Aurobindo Pharma Ltd. delivered exceptional first quarter results for fiscal 2027, with net profit surging 25.2% to ₹1,032 crore compared to ₹824 crore in the corresponding quarter of the previous year. According to the latest financial results, the company achieved its highest-ever quarterly revenue of ₹9,150.3 crore, representing a 16.3% increase from ₹7,868 crore in the same period last year. The growth was driven by strength across nearly all business segments, demonstrating the company's diversified product portfolio and operational excellence. Notably, revenue beat the CNBC-TV18 poll estimate of ₹9,030 crore, while EBITDA increased 17.3% year-on-year to ₹1,881 crore from ₹1,603 crore, ahead of the poll estimate of ₹1,848 crore. EBITDA margin improved to 21% from 20% a year ago and was above the poll estimate of 20.5%.
Aurobindo Pharma's shares surged 2.81% to ₹1,633.50 in late-morning trade on Friday, after gaining as much as 3.13% earlier in the session. The stock gained following the company's strong Q1FY27 performance that beat CNBC-TV18 estimates. The positive market response came despite the company posting record quarterly results and providing positive guidance for the upcoming period, with the stock demonstrating resilience after initial concerns about the strong results.
K. Nithyananda Reddy, Vice-Chairman and Managing Director of Aurobindo Pharma, expressed satisfaction with the company's performance in a release on Wednesday. Reddy stated that the company has commenced FY27 on a strong note, delivering healthy growth across their businesses through disciplined execution, operational excellence, and the continued strength of their diversified product portfolio. He emphasized that while the global operating environment remains dynamic, the company's resilient business model, expanding capabilities, and strategic investments position them well to achieve long-term growth objectives and create sustained value for stakeholders.
The company provided double-digit revenue guidance for the upcoming period, indicating management's confidence in sustained growth momentum. According to latest analyst estimates, the full year 2027 revenue is expected to be ₹395.61 crore with earnings of ₹77.76 per share, while 2028 revenue estimates have increased to ₹439.23 crore with earnings of ₹90.10 per share over the past 90 days. Following the results, HDFC Securities maintained its 'Add' rating on Aurobindo Pharma and raised its target price to ₹1,730 from its earlier target. The brokerage expects the US business's quarterly sales run rate of around $400 million to sustain through new launches, while the European business is expected to sustain growth with EBITDA margin improving from more than 20% in FY26.
