Aurobindo Pharma sinks 8%, stock hits over 3-month low post Q3 results
Aurobindo Pharma stock outlook: Eugia III resolution (in the backdrop of fresh observations) and the launch momentum across geographies would be key determinants, say analysts.
 "Aurobindo Pharma sinks 8%, stock hits over 3-month low post Q3 results")
Aurobindo Pharma share price today
Share price of Aurobindo Pharma hit an over three-month low at ₹1,110.55, falling 8 per cent on the BSE in Tuesday’s intra-day trade after the company announced December 2025 quarter (Q3FY26) results on Monday after market hours.
The stock price of the pharmaceutical company was quoting at its lowest level since October 30, 2025. It had hit a 52-week low of ₹994.35 on April 7, 2025.
At 02:46 PM; Aurobindo was quoting 7 per cent lower at ₹1,114.30, as compared to 0.22 per cent gain in the BSE Sensex.
Aurobindo Pharma Q3 results
Aurobindo reported a single digit 8.4 per cent year-on-year (YoY) growth in revenue at ₹8,646 crore due to softness in the US (43 per cent of the revenues) which grew 2 per cent to ₹3,739 crore. Europe formulations revenue increased by 27.4 per cent YoY to ₹2,703 crore, while growth markets revenue remained flat YoY at ₹865 crore.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 9 per cent YoY to ~₹1,773 crore while EBITDA margins increased 11 bps to 20.5 per cent. Profit after tax grew 7.6 per cent YoY to ₹910 crore.
Eugia III fails to break USFDA deadlock again
Aurobindo on February 6, 2026 said that the United States Food and Drug Administration (US FDA) inspected Unit-III, a formulation manufacturing facility, of Eugia Pharma Specialities Ltd., a wholly-owned subsidiary of Aurobindo, situated at Sangareddy (Telangana), from January 27 to February 06, 2026.
The inspection concluded with 11 observations. Aurobindo highlighted that the observations were procedural in nature, and the company aims to address these observations with the stipulated timeline of USFDA regulatory framework.
Brokerages view on Aurobindo Pharma
The Q3FY26 performance of Aurobindo was more-or-less in sync with the overall FY26 management guidance with flattish US growth (waning gRevlimid traction and pending approvals from Eugia III), overall single-digit growth, and EBITDA margins around ~21 per cent (came in slightly lower though). European growth has been consistently strong over the last few quarters, according to analysts at ICICI Securities.
Going forward, while sustainability of the EBITDA margins will be the key monitorable as the company plans to expand the R&D bandwidth and diversify into more complex models such as biosimilars, the GPMs are expected to get a boost due to commissioning of the Pen G facility. Overall, Eugia III resolution (in the backdrop of fresh observations) and the launch momentum across geographies would be key determinants for investor’s sentiments, the brokerage firm said in a note.
Meanwhile, the observations issued by the USFDA to the Eugia III site are clearly a negative event for Aurobindo. However, management appears confident to get past the USFDA deadlock this time. The negative regulatory outcome has delayed resolution of the plant by more months, BNP Paribas India said.
The inspection of Eugia III was one of key catalysts/events for Aurobindo in 2026, which has not ended in favour of Aurobindo. However, the status quo remains unchanged as the observations will not impact existing approved products from the plant but restrict future approvals from the site. The brokerage firm said their estimates remained unchanged, despite the event, as they were awaiting the inspection outcome. BNP Paribas India has an ‘outperform’ rating on Aurobindo with a target price of ₹1,480 per share.
Aurobindo has built a solid base for the US generic business with multiple manufacturing facilities. It has 690 approved ANDAs as of FY25. The company has also invested in several new projects, such as biosimilars, API PLI scheme, and the Chinese market, all of which ARBP expects to commercialise in FY26-28. Aurobindo's US business benefits from low revenue concentration with a well diversified product basket. The Eugia III inspection resolution and Lannett acquisitions are expected to further boost the US business, the brokerage firm said. ==================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.