Aurobindo Pharma reported steady Q3FY26 growth with stable margins and improving cash generation, reinforcing operational resilience. The key driver remained strong Europe performance, while biosimilars continue to shape long-term growth expectations.
Key Financials
Revenue: ₹8,646 crore, up 8.4% YoY
EBITDA: ₹1,773 crore, up 9% YoY; margin at 20.5%
Net Profit: ₹910 crore, up 7.6% YoY
Free Cash Flow: $118 million during the quarter
Net Cash Position: Approximately $251 million post acquisition
Balance sheet strength remains a key positive.
Cause Behind the Move
Europe growth engine: Revenue from Europe grew 27.4% YoY, supported by strong demand and execution across key markets.
US business stable: Modest growth supported by product approvals and launches.
Biosimilars future trigger: The company is building a 15-product biosimilar pipeline that could drive long-term valuation expansion.
API segment weak: Revenue declined 4.3% YoY due to global pricing pressure and market conditions.
Biosimilars: The Strategic Driver
CuraTeQ continues to build a global biosimilars platform. Key candidates Denosumab and Omalizumab are targeting regulatory filings in CY2026.
The Denosumab filing delay may weigh slightly in the short term, but pipeline depth keeps long-term growth intact. This segment could become a major valuation trigger going forward.
What Traders Should Watch Next
Progress on biosimilar regulatory filings in 2026
Sustainability of Europe growth momentum
US pricing environment and product approvals
Recovery in API segment
EBITDA margin trajectory around the 20% mark
Biosimilar approval or positive regulatory news could act as a strong upside trigger.
Retail Investor Relevance
Strong cash position and steady earnings make it a relatively stable pharma play
Biosimilars offer long-term compounding potential
More suited for positional and long-term investors than short-term momentum traders
Watch for accumulation during corrections rather than chasing rallies
Other Market Updates
Dividend activity: Power Grid, RITES, Repco Home Finance, Rail Vikas Nigam, PTL Enterprises
Brokerage view: Prabhudas Lilladher maintains BUY on Tata Steel with target of ₹226
High-volume movers: Ram Ratna Wires and Rolex Rings saw price strength; RECLTD showed weakness on high volume
Bottom Line
Aurobindo Pharma delivered stable growth, strong margins, and improved cash strength, keeping fundamentals intact.
Short term: Likely range-bound
Medium term: Supported by Europe growth and earnings stability
Long term: Biosimilars remain the key value creation driver
