21% in FY27.

It said $400 million is a reasonable base assumption for the US business compared to $387 million in the fourth quarter.

The company may see US formulations revenue at $2 billion in a couple of years. Meanwhile, in Europe, the company is looking at double digit growth in constant currency.

Aurobindo Pharma said it is looking at in-licensing opportunities, added that it is currently concentrating on the Lannett acquisition.

Stock performance

Shares of Aurobindo Pharma are trading 5.8% lower on Friday at ₹1,458. The stock is still up 22% so far in 2026.

Also Read: PSU stock falls most in nearly two years after Q4 results trigger 10% drop



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