Aurobindo Pharma Posts ₹1,032 Crore Q1 PAT, Files Merger Scheme

HYDERABAD — Aurobindo Pharma Limited announced on Wednesday that its Board of Directors has approved a scheme of amalgamation to consolidate its step-down subsidiaries, alongside reporting a 16.3% year-on-year increase in consolidated revenue for the first quarter ended June 30, 2026.

In a regulatory filing with the National Stock Exchange of India Limited and BSE Limited, the Hyderabad-headquartered pharmaceutical company detailed its strategic corporate restructuring and strong quarterly financial results.

Board Approves Scheme of Amalgamation for Eugia Subsidiaries

The Board of Directors approved a proposal to file a Scheme of Amalgamation with the Hon’ble National Company Law Tribunal (NCLT), Hyderabad. Under the scheme, two wholly owned step-down subsidiaries—Eugia Steriles Private Limited and Eugia SEZ Private Limited—will be merged into Eugia Pharma Specialities Limited, a wholly owned direct subsidiary of the company.

The company stated that the consolidation plan has been formally approved by the boards of directors of all involved entities. The amalgamation aims to streamline operations and integrate the group's specialized sterile and specialty formulations portfolio under a unified subsidiary framework.

Financial Performance Highlights for Q1 FY27

Aurobindo Pharma reported consolidated total revenue from operations of ₹9,150.35 crore (INR 91.5 billion) for Q1 FY27, compared to ₹7,868.14 crore recorded in the corresponding period of the previous fiscal year.

The company’s consolidated net profit after tax (PAT) reached ₹1,032.03 crore (INR 10.33 billion) for the quarter ended June 30, 2026, marking a 25.2% increase year-on-year from ₹824.20 crore. Basic and diluted earnings per share (EPS) stood at ₹17.86.

Operational EBITDA (before forex, other income, and exceptional items) stood at ₹1,924 crore, expanding 20.0% year-on-year, yielding an EBITDA margin of 21.0%.

Business Segment Breakdown

Formulations revenue grew by 16.5% year-on-year to reach ₹8,101 crore, accounting for the primary share of consolidated revenues:

• U.S. Formulations: Revenue increased 8.1% year-on-year to ₹3,770 crore ($399 million), supported by volume expansion and new product launches.

• Europe Formulations: Generated ₹2,937 crore (€267 million), representing a 25.6% year-on-year increase.

• Growth Markets: Formulations revenue rose 37.7% year-on-year to ₹1,063 crore ($113 million).

• Anti-Retroviral (ARV): Segment revenue stood at ₹330 crore ($35 million).

• Active Pharmaceutical Ingredients (API): Total API revenue increased 14.6% year-on-year to ₹1,049 crore ($111 million).

During the quarter, the company completed the acquisition of 100% membership interest in U.S.-based Lannett Company LLC on June 29, 2026, for a purchase consideration of $247.1 million (₹2,334.88 crore). Aurobindo generated a free cash flow of $98 million during the quarter and maintained a net cash position of $42 million as of June 30, 2026.

Official Announcements and Corporate Filings

The announcements were confirmed via official regulatory disclosures submitted to the stock exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The standalone and consolidated financial results were subject to a limited review by statutory auditors Deloitte Haskins & Sells, who issued an unmodified opinion.

Corporate Statements

"We have commenced FY27 on a strong note, delivering healthy growth across our businesses through disciplined execution, operational excellence, and the continued strength of our diversified product portfolio," stated K. Nithyananda Reddy, Vice-Chairman and Managing Director of Aurobindo Pharma Limited. "While the global operating environment remains dynamic, our resilient business model, expanding capabilities, and strategic investments position us well to achieve our long-term growth objectives."

Strategic Impact and Market Perspective

The structural merger of Eugia’s sterile and SEZ assets is designed to enhance operational efficiencies and streamline regulatory compliance across the company's injectable and specialty business units. Concurrently, the consolidation of Lannett Company LLC expands Aurobindo’s manufacturing footprint and market presence in the United States.

Key Facts at a Glance

• Consolidated Revenue: ₹9,150.35 crore (up 16.3% YoY).

• Consolidated Net Profit: ₹1,032.03 crore (up 25.2% YoY).

• U.S. & Europe Revenue: ₹3,770 crore (US) and ₹2,937 crore (Europe).

• Corporate Restructuring: Scheme of amalgamation filed for Eugia Steriles and Eugia SEZ into Eugia Pharma Specialities.

• Key Acquisition: Completed acquisition of Lannett Company LLC for $247.1 million.

Frequently Asked Questions (FAQ)

What amalgamation scheme did Aurobindo Pharma approve?

The company approved filing a Scheme of Amalgamation to merge its wholly owned step-down subsidiaries, Eugia Steriles Private Limited and Eugia SEZ Private Limited, into Eugia Pharma Specialities Limited.

What was Aurobindo Pharma's revenue for Q1 FY27?

Aurobindo Pharma reported consolidated total revenue from operations of ₹9,150.35 crore (INR 91.5 billion) for the quarter ended June 30, 2026.

How much net profit did Aurobindo Pharma post in Q1 FY27?

The company posted a consolidated net profit after tax of ₹1,032.03 crore (INR 10.33 billion).

How did the U.S. and European markets perform during the quarter?

U.S. formulations revenue grew 8.1% YoY to ₹3,770 crore, while European formulations revenue expanded 25.6% YoY to ₹2,937 crore.

Source: Aurobindo Pharma Regulatory Filing - BSE/NSE Disclosures