Aurobindo Pharma Ltd (AUROPHARMA) AI Stock Analysis

• Market Cap: ₹684.30B
• Dividend Yield: 0.34%
• Average Volume (3M): 40.80K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.08
• Revenue Growth: 7.33%
• EPS Growth: -3.79%
• Country: IN
• Employees: 26,015
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 14.61
• Shares Outstanding: 580,801,640
• 10 Day Avg. Volume: 31,329
• 30 Day Avg. Volume: 40,801
• PEG Ratio: 1.81
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 33.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,190.00
• Price Target Upside: 0.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹1,368.00 ▲(15.39% Upside)

Aurobindo Pharma's strong financial performance and bullish technical indicators are the primary drivers of its stock score. However, the high P/E ratio suggests potential overvaluation, and overbought technical conditions indicate caution for short-term investors. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong sales momentum and market demand, supporting long-term business expansion and profitability.

Cash Flow Management

Positive free cash flow reflects effective cash management, enhancing financial stability and providing resources for reinvestment and debt reduction.

Profitability Margins

Improved profitability margins indicate efficient cost management and pricing power, contributing to sustainable earnings growth and competitive advantage.

Negative Factors

EBITDA Margin Pressure

A decline in EBITDA margin may signal rising operational costs or inefficiencies, potentially impacting future profitability if not addressed.

Return on Equity

Moderate return on equity indicates that the company could enhance shareholder returns by optimizing asset utilization and capital management.

EPS Growth Decline

Negative EPS growth reflects challenges in maintaining earnings momentum, which could affect investor confidence and long-term valuation.

Aurobindo Pharma Ltd Business Overview & Revenue Model

Company Description

Aurobindo Pharma Ltd (AUROPHARMA) is a leading Indian pharmaceutical company headquartered in Hyderabad, specializing in the development and manufacturing of a wide range of generic pharmaceuticals, active pharmaceutical ingredients (APIs), and formulations. The company operates in various therapeutic segments, including anti-retroviral, anti-bacterial, anti-diabetic, and cardiovascular medications. Aurobindo Pharma is recognized for its strong presence in both domestic and international markets, exporting its products to over 150 countries worldwide, and is committed to providing affordable healthcare solutions.

How the Company Makes Money

Aurobindo Pharma generates revenue primarily through the sale of generic pharmaceuticals, which constitutes a significant portion of its earnings. The company has a diversified portfolio that includes a wide range of formulations and APIs, allowing it to cater to various therapeutic areas. Key revenue streams include the sale of generic drugs in the United States, Europe, and emerging markets, as well as the production of APIs for other pharmaceutical companies. The company's robust research and development capabilities enable it to create a continuous pipeline of new products, contributing to its competitive edge. Additionally, strategic partnerships and collaborations with other pharmaceutical companies enhance its market reach and facilitate entry into new markets, further bolstering its revenue. Aurobindo's focus on cost-effective manufacturing processes and economies of scale also plays a crucial role in its profitability.

Aurobindo Pharma Ltd Financial Statement Overview

Summary

Aurobindo Pharma exhibits strong financial performance with impressive revenue growth and improved profitability margins. The balance sheet is robust with low leverage and a strong equity base, though there is room to enhance return on equity. Cash flow performance has recovered well, underscoring effective cash management.

Income Statement

Aurobindo Pharma has demonstrated strong revenue growth with a significant increase from ₹290,018.7 million to ₹317,237.3 million, indicating robust sales momentum. Gross profit margin has improved to 58.9%, and net profit margin has steadily grown to 11%. This highlights the company's enhanced profitability. However, EBITDA margin has decreased slightly, suggesting some pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.25, showcasing effective leverage management. The equity ratio stands at 65.6%, indicating a strong equity base relative to total assets. Return on equity is satisfactory at 10.7%, though it suggests potential room for improvement in generating shareholder returns.

