Europe Formulations Growth Momentum
Expected: OngoingHIGH confidence+₹700 Cr revenue
What: 27.4% YoY growth in Europe offsetting US slowdown
Impact: +₹700 Cr revenue
“Europe Formulations: ₹2,703 Cr (+27.4% YoY, 31.3% of total revenue)”
Aurobindo Pharma Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +20.6%Average4w Streak
In Week of Mar 28, 2026, Aurobindo Pharma Ltd (Pharma - Formulators) is outperforming Nifty 500 with +20.6% relative strength. Fundamentals: Average. On a 4-week streak.
PE: Near PeakWatch Value
What's Happening
📊PE near cycle highs — limited room for further expansion
🌐FII stake decreased 2.4% this quarter
🏛️DII accumulation — stake up 2.5%
💰Trading 32% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Europe Formulations Growth Momentum
OngoingHIGH
Key Risks
1. US Growth Slowdown
MEDIUMKey Numbers
PAT Growth YoY
+8%
Inflection Up
Revenue YoY
+8%
Stable
Operating Margin
21.0%
+100 bps YoY
PE Ratio
21.6
Current Price
₹1,314
Dividend Yield
0.30%
Fundamental Score
49/100
Average
3Y PAT CAGR
+10%
Market Cap
76.3K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Aurobindo Pharma Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Mar 7, 2026
What Are the Key Risks for Aurobindo Pharma Ltd?
Earnings deceleration risks from management commentary
US Growth Slowdown
MEDIUMTrigger: Continued pricing erosion
Impact: -100 bps margin impact
Management view: US Formulations: ₹3,739 Cr (+2.2% YoY, 43.2% total) with no specific commentary on addressing growth challenges
Monitor: US market share
What Is Aurobindo Pharma Ltd's Management Saying?
Key quotes from recent conference calls
“We are fully utilized and we see we are now based on the January production, we are nearly 9,000 to 10,000 annualized number. We have already ramped up significantly in the month of January. — S. Subramanian”
“Gross margin for the quarter stood at 59.7% supported by softer raw material prices and business mix. — S. Subramanian”
“We are seeing incremental benefit from portfolio acquisition which strengthens our business in the growth markets and adds scale to the overall business. — S. Subramanian”
“Taken together, these initiatives provide strong earnings growth, visibility and reinforce our confidence in achieving our internal EBITDA margin target of mostly on the higher side of 20 to 21% for FY26. — S. Subramanian”
What Is Aurobindo Pharma Ltd's Management Guidance?
Forward-looking targets from management for FY26
OPM Guidance
20.5%
Management Tone: CAUTIOUS
Key Milestones
• Biosimilars denosumab and omalizumab filings in 2026
How Fast Is Aurobindo Pharma Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +8% | +11% | Stable |
| PAT (Net Profit) | +8% | +10% | Inflection Up |
| OPM | 21.0% | +100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Mar 7, 2026.
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Frequently Asked Questions: Aurobindo Pharma Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Aurobindo Pharma Ltd's latest quarterly results?
Aurobindo Pharma Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +7.6% (turning around (inflection up))
- Revenue Growth YoY: +8.4%
- Operating Margin: 21.0% (stable)
Is Aurobindo Pharma Ltd's profit growing or declining?
Aurobindo Pharma Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +7.6% (latest quarter)
- PAT Growth QoQ: +7.3% (sequential)
- 3-Year PAT CAGR: +9.6%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Aurobindo Pharma Ltd's revenue growth trend?
Aurobindo Pharma Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +8.4%
- Revenue Growth QoQ: +4.3% (sequential)
- 3-Year Revenue CAGR: +10.6%
How is Aurobindo Pharma Ltd's operating margin trending?
Aurobindo Pharma Ltd's operating margin is stable.
- Current OPM: 21.0%
- OPM Change YoY: +1.0% basis points
- OPM Change QoQ: +1.0% basis points
What is Aurobindo Pharma Ltd's 3-year profit and revenue CAGR?
Aurobindo Pharma Ltd's long-term compounding rates
- 3-Year Profit CAGR: +9.6%
- 3-Year Revenue CAGR: +10.6%
Is Aurobindo Pharma Ltd's growth accelerating or decelerating?
Aurobindo Pharma Ltd's earnings growth is turning around (inflection up) with improving on a sequential basis.
