Aurobindo Pharma Q3 results for the December quarter reflected steady earnings growth, supported by strong traction in European markets and stable performance in the US generics business. The company reported an 8.4% year-on-year increase in revenue and a 7.6% rise in net profit, while maintaining EBITDA margins above 20%. Growth was primarily driven by the Europe formulations segment, which posted strong double-digit expansion, offsetting slower growth in the US due to lower transient product sales. The company also continued to invest in its specialty and biosimilar pipeline, with research and development spending at 4.7% of sales. With a strong net cash position and consistent free cash flow generation during the quarter, Aurobindo remains positioned to fund capacity expansion, biosimilar launches, and new product introductions across regulated markets.

Table of Contents

• Key Highlights
• Financial Performance
• Operational Drivers
• Segment Trends
• Capital-Flow Impact
• Valuation Context
• Risks
• Outlook
• Internal Links
• External Links

Aurobindo Pharma Q3 Results: Financial Performance

Operational Drivers

• Europe revenue increased sharply with strong performance across key markets.
• US generics base business remained stable despite lower transient product sales.
• Seven ANDA approvals and nine product launches in the US during the quarter.
• Net capex of $79 million focused on capacity and new business.

Segment Trends

Europe was the primary growth driver, while API revenues declined due to market conditions.

Capital-Flow Impact

• Free cash flow generated: $118 million in Q3FY26.
• Net cash position of approximately $251 million after acquisition adjustments.
• Continued investment in biosimilars and specialty pipeline.
• R&D intensity maintained at 4.7% of sales.

Valuation Context

Aurobindo Pharma continues to trade as a large-cap global generics exporter with diversified exposure across the US, Europe, growth markets, and antiretroviral therapies. The company’s EBITDA margins have remained stable around the 20% level, supported by operating efficiencies, scale benefits, and improvements in product mix.

Stable EBITDA margins around the 20% level, strong Europe growth offsetting US pricing pressure, and a net cash position supporting expansion together form the key pillars of the company’s current valuation framework.

Aurobindo Pharma Q3 Results: Outlook

• Europe expected to remain a major growth engine.
• Steady US generics business with incremental launches.
• Biosimilar pipeline targeting a $50 billion addressable market.
• Continued investments in specialty and biologics portfolio.

Related Earnings

• SBI Q3 Results
• HUL Q3 Results
• Tata Steel Q3 Results

Official Sources

• Company Website
• Official Q3FY26 Investor Presentation