Cash Flow

The cash flow statement reveals a strong recovery in free cash flow, which turned positive at ₹19,567.6 million from a negative position the previous year. Operating cash flow has increased significantly, leading to a favorable operating cash flow to net income ratio. The free cash flow to net income ratio has also improved, reflecting better cash management and profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	320.25B	317.24B	290.02B	248.55B	234.55B	247.75B
Gross Profit	183.74B	182.40B	160.16B	132.14B	130.06B	145.85B
EBITDA	64.81B	64.36B	57.64B	36.34B	43.11B	53.95B
Net Income	33.91B	34.86B	31.73B	19.27B	26.48B	53.35B
Balance Sheet
Total Assets	0.00	497.85B	450.72B	398.90B	339.22B	338.54B
Cash, Cash Equivalents and Short-Term Investments	82.36B	82.36B	63.25B	62.24B	45.58B	56.21B
Total Debt	0.00	82.63B	66.48B	52.86B	32.79B	53.39B
Total Liabilities	-326.47B	171.38B	152.21B	130.38B	93.48B	119.25B
Stockholders Equity	326.47B	326.53B	298.43B	268.40B	245.76B	219.30B
Cash Flow
Free Cash Flow	0.00	19.57B	-11.27B	-3.34B	23.12B	14.55B
Operating Cash Flow	0.00	39.25B	24.35B	23.87B	50.16B	33.29B
Investing Cash Flow	0.00	-18.76B	-42.56B	-39.78B	-32.12B	5.99B
Financing Cash Flow	0.00	1.20B	8.00B	18.14B	-29.69B	-13.65B

Aurobindo Pharma Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1185.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AUROPHARMA, the sentiment is Neutral. The current price of 1185.5 is below the 20-day moving average (MA) of 1202.94, above the 50-day MA of 1161.26, and above the 200-day MA of 1133.73, indicating a neutral trend. The MACD of 2.82 indicates Positive momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AUROPHARMA.

Aurobindo Pharma Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	74 Outperform	₹684.30B	19.99	―	0.34%	7.33%	-3.79%
ALKEM	72 Outperform	₹676.82B	28.67	―	0.79%	9.32%	11.25%
LUPIN	72 Outperform	₹954.47B	22.06	―	0.57%	15.49%	64.37%
ZYDUSLIFE	72 Outperform	₹919.60B	18.69	―	1.20%	14.01%	14.62%
LAURUSLABS	66 Neutral	₹540.36B	78.96	―	0.16%	25.83%	421.20%
GLENMARK	53 Neutral	₹554.82B	54.94	―	0.25%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Aurobindo Pharma Ltd Corporate Events

Aurobindo Pharma Announces Key Senior Management Changes

Aurobindo Pharma Limited announced changes in its senior management, with the resignation of Dr. Mandepudi Sudhakara Reddy, Associate President of Corporate QA, effective November 4, 2025, and the retirement of Mr. K. P. Ravinatha Shetty, President of Operations, on November 3, 2025. These changes mark a significant transition in the company’s leadership, potentially impacting its operational strategies and stakeholder relations.

Aurobindo Pharma Expands into Chilean Market with New Subsidiary

Aurobindo Pharma Ltd has announced the incorporation of a new wholly owned subsidiary, Aurobindo Pharma Chile SpA, through its existing subsidiary Helix Healthcare B.V. This strategic move aims to expand Aurobindo’s pharmaceutical business into the Chilean market, enhancing its global footprint. The incorporation involves a 100% cash subscription to the share capital, with no governmental or regulatory approvals required, indicating a smooth entry into the Chilean market.

Aurobindo Pharma Expands into Chile with New Subsidiary

Aurobindo Pharma Ltd has announced the incorporation of a new wholly owned subsidiary, Eugia Pharma Chile SpA, in Chile through its stepdown subsidiary, Eugia Pharma B.V. This strategic move aims to expand Aurobindo’s pharmaceutical business in the Chilean market, enhancing its international footprint and potentially increasing its market share in the region. The incorporation involves a 100% cash subscription to the share capital, with no governmental or regulatory approvals required, indicating a streamlined expansion process.

Aurobindo Pharma Expands into Malaysia with New Subsidiary

Aurobindo Pharma Ltd has announced the incorporation of a new wholly owned subsidiary, Aurobindo Pharma (Malaysia) SDN. BHD., through its subsidiary Helix Healthcare B.V. This strategic move aims to expand the company’s pharmaceutical products business in Malaysia, enhancing its market footprint in the region. The new entity is fully owned by Aurobindo Pharma, with an initial investment of RM 400,000, and is expected to bolster the company’s operations and competitive positioning in the Southeast Asian pharmaceutical market.

Aurobindo Pharma’s Apitoria Unit Completes US FDA Inspection with Procedural Observations

Aurobindo Pharma Limited announced the completion of a US FDA inspection at Unit-I of its wholly owned subsidiary, Apitoria Pharma Private Limited, located in Telangana, India. The inspection concluded with a ‘Form 483’ issued containing five procedural observations, but no data integrity issues were found. The company stated that these observations will not impact its financials or operations, reaffirming its commitment to maintaining high-quality manufacturing standards.