- YoY Acceleration: +3.8% bps
- Sequential Acceleration: +4.4% bps
What is Aurobindo Pharma Ltd's trailing twelve month (TTM) performance?
Aurobindo Pharma Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹3,000 Cr
- TTM PAT Growth: -0.1% YoY
- TTM Revenue: ₹33,000 Cr
- TTM Revenue Growth: +7.3% YoY
- TTM Operating Margin: 20.5%
Is Aurobindo Pharma Ltd overvalued or undervalued?
Aurobindo Pharma Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 21.6x
- Price-to-Book: 2.2x
What is Aurobindo Pharma Ltd's current PE ratio?
Aurobindo Pharma Ltd's current PE ratio is 21.6x.
- Current PE: 21.6x
- Market Cap: 76.3K Cr
- Dividend Yield: 0.30%
How does Aurobindo Pharma Ltd's valuation compare to its history?
Aurobindo Pharma Ltd's current PE is 21.6x.
- Current PE: 21.6x
- Valuation Assessment: Significantly Overvalued
What is Aurobindo Pharma Ltd's price-to-book ratio?
Aurobindo Pharma Ltd's price-to-book ratio is 2.2x.
- Price-to-Book (P/B): 2.2x
- Book Value per Share: ₹603
- Current Price: ₹1314
Is Aurobindo Pharma Ltd a fundamentally strong company?
Aurobindo Pharma Ltd is rated Average with a fundamental score of 49.31/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +8.4% (10% weight)
- PAT Growth YoY: +7.6% (10% weight)
- PAT Growth QoQ: +7.3% (10% weight)
- Margins stable (10% weight)
Is Aurobindo Pharma Ltd debt free?
Aurobindo Pharma Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹8,000 Cr
What is Aurobindo Pharma Ltd's return on equity (ROE) and ROCE?
Aurobindo Pharma Ltd's return ratios over recent years
- FY2023: ROCE 9.0%
- FY2024: ROCE 14.0%
- FY2025: ROCE 14.0%
Is Aurobindo Pharma Ltd's cash flow positive?
Aurobindo Pharma Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹4,000 Cr
- Free Cash Flow (FCF): ₹2,000 Cr
- CFO/PAT Ratio: 113% (strong cash conversion)
What is Aurobindo Pharma Ltd's dividend yield?
Aurobindo Pharma Ltd's current dividend yield is 0.30%.
- Dividend Yield: 0.30%
- Current Price: ₹1314
Who holds Aurobindo Pharma Ltd shares — promoters, FII, DII?
Aurobindo Pharma Ltd's shareholding pattern (Dec 2025)
- Promoters: 51.8%
- FII (Foreign): 13.9%
- DII (Domestic): 27.7%
- Public: 6.5%
Is promoter holding increasing or decreasing in Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 51.8% (Dec 2025)
- Previous Quarter: 51.8% (Sep 2025)
- Change: 0.00% (stable)
How long has Aurobindo Pharma Ltd been outperforming Nifty 500?
Aurobindo Pharma Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is Aurobindo Pharma Ltd a new momentum entry or an established outperformer?
Aurobindo Pharma Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd has 1 key growth catalyst identified from recent earnings analysis
- Europe Formulations Growth Momentum
What are the key risks in Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd has 1 key risk worth monitoring
- US Growth Slowdown
What did Aurobindo Pharma Ltd's management say in the latest earnings call?
In Q3 FY26, Aurobindo Pharma Ltd's management highlighted
- "We are fully utilized and we see we are now based on the January production, we are nearly 9,000 to 10,000 annualized number. We have already ramped u..."
- "Gross margin for the quarter stood at 59.7% supported by softer raw material prices and business mix. — S. Subramanian"
- "We are seeing incremental benefit from portfolio acquisition which strengthens our business in the growth markets and adds scale to the overall busine..."
What is Aurobindo Pharma Ltd's management guidance for growth?
Aurobindo Pharma Ltd's management has provided the following forward guidance for FY26
- OPM guidance: 20.5%
- Management tone: cautious
- Milestone: Biosimilars denosumab and omalizumab filings in 2026
Is Aurobindo Pharma Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Aurobindo Pharma Ltd may be worth studying
- Earnings growing at +7.6% YoY
- Cash flow is positive — CFO ₹4,000 Cr
What is the investment thesis for Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Europe Formulations Growth Momentum
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: US Growth Slowdown
What is the future outlook for Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: Europe Formulations Growth Momentum
- Key Risk: US Growth Slowdown
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.