Aurobindo Pharma Ltd (AUROPHARMA) AI Stock Analysis

• Market Cap: ₹696.09B
• Dividend Yield: 0.33%
• Average Volume (3M): 40.80K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.09
• 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: ₹1,300.00
• Price Target Upside: 7.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹1,368.00 ▲(13.31% 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 Limited engages in the research, development, manufacture, and sale of active pharmaceutical ingredients, generic pharmaceuticals, and related services in India. The company primarily offers oral solids, injectables, and over-the-counter drugs, as well as active pharmaceutical ingredients and finished dosage forms for cardiovascular, central nervous system, gastroenterology, anti-allergies, anti-diabetics, anti-retroviral, antibiotics, dermatology, respiratory, and oncology. It is also involved in the development of a product pipeline in biosimilar and vaccine segments; and custom research and manufacturing activities for the bio-tech and pharmaceutical community. In addition, the company develops and manufactures peptides, as well as biocatalysts for use in the pharmaceutical and chemical industries. Further, it is developing biosimilar, inhalers, transdermal patches, vaccines, topicals, and depot injections. The company also exports its products. It serves multinational companies. The company has an agreement with COVAXX to develop and commercialize COVID-19 Vaccine for India and UNICEF. Aurobindo Pharma Limited was incorporated in 1986 and is headquartered in Hyderabad, India.

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: Positive
• Last Price: 1207.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1207.35 is above the 20-day moving average (MA) of 1201.90, above the 50-day MA of 1192.76, and above the 200-day MA of 1142.86, indicating a bullish trend. The MACD of 7.77 indicates Negative momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹696.09B	20.34	―	0.33%	7.33%	-3.79%
ALKEM	72 Outperform	₹693.51B	29.37	―	0.80%	9.32%	11.25%
LUPIN	72 Outperform	₹996.48B	23.03	―	0.57%	15.49%	64.37%
ZYDUSLIFE	72 Outperform	₹900.53B	18.30	―	1.19%	14.01%	14.62%
LAURUSLABS	66 Neutral	₹584.29B	85.38	―	0.15%	25.83%	421.20%
GLENMARK	53 Neutral	₹566.35B	56.08	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Aurobindo Pharma Ltd Corporate Events

Aurobindo Pharma Shuts Trading Window Ahead of Q3 FY26 Results

Aurobindo Pharma has announced that its trading window for dealing in the company’s securities will be closed for all designated persons, including promoters, directors, key managerial personnel, employees, connected persons and their immediate relatives, from 1 January 2026 until 48 hours after the announcement of its unaudited financial results for the third quarter and nine‑month period ending 31 December 2025. The move is in line with SEBI’s insider trading regulations and the company’s internal code of conduct, underscoring its compliance framework and signaling that the timing of forthcoming financial disclosures will temporarily restrict trading activity by insiders until the results are formally released and absorbed by the market; the exact board meeting date for approving these results will be communicated later.

Aurobindo Pharma Concludes US FDA Inspection with No Operational Impact

Aurobindo Pharma Limited announced the completion of a US FDA inspection at Unit-IV of its subsidiary, APL Healthcare Limited, located in Andhra Pradesh. The inspection, conducted over ten days, resulted in a ‘Form 483’ issuance with five procedural observations. While these observations will be addressed within the prescribed timelines, the company assured stakeholders that its operations and financials remain unaffected, affirming its commitment to maintaining high manufacturing standards globally.

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.