Here’s why Aurobindo Pharma fell over 5% today despite good profit and revenue growth in Q4
Jagruti Jain
Aurobindo Pharma shares fell over 5% in Friday’s trade after the company reported a muted operational performance for Q4FY26, with weakness in the key US business and margin pressure weighing on investor sentiment.
The stock declined as much as 5.02% to ₹1,469.10 on the NSE against the previous close of ₹1,546.70. The stock also slipped from its 52-week high of ₹1,550 touched recently.
For Q4FY26, Aurobindo Pharma reported consolidated revenue of ₹8,853 crore, up 5.6% year-on-year. EBITDA stood at ₹1,801 crore, rising marginally by 0.5% YoY, while EBITDA margin declined 110 basis points to 20.3%.
Net profit for the quarter came in at ₹921 crore, up 2% YoY.
Investor concerns largely centred around the company’s US formulations business, which declined 13% year-on-year during the quarter. Management attributed the fall to seasonality and lower transient product sales in the US market, which remains the company’s largest geography.
On the other hand, Europe business posted strong growth of 30.2% YoY, while the Non Beta-lactam API segment surged 55.4% YoY, partly offsetting weakness in the US operations.
The company also highlighted ongoing strategic investments, including the acquisition of Khandelwal Labs’ non-oncology business for US$32 million and planned capital expenditure of US$150-175 million towards a new biologics facility under TheraNym.
During the earnings call, management said it expects EBITDA margin to improve to above 21% in FY27 and indicated that US formulations revenue could reach around US$2 billion over the next couple of years.
Aurobindo Pharma also said a key biosimilar candidate, Omalizumab, met all primary endpoints in Phase 3 trials, paving the way for regulatory filings.
As of March 31, 2026, the company maintained a net cash balance of US$317 million.
Disclaimer: This article is based on company-reported financial figures, management commentary and market data. Investors are advised to consult certified financial advisors before making investment decisions.