At a Glance:Aurobindo Pharma went from being India’s generics superstar to battling FDA fire drills, margin migraines, and the curse of scale. With US revenue still leading the charge and margins bouncing back, is this a revival script — or just painkiller placebo?
1. 💊 Business Model: From Molecules to Millions
- Aurobindo makesActive Pharmaceutical Ingredients (APIs)andgeneric formulations, exporting across150+ countries.
- US Generics = 40%+ of total revenue. Rest from EU, India, ROW (rest of world).
- Large presence inoral solids, injectables, and specialty drugs.
- Also enteredbiosimilars, OTC, and complex genericsto future-proof biz.
2. 📅 FY25 Recap: The Comeback Quarter?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹24,855 Cr | ₹29,002 Cr | ₹31,724 Cr |
| Net Profit | ₹1,928 Cr | ₹3,169 Cr | ₹3,484 Cr |
| EBITDA | ₹3,707 Cr | ₹5,826 Cr | ₹6,551 Cr |
| OPM (%) | 15% | 20% | 21% |
| ROCE (%) | 9% | 14% | 14% |
| EPS (₹) | ₹32.90 | ₹54.15 | ₹59.49 |
- Margins have improved
- post-FY23 slump.
- Profits doubled in 2 years — thanks to better product mix and cost controls.
- But don’t ignore: still below peak margins of 2017–2019.
3. 📉 5-Year Track: Not Quite the Pharma Fairy Tale
- Stock CAGR (5Y):8%
- Sales CAGR (5Y):6.55%
- Profit CAGR (5Y):4%
- Margins compressed during 2020–23 due to raw material inflation + US FDA issues
- ROCE, ROE dipped to single digits but recovering now
4. 🌎 US Market: Big Cheese, Big Risks
- Aurobindo is#1 Indian generic supplier to the US
- But: intense pricing pressure, ANDA approval delays, and site audits
- Revenue is growing, but not fast enough
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