Aurobindo Pharma Q1 PAT falls 10% on drop in API sales, US market revenue

Aurobindo Pharma reports a 10.2% YoY drop in Q1 FY26 PAT due to lower API sales and US market revenue, while its European and growth markets continue to show positive momentum

Aurobindo Pharma on Monday reported a 10.2% year-on-year (Y-o-Y) drop in consolidated profit after tax (PAT) for the June quarter (Q1 FY26), which stood at Rs 824 crore. The decline was attributed to a drop in sales in its active pharmaceutical ingredients (API) business and the United States (US) market.

 

The Hyderabad-based drugmaker had recorded a net profit of Rs 918 crore in Q1 FY25.

 

The company stated that its API business was affected by pricing pressures and geopolitical tensions, with revenues for the segment falling by 16% Y-o-Y to Rs 916 crore in Q1 FY26.

 

However, the drugmaker recorded a 4% Y-o-Y rise in revenue from operations, reaching Rs 7,868 crore in the June quarter, up from Rs 7,567 crore in Q1 FY25.

 

 

This increase was primarily driven by a 7.4% Y-o-Y rise in the drugmaker’s formulations business revenue, which contributes around 85% of the company’s overall revenue.

 

Aurobindo Pharma saw an 18% Y-o-Y revenue growth in European markets, which stood at Rs 2,338 crore, driven by a strong performance across all key markets.

 

Similarly, revenue from growth markets formulations increased by 8.8% Y-o-Y to Rs 772 crore in the June quarter, compared to Rs 709 crore in the same period last year.

 

However, the company’s US formulations business, which accounts for 44% of its revenue, saw a marginal 1.9% Y-o-Y dip in sales, from Rs 3,555 crore in Q1 FY25 to Rs 3,488 crore in Q1 FY26.

 

According to the company’s regulatory filing, the decline in US revenue was primarily due to a significant reduction in sales of the anti-cancer medication lenalidomide.

 

Commenting on the company’s performance, K. Nithyananda Reddy, Vice Chairman and Managing Director of Aurobindo Pharma, said that the company has started FY26 steadily, with its European business maintaining strong growth momentum and the core US business showing resilience despite temporary challenges from destocking and seasonal dynamics.

 

The company announced its results after market hours. On Monday, Aurobindo Pharma’s shares rose marginally by 1.04%, ending the day’s trade at Rs 1,090.90 apiece on the exchanges.