Aurobindo Pharma Sees 8.6% YoY Growth In Q2 Net Profit

Aurobindo Pharma posted an 8.6 per cent increase in net profit for the second quarter of fiscal year 2025, reaching Rs 817 crore, up from Rs 752 crore in the same period last year. The growth was primarily fueled by robust sales in its Europe and growth markets. However, the company experienced an 11 per cent decline in net profit on a quarter-on-quarter basis, reflecting some transient business factors.

The company’s revenue from operations rose by 8 per cent year-on-year to Rs 7,796 crore, with a modest 3 per cent increase compared to the previous quarter. Aurobindo Pharma’s earnings before interest, tax, depreciation, and amortization (EBITDA) saw an 11.6 per cent increase, amounting to Rs 1,566 crore. As a result, the company’s EBITDA margin improved by 65 basis points, reaching 20.1 per cent for the quarter.

Sales in the United States, which accounted for 45.3 per cent of total revenue, rose by 4.3 per cent to Rs 3,530 crore. Europe, another key market, saw a significant 19 per cent year-on-year increase in revenue, reaching Rs 2,105 crore, contributing 27 per cent of the company’s total revenue. Revenue from growth markets surged by 44 per cent, totaling Rs 812 crore. 

However, Aurobindo Pharma’s antiretroviral business faced a setback, with a 22.8 per cent decline in revenue to Rs 193 crore. The active pharmaceutical ingredient (API) segment also experienced a slight dip, with revenue falling 0.9 per cent to Rs 1,156 crore.

The company allocated Rs 410 crore to research and development (R&D), representing 5.3 per cent of its total revenue. Despite the slight dip in profitability, Vice-Chairman and Managing Director K. Nithyananda Reddy remained optimistic about the company’s future performance. He highlighted that while some business activities had a temporary impact, Aurobindo Pharma’s underlying performance remains strong, and he expressed confidence in achieving the company’s strategic objectives for the year.