Aurobindo Pharma Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Aurobindo Pharma Ltd trades at ₹1,622, in a confirmed uptrend and 36 weeks into that stage. That is +17.3% against its own 200-day average. It sits at 94% of a 52-week range of ₹1,085 to ₹1,658. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 31 straight weeks.

Today the stock is in a confirmed uptrend — week 36 of stage 2, confirmed. At ₹1,622 it trades +17.3% versus its 200-day average and sits at 94% of its 52-week range (₹1,085–₹1,658).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +121% while the NIFTY 500 moved +278% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 31 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Aurobindo Pharma Ltd trades at 24.9× P/E, at the pricey end of its own range (93rd percentile). Its long-run median P/E is 17.8×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 24.9× is at the pricey end of its own range (93rd percentile), against a long-run median of 17.8× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +0.5% against a +49.7% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +16.3%/yr price move, ~+3.1%/yr came from earnings growth and ~+13.2 pp from the multiple (expanding); over 10y, of the +8.1%/yr price move, ~+5.9%/yr came from earnings growth and ~+2.2 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Aurobindo Pharma Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 15.4% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

44.8/100 — rank 25 of 44 in Pharma - Formulators · 100% evidence confidence

Aurobindo Pharma Ltd scores 44.8 out of 100 against the 44 companies it is compared with in Pharma - Formulators, ranking 25. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 16.8 + 12.2 + 4.4 + 11.4 = 44.8. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Aurobindo Pharma Ltd reported ₹9,150 Cr of revenue in the Jun 26 quarter, +16.3% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 9.3% a year. The last full year, FY26, came in at ₹33,653 Cr. The last four reported quarters add to ₹34,935 Cr.

FY26 revenue came in at ₹33,653 Cr (+6.1% on the year), capping 10 years at 9.3% compound. The latest quarter (Jun 26) printed ₹9,150 Cr, +16.3% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +9.1% growth against the decade's 9.3% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +9.1% over the last 4 quarters against +8.4%/yr over the last 8 — stabilising; TTM profit +9.5% vs +2.7%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Aurobindo Pharma Ltd's operating margin is 21.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 15.0% to 26.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 21.0%, +1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 15.0%–26.0%.

Why the margin moved: operating margin went +0.2 pp year on year while gross margin went +1.5 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Aurobindo Pharma Ltd earned ₹1,032 Cr of net profit in the Jun 26 quarter, +25.2% year on year. It is the 4th consecutive quarter of growth. Full-year FY26 profit was ₹3,503 Cr. The 10-year compound rate is 5.6%. That is 11.3% of the quarter's revenue. The same quarter a year earlier earned ₹824 Cr.

Jun 26 profit was ₹1,032 Cr, +25.2% year on year — the 4th consecutive quarter of growth. On the full year, FY26 printed ₹3,503 Cr (+0.5%), and the 10-year compound rate is 5.6%.

Why profit moved: revenue contributed +16.3% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +9.6% vs revenue +9.1%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 117% of Aurobindo Pharma Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹5,526 Cr of operating cash against ₹3,503 Cr of profit. After ₹4,705 Cr of capital spending, ₹821 Cr was left as free cash.

FY26: operating cash of ₹5,526 Cr against reported profit of ₹3,503 Cr, leaving free cash of ₹821 Cr after ₹4,705 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 117% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 117%: the cash cycle tightened 30 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 2.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Aurobindo Pharma Ltd's cash conversion cycle runs 252 days in FY26, down from 282 days in FY21. Capital spending ran ₹11,156 Cr over the last 3 years. At FY26 sales of ₹33,653 Cr each day of that cycle holds about ₹92.2 Cr, so roughly ₹23,234 Cr sits inside the business at any moment.

FY26: debtors at 77 days, inventory at 326 days — roughly 10.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 252 days, tighter than FY21's 282.

The full loop: cash goes out to suppliers and production on day 0; stock waits 326 days to sell; customers pay about 77 days after that; and suppliers themselves are paid at 151 days — netting out to the 252-day cycle.

In money terms: at FY26 sales of ₹33,653 Cr, each day of the cycle holds about ₹92.2 Cr — so the 252-day loop keeps roughly ₹23,234 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹11,156 Cr over the last 3 fiscal years against ₹4,949 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹5,214 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Aurobindo Pharma Ltd earns a ROCE of 13% in FY26. That is up from a trough of 9% in FY23. Return on invested capital clears the cost of that capital by −1.6 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 10.4% net margin on 0.58× asset turns.

FY26 ROCE is 13%, recovered from a FY23 trough of 9% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 10.4% net margin × 0.58× asset turns × 1.54× balance-sheet leverage ≈ 9.3% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 10.4% − 12.0% = a −1.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Aurobindo Pharma Ltd carries total debt of ₹8,073 Cr against shareholder equity of ₹37,883 Cr as of Jun 26, a debt-to-equity of 0.21 — effectively unlevered. On the annual view that ratio went from 0.12 in FY22 to 0.21 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹8,073 Cr against shareholder equity of ₹37,883 Cr — a debt-to-equity of 0.21. On the annual view, debt-to-equity went from 0.12 (FY22) to 0.21 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Aurobindo Pharma Ltd moved a full percentage point over the last two years — the register is quiet. Domestic institutions moved +0.3 points over the same window, to 25.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −0.4 points over 8 quarters to 16.4%; Domestic institutions: +0.3 points over 8 quarters to 25.1%; Promoters: +0.1 points over 8 quarters to 51.9%.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Aurobindo Pharma Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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