When a pharma company runs fermentation, biosimilars, and global M&As all in one quarter, it’s either chaos or choreography. For Aurobindo, it was both — controlled chaos with a confident smile. Tariff petitions, FDA inspections, and bioreactor bragging all made it to the Q2FY26 call. The CFO’s calm hid some caffeine — and the CEO’s biosimilar roadmap had more acronyms than a biotech dictionary.If science were cinema, Aurobindo’s sequel is “Penicillin Strikes Back.” Stick around — this plot thickens faster than a fermentation broth.
At a Glance
- Revenue ₹8,286 cr (+6% YoY):Growth without drama — for once.
- EBITDA ₹1,678 cr (20.3% margin):Margin’s back in fighting shape.
- PAT ₹848 cr:Not bad for a quarter juggling a dozen divisions.
- Formulations ₹7,325 cr (88% of revenue):Pills pay the bills.
- Europe ₹2,480 cr (+18% YoY):Euro boom continues — no Brexit blues.
- API ₹961 cr:Still the silent sibling.
- Pen-G plant 40–50% utilization:Brewing confidence, literally.
- R&D spend ₹414 cr (5% of sales):Still burning cash to build science.
Management’s Key Commentary
“Revenue grew 6% YoY, driven by strong U.S. and European performance.”(Translation: America buys, Europe pays, and India prays.)
“EBITDA margin at 20.3% — operating leverage and discipline at play.”(A fancy way of saying we didn’t overspend this quarter.)
“Pen-G operations began July 1; yields improving and breakeven near.”(Fermenters are finally doing more than bubbling hope.)
“Europe to cross €1 billion revenue milestone by FY26-end.”(Brexit who? They’re too busy billing.)
“Dayton plant commercial by FY27, Raleigh awaiting FDA clearance.”(FDA still typing: ‘Your inspection will be scheduled shortly.’)
“Biosimilars pipeline accelerating with Denosumab, Omalizumab, Tocilizumab.”(Even the names sound like a science quiz 😏)
“We’re confident of maintaining 20–21% margins for FY26.”(Confidence levels: sky-high; caution levels: optional.)
Numbers Decoded
| Metric | Q2FY26 | YoY Growth | Comment |
|---|---|---|---|
| Revenue | ₹8,286 cr | +6% | Powered by U.S. & Europe |
| EBITDA | ₹1,678 cr | +7% | Margin magic intact |
| EBITDA Margin | 20.3% | Flat | CFO’s comfort zone |
| PAT | ₹848 cr | ↑ | Profitability gets a clean bill of health |
| Europe Revenue | ₹2,480 cr | +18% | Euro performance hitting record highs |
| U.S. Revenue | $417 mn | +6% QoQ (ex-Revlimid) | The Revlimid hangover fades |
| R&D Spend | ₹414 cr | 5% of sales | Investing for the biosimilar future |
| Pen-G Capacity Utilization | 40–50% | Improving | 6,000 MT annualized output |
| CapEx | $106 mn | Steady | Mostly biologics and global expansions |
Comment:Growth balanced across markets, but the Pen-G and biosimilar bets will define FY27’s story arc.
Analyst Questions
Q:“Injectables back to pre-disruption levels?”A:“Almost. Give us a quarter and divine luck.”
Q:“Pen-G breakeven timeline?”A:“At 800 MT/month, we’ll make EBITDA magic.”(The plant’s doing cardio, not marathons yet.)
Q:“Price erosion in U.S.?”A:“Barely 1%. Market calm, unlike our nerves.”
Q:“China plant breakeven?”A:“Q3–Q4 FY26 — after that, pure profit noodles.”
Q:“Zentiva M&A rumor?”A:“No binding offer. Just casual browsing on corporate Tinder.”
Guidance & Outlook
Aurobindo maintainedFY26 margin guidance of 20–21%, driven by stable pricing, steady demand, and ongoing cost discipline. The biosimilar business — with Denosumab, Omalizumab, and Tocilizumab filings in FY26 — forms the
